Affordable Housing Definition
The definition of affordable housing as stated in Planning
Policy Statement 3 is as follows;
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.
- Include provision for the home to remain at an affordable
price for future eligible households or, if these restrictions are
lifted, for the subsidy to be recycled for alternative affordable
housing provision
Social rented housing is:
Rented housing owned and managed by local
authorities and registered social landlords, for which guideline
target rents are determined through the national rent regime. The
proposals set out in the Three Year Review of Rent Restructuring
(July 2004) were implemented as policy in April 2006. It may also
include rented housing owned or managed by other persons and
provided under equivalent rental arrangements to the above, as
agreed with the local authority or with the Homes and Communities
Agency as a condition of grant..
Affordable rented housing is:
Rented housing let by registered providers
of social housing to households who are eligible for social rented
housing. Affordable Rent is not subject to the national rent regime
but is subject to other rent controls that require a rent of no
more than 80 per cent of the local market rent.
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 products (i.e. HomeBuy),
other low cost homes for sale and intermediate rent
The definition of affordable housing does not exclude homes
provided by private sector bodies or provided without grant
funding. Where such homes meet the definition above, they may be
considered for planning purposes as affordable housing.
Whereas those homes that do not meet the definition, for example,
‘low cost market’ housing may not be considered for planning
purposes as affordable housing.
Planning policy relating to affordable housing in
Peterborough
Peterborough City Council is currently in the process of
adopting revised planning policies known as the Local Development
Framework (LDF). The Peterborough Core Strategy is one of the
most important documents within the LDF. It sets out a series of
policies on a wide range of topics, and will significantly
influence how Peterborough grows over the next 15 years. The Core
Strategy was adopted by Council on 23rd February 2011.
The policies relating to affordable housing in the Core Strategy
are contained in Policy CS8, and include the following:
- Developers will be encouraged to bring forward proposals for
housing which will provide a mix of housing types and size that
will meet the identified need for Peterborough in order to secure
mixed communities
- On all development sites on which 15 or more dwellings are
proposed (whether as new-build or conversion), the City Council
will seek provision, through negotiation, of 30% of the dwellings
as affordable houses (unless the proposed development is itself for
more than 30% affordable housing). 70% of any affordable dwellings
shall be in the form of social rented homes and 30% in the form of
intermediate homes
- In terms of unit sizes, developers will be encouraged to bring
forward proposals which will, in overall terms, secure the
following mix:
- Affordable Housing – 67% one and two beds, 14% three beds and
19% four and more beds
- Market Housing – 50% one and two beds, 14% three beds and 28%
four and more beds
- The Council may release a site adjacent to a village envelope
for the provision of affordable housing, as an exception to the
normal policy of development restraint in the countryside
- Until such time as the construction of all dwellings to
Lifetime Homes Standards becomes a mandatory part of the national
Code for Sustainable Homes, on all development sites on which 15 or
more dwellings are proposed, there will be a requirement to provide
20% of the dwellings to Lifetime Home standard
- On all development sites on which 50 or more dwellings are
proposed, there will be an additional requirement to provide 2% of
the dwellings as wheelchair homes
Planning Obligations Implementation Strategy
The Peterborough Planning
Obligations Implementation Scheme (POIS) was adopted by
Peterborough City Council as a Supplementary Planning Document
(SPD), forming part of the Peterborough Local Development
Framework, on 8 February 2010. The SPD details the way in
which the City Council will seek to negotiate contributions from
developers and use those contributions to fund infrastructure and
facilities. The Council proposes to include this new policy
in the Peterborough Core Strategy.
Peterborough has a challenging and wide ranging agenda for
growth. Delivering growth that is sustainable and benefits
existing and new residents of the city is a priority of the
Peterborough Sustainable Communities Strategy. Significant
investment in new infrastructure is required to support the growth
of Peterborough. New residential and commercial development
provides contributions towards the costs of this new
infrastructure.
Affordable housing needs in Peterborough
In 2006, in accordance with emerging new guidance from central
Government, Peterborough City Council formed a partnership with
neighbouring authorities to create a Housing Market Area and
jointly commissioned a Strategic Housing Market Assessment (SHMA)
which was completed in 2007. Peterborough City Council also
commissioned a separate Housing Needs Survey. A copy of the
original SHMA, the Peterborough Housing Needs Assessment and a 2010
update of the SHMA are available to download from the
studies and
strategies page. The findings of these documents will
inform emerging planning policy.
Some of the key findings of the 2010 SHMA update are as
follows:
- That the total annual shortfall of affordable housing in
Peterborough is 1,008 units
- That the appropriate mix of new build affordable housing to
meet present need is 39% for one bed units, 34% for two bed units,
13% for three bed units and 14% for four bed and larger units
- That 27% of all households in Peterborough are unable to afford
market housing