The Affordable Housing Viability Study was jointly commissioned by Winchester City Council, East Hampshire District Council and Basingstoke and Deane Borough Council and is set in the context of a serious housing affordability problem and shortage of affordable housing supply.
The report builds on the 2008 Strategic Housing Market Assessment (SHMA) which examined the impact of affordable housing policies on the viability of housing development at a more strategic level. The aim of the report is to examine the impact of affordable housing policies on the viability of smaller housing developments within the borough.
The report comprises part of the evidence base for the Local Development Framework and does not constitute council policy; it will be utilised to inform policy development for the Core Strategy.
This report considers the impact of affordable housing on viability, and focuses on small sites testing a range of scenarios, providing advice on:
- The areas of potential difficulty in terms of viability,
- Establishing an appropriate threshold (for the provision of affordable housing) between on site provision and a tariff on small sites,
- Determining appropriate tariff levels and methodology for the calculation of tariffs, and
- The likely market reaction to the policy approach and implications for the supply.
In summary, the report draws the following summarised conclusions:
- In larger settlements (more than 3000 population), the report recommends that the target threshold (for the provision of affordable housing) is reduced to 10 units at the 40% rate on site provision.
- In smaller settlements (less than 3000 population), the report recommends that the target threshold (for the provision of affordable housing)is maintained at 7 units at the 40% rate on site provision.
- For Basingstoke town, the report recommends a target threshold (for the provision of affordable housing)of 15 units at 40% on site provision.
- The report recommends a commuted sum payment system for developments that fall below the threshold for on site provision of affordable housing.
- Where no grant is available, and where a 40% on-site affordable provision of affordable housing is sought, the report recommends that infrastructure payments are limited.
- In order to maximise the opportunity for contributions to affordable housing, the report recommends that the council should monitor the performance of the residential market, so that it can develop robust cases for varying the amounts of the above financial contributions.
- The report recommends no differentiation in thresholds for affordable housing between the Western Corridor and other areas. It is acknowledged that the South East Plan has now been revoked thus removing the reference to the Western Corridor, however this remains within the report.
