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Affordable housing quota rule under fire

Mark Linington
Mark Linington

GREATER flexibility in Government affordable housing threshold levels could mean more low-cost homes, according to land and property experts RPC Land and New Homes.

The company believes current rules may influence land owners seeking to maximise a plot’s value at a cost to the number of affordable houses being built.

The threshold level for sites to include affordable housing is generally dropping and a number of Kent local authorities have lowered, or are in the process of reducing, their threshold from about 25 to 14 – this means any scheme with more than 14 units will require a percentage (40 per cent or higher) to be affordable.

For example, a plot that can carry 20 units will require eight to be affordable housing.

Under current rules it may make more sense for the landowner to build 14 units, which will require no affordable homes, thus increasing potential profit.

Mark Linington, who is based at RPC Land and New Home’s Maidstone office, said: "The issue here is that while the Government is trying to encourage more house-building with higher densities, there is little to encourage owners of sites of a size which falls close or near to the threshold to work towards this objective.

"In our view it would be a fairer system to have a stepped requirement. Once you get above a certain level then a provision of one unit for affordable would be appropriate.

"By adding two more units, an additional unit would be for affordable and so on until you were at a level where the 40 per cent figure was reached."

For more information visit www.rpcland.co.uk

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