‘It’s Obscene’ - £80m Revamp Set To Include Just Four Affordable Homes

New homes, a hotel and offices are to be created in Norwich after an £80m revamp of the area around a former shoe factory was given the go-ahead. But opponents to the proposals said it was “obscene” that only four affordable homes are planned. There was criticism that a viability assessment written for the developers had argued a provision of 50 affordable homes - which would have hit a 33pc target for affordable housing - would prevent the scheme being cost-effective. Instead they had argued only four affordable homes, or a commuted sum of £353,234, would be acceptable to allow work to begin at the site. Read more on the Norwich Evening News website.

Cash Payments Accepted Instead Of Affordable Housing Soar

Councils are accepting soaring levels of cash from developers looking to escape building affordable homes onsite, research has revealed. Freedom of information requests obtained from 196 councils revealed a total of £468.8m in commuted sums had been agreed over four years, rising from £87.2m in 2011/12 to more than £112.8m in 2014/15. More than half said they had not yet reinvested any of the money, which is paid where a developer cannot or will not provide affordable housing onsite as required by planning policies. The research shows that since 2011/12, at least 3,300 affordable homes were ‘not built onsite’ as a result of commuted sums being accepted.  Read more on Inside Housing.

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.