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Affordable Housing Development

Housing development

For many years, house prices and rents in the UK have outpaced average incomes. Recent data as of February 2024 indicates a slight decline in prices, with rates dropping approximately 0.5%. Expectations are that this trend may stabilise around 3 to 4% by the end of the year. However, due to previous increases, these prices remain unaffordable for many, leading to a growing demand for affordable housing as more individuals struggle to afford homes, whether to purchase or rent.

In February 2024, the average house price in South Holland stood at £259,900, lower than the regional average of £275,200.

The demand for affordable homes, whether for rent or purchase, remains high across the district. The Council collaborates with developers and Housing Associations (also known as Registered Providers) to boost the provision of affordable housing throughout the district, aiming to meet local needs.

Affordable Housing

The national definition of affordable housing is outlined in the National Planning Policy Framework. It encompasses housing for sale or rent, catering to those whose needs are not met by the market. This includes housing offering a subsidised pathway to home ownership and/or is essential for local workers. The area primarily sees the development of two types of affordable housing:

  1. Affordable housing for rent - available either as Affordable Rent, set at the lower value between the Local Housing Allowance for the area or 80% of the market rent for a comparable property in the vicinity, inclusive of any service charges; or as Social Rent, where the national rent regime determines rents.
     
  2. Intermediate housing for sale - this category includes first homes, shared ownership, shared equity, rent to buy, and other models tailored to assist individuals in purchasing or part-purchasing a home, providing them with a pathway onto the property ladder they might otherwise not attain.

Policy requirements for affordable housing

The Council's current Local Plan stipulates that a 25% provision of Affordable housing will be sought on Market housing sites comprising 11 or more dwellings (or residential developments with an internal floor area of 1,000 sqm or more).

In cases where circumstances render it impractical to achieve the 25% Affordable housing target, developers are required to furnish clear, sound, and robust evidence justifying the deviation. The Council will independently assess this evidence, and any associated costs will be billed to the developer.

Early engagement with the Council's Strategic Housing Team is advisable for all projects involving an element of affordable housing. To reach the Strategic Housing team, please dial 01775 764641.

How affordable homes are provided

There are several Registered Providers with stock across the district. 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 who may be interested in purchasing affordable homes from local developers include:

If you would like to deliver affordable homes or discuss this in more detail, please contact Strategic Housing on 01775 764641.

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