Decision details

Cabinet was informed that there was a high housing need for affordable housing in all areas of the Borough. It was therefore important that the Council increased the number of affordable units built to help meet this demand. For housing developments over ten units, there was a requirement to provide a proportion of affordable housing. This proportional requirement varies across the Borough, based on housing market areas, but in-line with planning policy developers had to provide affordable housing, either on site or as an off-site payment.

When an off-site payment was sought and agreed, the cost per unit is currently £45,000. This had been the case for approximately ten years and was no longer fit for purpose. The off-site contributions were used to fund additional affordable housing units on alternative sites. The provision of on-site affordable housing and an off-site contribution should be comparable in cost to the developer. Currently, should a developer make an off-site contribution this was a significantly cheaper option than providing on-site provision. It was therefore proposed that this amount be increased to £85,000. The increased cost will support the Council to deliver the developments identified in the Council’s Housing Delivery Plan.

RESOLVED that the new affordable housing amount of £85,000 per unit be approved.

Reason

The increased cost will support the Council to deliver the developments identified in the Council’s Housing Delivery Plan.