1. LDP Affordable housing 2011_Layout 1 12/07/2011 08:04 Page 1 Supplementary Planning Guidance: Affordable Housing Adopted March 2011 1. LDP Affordable housing 2011_Layout 1 12/07/2011 08:04 Page 2 1. LDP Affordable housing 2011_Layout 1 12/07/2011 08:04 Page 3 Affordable Housing ContentsContents 1 Introduction ..............................................................................4 2. Policy Context............................................................................4 3. Issues ........................................................................................8 3.1 Definition of Affordable Housing ........................................................8 3.2 Housing Needs......................................................................................8 4. Planning Considerations and Requirements................................9 4.1 Process ..................................................................................................9 4.2 On Site Provision ................................................................................10 4.3 Off Site Provision................................................................................11 4.4 Financial Contributions......................................................................11 5. Appendices ..............................................................................12 Appendix 1 – Glossary of Terms Appendix 2 – Map of LDP Strategy Areas Appendix 3 – List of Wards by Strategy Areas Appendix 4 – ”List of Registered Social Landlords (RSLs) Appendix 5 – Current Acceptable Cost Guidelines Appendix 6 – Annual Affordable Housing Need Map (LHMA 2010) Local Development Plan 2006 - 2021 • 3 1. LDP Affordable housing 2011_Layout 1 12/07/2011 08:04 Page 4 Supplementary Planning Guidance 1. Introduction Policy CS 5 – Affordable Housing 1.1 The overall aim of the Local Development Plan (LDP) is to ensure that The housing requirements identified in Policy CS 4 will be expected to ‘Rhondda Cynon Taf will be a community where everyone who lives, works or contribute to established community housing need by providing 1770 visits the area will enjoy the benefits of a better quality of life, achieving their affordable units over the plan period. potential, whilst helping to develop and protect the area for future generations’ 1.2 Access to a good quality affordable home is a key determinant in meeting this 2.3 One of the key mechanisms for delivering this policy is the area-wide aim. However, due to a combination of low local incomes, escalating property affordable housing policies in the Local Development Plan, which are as prices and an increasingly competitive housing market, many local people follows: can no longer meet their housing needs through the private housing market. Whilst the planning system is not the only method of meeting this need, it Policy NSA 11 – Affordable Housing plays an important role in increasing the supply of good quality affordable homes. The provision of at least 10% affordable housing will be sought on sites of 10 units or more. 2. Policy Context 2.1 The purpose of this Supplementary Planning Guidance (SPG) is to provide detailed guidance on how the Council will implement the affordable housing Policy SSA 12 – Affordable Housing policies contained within the LDP in order to meet housing need as identified The provision of 20% affordable housing will sought on sites of 5 units or in the Local Housing Market Assessment. more. 2.2 The delivery of affordable housing in Rhondda Cynon Taf will be through the implementation of policy CS 5 – Affordable Housing. This is a core policy and is designed to deliver Strategic Objective 1 of the LDP which is to ‘provide for the overall housing requirement through a mix of dwelling types catering for all needs to promote integrated and thriving communities.’ Policy CS 5 is as follows: 4 • Local Development Plan 2006 - 2021 1. LDP Affordable housing 2011_Layout 1 12/07/2011 08:04 Page 5 Affordable Housing 3 Issues 3.1 Definition of Affordable Housing 3.2.2 The LHMA assessed the backlog of housing need, current need and newly arising need in the context of affordable housing supply. The LHMA found that 3.1.1 Technical Advice Note (TAN) 2: Planning And Affordable Housing (2006), there is a current shortfall of up to 578 affordable houses per annum in defines the term affordable housing as: Rhondda Cynon Taf. “…housing where there are secure mechanisms in place to ensure that it is accessible to those who cannot afford market housing, both on first occupation 3.2.3 The LHMA identified differences in average property prices and affordability and for subsequent occupiers …” (TAN 2, 2006) in Rhondda Cynon Taf between the Northern and Southern parts of the County Borough. The breakdown of this shortfall in affordable housing units across 3.1.2 There are two main types of affordable housing as defined by TAN 2: the twelve grouped sub market areas in the County Borough is shown in • Social Rented Housing – provided by local authorities and Registered Appendix 6. Social Landlords where rent levels have regard to the Welsh Government’s 3.2.4 7% of the housing need across the County Borough is for intermediate housing guideline rents and benchmark rents; (low cost home ownership), with the remainder being for social rented • Intermediate Housing – where prices or rents are above those of social housing. rented housing but below market house prices and rents. This includes low cost home ownership models such as shared equity or assisted 3.2.5 Whilst securing affordable housing is a key aim of the local authority, it must purchase schemes. be achieved in a manner that balances the social economic and environmental needs of the communities in Rhondda Cynon Taf. The delivery of 578 affordable housing units per annum through the planning system 3.2 Housing Needs would mean that 60% of all new housing constructed in Rhondda Cynon Taf 3.2.1 Rhondda Cynon Taf County Borough Council conducted a LHMA in 2010. This would be affordable. Such an approach would impact dramatically on the utilised the Welsh Assembly Government’s Quantitative Housing Assessment operation of the housing market. The planning system will therefore seek to Model to determine need for affordable and market housing within Rhondda deliver 1770 units of affordable housing over the plan period. The Council will Cynon Taf from 2010-2015. aim to provide the remainder in partnership with Registered Social Landlords through the operation of Social Housing Grant, and by encouraging the re-use of existing empty properties. Local Development Plan 2006 - 2021 • 5 1. LDP Affordable housing 2011_Layout 1 12/07/2011 08:04 Page 6 Supplementary Planning Guidance 4 Planning Considerations & Requirements 4.1 Process 4.1.6 As a result in changes in the policy context for affordable housing, affordable housing provision will be sought on planning applications for the renewal of 4.1.1 The requirement to provide affordable housing is a material consideration in planning consent for housing on sites which meet the thresholds, even if there determining all planning applications for residential developments within was no previous affordable housing obligation. Rhondda Cynon Taf. 4.1.7 The Council appreciates that in exceptional circumstances where there are 4.1.2 The delivery of affordable housing through the planning system is to be significant abnormal costs associated with a development, the provision of through three policy mechanisms: affordable housing may make a site unviable for development. Where site • The provision of an appropriate proportion of affordable housing on site; viability is considered to be an issue, developers will be required to provide • Contributions for off site provision (see paragraph 4.4.1); to the Council details of: • The development of sites in rural areas. • The acquisition price of the site 4.1.3 In recognition of the different housing markets and housing need in the two • Projected construction costs strategy areas, the threshold for affordable housing provision will be different in • Additional costs the north and south of the County Borough (see paragraph 2.3). Further details • Proposed final sales value per unit of the thresholds and levels of provision are in the Planning Obligations SPG. • The developers profit requirement. 4.1.4 Where the Council identifies that developers have sub-divided sites in order 4.1.8 The Council will then use a Development Appraisal Toolkit to examine the to avoid affordable housing provision, the total residential unit provision will economics of the development and determine the viability of affordable be calculated and the affordable housing policy will be applied accordingly. housing provision. Where the developer can demonstrate that the provision This approach will also apply where planning applications are staggered over of affordable housing required would not be viable, a lower percentage may a period of time. be negotiated. In the event of a dispute over site viability, the local authority will commission an independent consultant for a third party appraisal. The 4.1.5 Affordable housing will be required on all outline, full or change of use cost of this independent appraisal will be met by the developer. planning applications for housing which meet the thresholds. In situations where affordable housing has been secured at outline planning stage, any change in numbers as a consequence of a subsequent application may result in an increase or decrease in affordable housing provision.