Councils Cut Cash Deals In Place Of New Homes

The amount of cash accepted by councils from developers in place of new affordable homes has nearly trebled in two years. An Inside Housing survey of 161 English councils reveals 74 authorities accepted £67 million of ‘commuted sums’ paid in lieu of affordable homes on development sites in 2011/12. This compares with 51 councils [out of the same 161] accepting £28.9 million in 2010/11 and 39 councils accepting £23.4 million in 2009/10. The figures show authorities are increasingly accepting developers’ arguments that it is not viable for them to include affordable housing in schemes in the current economic environment. This is despite it being a planning condition, known as a section 106 obligation. Councils insist commuted sums are ring-fenced for affordable housing elsewhere, but it is feared the cash may not always be collected properly or may be used for other purposes. There are also warnings that commuted sums could lead to fewer affordable homes being built, and prevent the creation of mixed-tenure communities. Read more on Inside Housing.