This item was published during the term of a previous administration that ended in April 2007
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Affordable housing benchmark for new developments
07/03/2005
First time buyers and families seeking affordable rented
homes will be among those to benefit from the effect of new
planning guidance issued today.
A quarter of homes on all new housing developments - in
areas identified as having affordable housing needs -
should be provided for rent or low cost ownership according
to the guidelines.
The
Planning Advice
Note (PAN) 74 'Affordable Housing' is the latest
element of the Executive's commitment to increase the
supply of affordable homes across Scotland.
Communities Minister Malcolm Chisholm said he was
determined to ensure more affordable homes, of the right
type and tenure, were provided in areas of need across
Scotland. He said:
"People wanting to get a foot on the property ladder, or
move into rented accommodation near work or family, are
often frustrated by the lack of affordable housing
available where they want to set up home.
"We recognise these frustrations and are determined to
tackle the affordable housing issue on a range of fronts,
led by an expansion of our investment in affordable housing
to £1.2 billion over the next three years, increasing the
development programme from 18,000 to 21,500 new affordable
homes.
"It is clear that the planning system also has a key
role to play in the development of mixed, sustainable
communities with a range of housing types and tenures.
"Our new guidance expects councils, developers and
housing associations to work together in identifying areas
of affordable housing need and providing a percentage of
units in each development for low cost ownership or
rent.
"In areas where a clear need is identified, we are
recommending a benchmark figure that each site contribute
as affordable housing a quarter of total units
provided.
"It will be vital that planning authorities, in
identifying areas of need and in setting percentage
contributions, spell these out clearly in their development
plans, creating a climate of certainty and confidence for
developers and housing associations to operate in."
Recent research and existing planning policies recognise
that some areas of Scotland have an adequate or surplus
supply of affordable housing, while in other areas there is
a shortage.
PAN 74 provides advice and information, including
existing examples of best practice, and seeks to speed up
the development of both market and affordable housing by
ensuring that any affordable housing requirement included
in a development plan is realistic.
Where councils identify affordable housing needs through
their local housing strategy development, and where they
plan to use the planning system to support affordable
housing provision, the PAN says this must be set out in
Local Plan policy, and must be justified by a housing needs
assessment.
Where the Local Plan sets a percentage affordable
housing figure for a housing development site, the general
expectation will be that the developer should contribute a
proportion of the site to be developed, at a reduced price,
to a housing association. The affordable housing component
should be well-integrated into the overall development and
have good linkage to services, including public
transport.
During 2004, the Executive carried out a wide-ranging
Review of Affordable Housing, which examined the
functioning of the housing market and its impact on
affordability, assessed affordable housing requirements,
and considered measures to improve supply and
affordability, and ways to address the imbalances between
supply and requirements in local areas.
Affordable housing is broadly defined as housing of a
reasonable quality that is affordable to people on modest
incomes.
Planning Advice Notes (PANs) provide advice on good
practice and other relevant information.
Scottish Planning Policy 3 (SPP3) already states that
planning authorities should assess future housing land
requirements for each housing market area and ensure that
land is identified to meet requirements including
affordable housing needs
Affordable housing is delivered by housing associations
with some form of public subsidy. Where sites fall outwith
areas of strategic funding, affordable houses built by
developers without subsidy could have a role to play.