Draft Core Strategy (incorporating Preferred Options) October 2010

Draft Core Strategy (incorporating Preferred Options)

Definition of Affordable Housing

8.23 PPS3 defines affordable housing as follows:

'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[1], 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 Housing Corporation as a condition of grant.’
 
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 (eg HomeBuy), other low cost homes for sale and intermediate rent.’
 
These definitions replace guidance given in Planning Policy Guidance Note 3: Housing (PPG3) and DETR Circular 6/98 Planning and Affordable Housing.
 
The definition 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.
 
The terms ‘affordability’ and ‘affordable housing’ have different meanings. ‘Affordability’ is a measure of whether housing may be afforded by certain groups of households. ‘Affordable housing’ refers to particular products outside the main housing market.[2]
1. As of 1st April 2010, Registerd Social Landlords (RSL’s) are referred to as Private Registered Providers (PRP’s) [back]
2. Annex B, Planning Policy Statement 3: Housing (2010) [back]