Government plans to squeeze more affordable housing from planning gain on commercial sites could be a major breakthrough for social housing.
That was the view of housebuilders, housing bodies and the London mayor's housing advisor, who have all backed DTLR secretary Stephen Byers' suggestion that more affordable housing might come out of the planning system – even on business sites.

Currently, councils can decide that some affordable housing should be provided only in residential development, or ask for payment in lieu to build it elsewhere.

Neale Coleman, housing advisor to Ken Livingstone, said the proposal was "a big policy change, of a significance underrated by commentators."

"It's not something they've being willing to say before. And it is on the record – they are looking at it," he told Housing Today.

Speaking at the Starter Homes Initiative launch last month, Byers indicated that new planning powers might see councils get affordable housing from commercial developments.

But some say the right to ask for affordable housing planning gain is vague, and lets councils and developers off the hook.

Tim Southall, policy officer at the National Housing Federation said: "We see many positive benefits for developing mixed and inclusive communities by seeking planning contributions for affordable housing provision from commercial developments."

Helen George, Chartered Institute of Housing policy officer, said the move would not only increase supply in areas where space is at a premium, but also benefit market towns by reducing the need to build on greenfield sites.

A spokesman for the Housebuilders Federation said the move would create mixed-use sites: "If we have more homes and jobs together, then that's a very good thing," he said.

Housing minister Lord Falconer has said that he believes central government has a role in getting 'even better' affordable housing planning gain from private developers.

But a DTLR spokeswoman said no decisions had been made.

Source

Housing Today