South Warwickshire Working Together

Affordable Housing SPD

Ended on the 22 February 2020
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(3) Delivering Affordable Homes

Obtaining Planning Permission

Developers are strongly advised to speak to the Council's Planning and Housing Officers prior to the submission of a planning application. They will be able to advise the applicant of the affordable housing requirements. The developer is advised to open negotiations with a RSL/RP, or other affordable housing provider, at an early date so that a scheme can be worked up which is acceptable to all parties and the funding can be determined.

On submission of a planning application, the applicant should be able to supply the following details of the scheme:

  • The overall mix of housing
  • The number of affordable homes to be provided
  • The location on the site
  • The numbers of social rented and intermediate homes (full and reserved matters applications only)
  • The sizes and types of each home (full and reserved matters applications only)
  • Alternative arrangements to on-site provision (in exceptional cases only)

The developer should consider whether they wish to hand over serviced plots to the affordable housing provider or build homes on behalf of, and to the agreed specifications of, an affordable housing provider and then sell to them at an agreed price. Where social rented housing is provided, the cost to the provider should be not more than the amount which the provider can finance from proposed rents. Where intermediate housing is provided, it should be offered to the provider at a price which will enable them to offer the house at an affordable cost/rent to a household in need.

Timescale for Delivery

The Council will need to ensure that the affordable homes are built alongside the market homes.

The best way of achieving this is to include a clause in a Section 106 agreement to the effect that, where completed units are sold to an affordable housing provider,

  • no more than 50% of the open market dwellings shall be occupied until 50% of the affordable houses are ready for occupation; and
  • no more than 95% of the open market dwellings are occupied until all of the affordable houses are ready for occupation.
Where serviced land is transferred to a provider, or a financial contribution is paid instead, the Section 106 agreement will state that no more than 50% of the open market dwellings shall be occupied until the affordable housing land is transferred to the provider or the financial contribution is paid to the Council.

Legal Agreements

The agreement will normally cover the following aspects of the scheme (in relation to affordable housing):

  • the number of affordable homes;
  • the timing of the construction of the affordable homes in relation to the development of the rest of the site;
  • the transfer of the homes to, and management by, a Registered Social Landlord (or as otherwise agreed by the District Council);
  • the allocation of the homes to persons on the HomeChoice lettings scheme (or successor schemes);
  • the retention of the homes as affordable housing on a rented or shared ownership basis (subject to exceptions for mortgagees in possession, people who staircase to full ownership and people who exercise their Right to Acquire);
  • the sizes and tenure of the affordable homes (full planning permission or reserved matters only) and
  • the standards of construction of the affordable homes (full planning permission or reserved matters only).
The Council has produced a template Section 106 Agreements for residential developments which can be found in Appendix iii.

For instructions on how to use the system and make comments, please see our help guide.
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