Much to welcome in Tory proposals, but major risks for affordable housing
Friday 26 February 2010
The National Housing Federation has welcomed many aspects of the Conservative Party's planning green paper, but warned that the current proposals pose too great a risk to the delivery of affordable housing.
The Federation has welcomed parts of the green paper, especially the proposed shift in the planning system towards a presumption in favour of sustainable development and the greater scope for local communities to shape development in their area.
The Federation has also hailed the expectation that councils should provide local people with good quality information on housing need in each neighbourhood. And it has given a positive reception to the principle of giving local authorities and individual communities incentives to build more homes.
But it is the proposed scrapping of Section 106 that is a major concern, says the Federation.
The National Housing Federation, which represents housing associations, says that the Tory party’s plans to scrap the so-called ‘Section 106’ system – set out in its planning green paper – could lead to a reduction of up to 40% in the number of affordable homes delivered each year.
This is because under Section 106, private developers are obliged to build a minimum number of affordable homes on sites on which they are given permission to build new properties.
Around 64,000 of the 162,000 affordable homes to be built in England between April 2008 and March 2011, will be delivered through Section 106 agreements. And, under existing government plans, at least another 162,000 affordable homes are planned for the period between April 2011 and March 2014.
The Federation believes that any system that replaces Section 106 must be robust and deliver affordable housing where development is wanted and ensure affordable homes can be built, where necessary, even where there is some local opposition.
The Federation is also concerned that the Tories’ proposals to offer incentives to local communities to accept proposed building through the council tax system may not prove sufficient, as Federation research suggests the affordable housing incentives will add less than 1% to a typical council’s budget.
Federation chief executive David Orr said: “Much of what the Conservatives propose in their green paper is positive, and we support the party’s drive to create a simpler, more transparent and consistent planning system.”
However, he added: “The proposal to scrap Section 106 and replace it with a tariff system requires a leap of faith that the delivery of new homes will be maintained.
Section 106 delivers 40% of all affordable housing, but the Conservative proposals as they stand will put this delivery at too great a risk.
If a new planning system operates as the Conservatives envisage, all will be well; if it doesn't, we could lose up to 64,000 new affordable homes over three years.
The National Housing Federation is committed to working with all political parties to improve the planning system to support the delivery of new homes."
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