Frequently Asked Questions

What is affordable housing?

Affordable housing includes social rented and intermediate housing, provided to specified 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; and
  • include provisions for:
    1. the home to be retained for future eligible households; or
    2. if these restrictions are lifted, for any subsidy to be recycled for alternative affordable housing provision.

Social rented housing is rented housing owned and managed by local authorities and RSLs, for which guideline target rents are determined through the national rent regime.

Intermediate affordable housing is housing at prices and rents above those of social rent but below market price or rents, and which meet the criteria set out above. These can include shared equity (e.g. HomeBuy) and other low cost homes for sale, and intermediate rent. See 'What is affordable housing for rent?' and 'What is affordable housing for sale?'

What is affordable housing development?

Affordable Housing development is where land and funding are secured for the provision of affordable housing.

What are exception sites?

Exception sites are areas of land which are outside of the village envelope. This land can only be used for the provision of affordable housing for the local residents of that village. The land cannot be sold for private housing developments.

What is a Section 106 Agreement?

A Section 106 Agreement is the legal framework which sets out the terms and conditions for the provision of affordable housing and other facilities. This agreement is part of planning requirements that the Local Authority will have with the housing provider.

What is the Community Infrastructure Levy (CIL)?

Legislation has been pased to introduce a Community Infrastructure Levy, a new charge which local authorities will be empowered but not required to charge on most types of new development in their area. CIL charges will be based on a simple formula relating to the size and character of the development paying it. Priceeds will be spent on local and subregional infrastructure.

S106 planning obligations can be used alongside CIL to secure affordable housing. As the Levy is not yet in operation, the parallel working arrangements are yet to be established.

What is a strategic housing market assessment (SHMA)?

A Strategic Housing Market Assessment (SHMA) is a piece of research undertaken by local planning authorities or regional bodies to help them develop an understanding of their local housing market areas. Local SHMAs are commissioned by local authorities and are an important part in the process of developing Local Development Frameworks.  It underpins the evidence base an authority will hold on affordable housing requirements.

What is an affordable housing policy?

An Affordable Housing Policy is developed to offer guidance to anyone seeking to develop homes in a particular local planning authority area.

It is a policy covering affordable housing requirements, which forms part of a local authority’s core strategy or other Development Plan Document. An affordable housing policy will set out where and when affordable housing contributions are required, and how these should be delivered. The policy can be enhanced through an Affordable Housing Supplementary Planning Document, which sets out in more detail the mechanics of how the policy will operate and be implemented.

What should be included within an affordable housing policy?

As a minimum your policy should set out a number target for the whole area affected by the policy, for the amount of affordable housing to be delivered and split this between social rented and intermediate affordable housing. It should specify the size and type of housing to be provided and the circumstances in which affordable housing is to be provided e.g. minimum size of site to be included within the policy, as well as the authority’s approach to seeking developer contributions. There are other considerations. For the detail, see the main section 'What should be included within an affordable housing policy?'

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