So much of the housing that is built is way beyond the reach of local first-time buyers. Why is this and what needs to be done about it?
The NPPF (the National Planning Policy Framework, aka central government’s planning “bible”) defines affordable housing as: “Social rented, affordable rented and intermediate housing, provided to eligible households whose needs are not met by the market. Eligibility is determined with regard to local incomes and local house prices. Affordable housing should include provisions to remain at an affordable price for future eligible households or for the subsidy to be recycled for alternative affordable housing provision.”
Policy CSD1 in Folkestone & Hythe District Council’s Core Strategy Review sets out the affordable housing requirement for developments. For developments of 15 or more new homes, 22% of those homes should be affordable. Provision should be made on site.
So why aren’t more affordable houses being built in the district?
One of the main reasons is that the affordable housing requirement is “subject to viability”. Developers are expert at producing financial viability calculations which seem to prove that it just isn’t possible for them to provide the required housing.
Policy CSD1 has a get out clause for the provision needed to be on site too allowing off-site provision through a financial contribution of broadly equivalent value where it can be “robustly justified.”
We believe that the district council needs to be more robust in challenging financial viability calculations and enforcing the affordable housing requirement.
