Affordable Housing Development
This section will explore how affordable housing is delivered in the district and what future plans there are to deliver more affordable homes.
For many years, house prices and rents in the UK have grown faster than average incomes. This has led to an increasing need for affordable housing as more people struggle to afford to purchase or rent a home.
The average house price in South Holland was £169,250 in April 2016, which is higher than the Lincolnshire average but lower than the regional and national averages. This is a 4% increase from the previous year and 16% more than in 2011. The cost of renting in the district is higher than regional averages with average monthly rents as follows: £524 (1 bedroom); £594 (2 bedrooms); £693 for (3 bedrooms); £893 (4+bedrooms).
The demand for affordable homes, either for rent or to buy, is fierce across the district. The Council works with developers and Housing Associations (also known as Registered Providers) to try and increase the provision of affordable housing across the district to meet local needs. The Council has also developed a number of affordable schemes, and hopes to build more through our housing company, Welland Homes.
This article will provide information on the following:
The national definition of affordable housing is set out in the National Planning Policy Framework:
Affordable housing includes social rented, affordable rented and intermediate housing, provided to eligible households whose needs are not met by the market. Affordable housing should:
- Meet the needs of eligible households including availability at a cost low enough for them to afford, determined with regard to local incomes and local house prices
Include provision for the home to remain at an affordable price for future eligible households or, if these restrictions are lifted, for the subsidy to be recycled for alternative affordable housing provision.
New affordable homes being built in Spalding
The two types of affordable housing predominantly developed in the area are:
Affordable Rent - rents are set at 80% of the market rent for a similar property in the area
Intermediate housing - this covers shared ownership, HomeBuy, shared equity and other models designed to help people purchase or part-purchase a home where they would not otherwise be able to get onto the property ladder.
Historically social rented properties have been developed in the district. These are where rents are set in accordance with a national formula, and are well below market levels in most areas. It is unlikely that any more properties of this kind will be developed in the area.
Using current planning policy the Council requires one third (33.3%) of all development of more than 10 units or a maximum combined gross floor space of no more than 1000sqm in size to be affordable homes. This requirement is currently being tested as part of the emerging Local Plan and a new affordable housing percentage may be set dependant on the results of a viability study.
Any developers proposing to deliver less than one third affordable housing must provide clear and robust evidence demonstrating the reasons for this. The Council will test this evidence and all costs incurred will be recharged to the developer.
Early dialogue with the Council's Strategic Housing Team is recommended for all schemes with an element of affordable housing. They can be contacted on 01775 764 630.
There are currently 13 Registered Providers with stock across the district. There are also a number of private landlords and developers that own and manage affordable homes. The Council prefers affordable homes to be delivered through Registered Providers and early dialogue should be explored with them when plans are being developed. Registered Providers which may be interested in purchasing affordable homes from local developers include:
c/o Blue Skies Consortium at Longhurst Group
Tel: 01205 319710
c/o Blue Skies Consortium at Longhurst Group
Tel: 01205 319710
Cross Keys Homes
Tel: 01733 385000
Tel: 01799 532 130
Lincolnshire Rural Housing Association
Tel: 01790 754219
Tel: 0800 111 4013
Waterloo Housing Group
Tel: 0800 435 016
South Holland District Council may also be interested in purchasing the affordable units, they can be contacted on 01775 764858.
Since 2012 there have been 305 affordable completions as detailed below. 56% of these have been for affordable/social rent and the remainder have been for low cost home ownership products to buy.
The chart below shows the number of rented and low cost home ownership units by location developed since 2012.
Affordable homes completed since 2012 by location and tenure
The Council is committed to delivering more affordable homes and will continue to secure affordable housing contributions through planning gain. In addition to this the Council is hoping to deliver a number of affordable schemes with Registered Providers and through their own housing company Welland Homes.
Here are some highlights of what we hope to deliver with partners over the next few years:
An extra care housing scheme in central Spalding. Extra Care Housing is a specialist form of accommodation designed for vulnerable persons, such as those who are elderly, frail, disabled and/or experiencing conditions such as dementia, who want to retain their independence but require some care and support in order to do so.
The scheme has yet to go through the planning process, but if permission is granted the provision of extra care one and two bedroom apartments for affordable rent and low cost home ownership will be a first for the district and assist in meeting the needs of an ageing population.
New affordable homes in Long Sutton
An all affordable scheme in central Spalding. Discussions are taking place with partners to deliver all affordable schemes of affordable rent and low cost home ownership for around 40-50 homes in both central Holbeach and Spalding.
Council developed mixed tenure schemes at various locations throughout the district through the housing company 'Welland Homes'. The company has secured outline planning permission for 34 homes on two sites in Spalding. The mix and tenure is still being finalised but a number of these will be for affordable rent and low cost home ownership.
The company hopes to submit further applications in a number of locations throughout the district to provide affordable homes, and improve the quality and choice of homes to rent and buy in the private market.
If you would like to deliver affordable homes or discuss this in more detail please contact Strategic Housing on 01775 764630.
To apply for affordable housing you will need to apply to the Housing Register The Housing Register.