So how will we build affordable housing now?

The Chief Planner writes to 'Heads of Planning' (at local authorities) on behalf of the Scottish Government:

(Extract, letter 15/03/2011)

I am writing to you now regarding requirements for developers to contribute towards affordable housing. In particular I would like to raise the importance the Scottish Government attaches to planning policies, and the implementation of these policies, reflecting the current economic climate.

Scottish Planning Policy (SPP) states...

My letter of 29 October 2010 stressed the importance the Scottish Government places on removing constraints to the development of housing land in the current economic climate. Authorities will also be aware of the significantly lower levels of public funding that are likely to be available to support the development of affordable housing in the coming years. In these circumstances I suggest that authorities, in drawing up and implementing planning policies on affordable housing, should consider:

• Whether contributions of 25% or more are likely to be deliverable in the current economic climate. Levels of affordable housing requirement that act to stifle overall levels of housing development are likely to be counter-productive. In certain cases the effect could be that development would not proceed at all.

• The nature of affordable housing need in an area and the extent to which this can be met by proposals capable of development with little or no public subsidy. It is counter-productive to secure land for proposals requiring high levels of subsidy unless the authority is confident that a source for this subsidy can be identified.

So what will this mean in practice? What will happen to developments needed to contribute to affordable housing numbers; developments which are also heavily dependent on the provision of road infrastructure requiring subsidy for their viablity?

Highland's 'Housing Need and Demand Assessment' states:

The vast majority of affordable housing requires to be social rented – shared equity or mid-rent housing can take only a small fraction of households in housing need out of it.

And it is also said that some areas (Nairn perhaps?) need more social housing than 'Market Value' to keep up with the need.

See here for full letter.

(Thanks to Nairn contact for sending the link.)