Policy GESP17: Affordable Homes

To ensure access to housing for people whose needs are not met by the market the GESP and local plans will give a high priority to providing affordable housing. Affordable housing delivery will be from the following sources: 

1. Approximately 9,970 from existing planning commitments
2. Approximately [figure to be determined after this consultation and viability assessment and identified in the Draft Plan] on Greater Exeter Strategic Plan allocations, provided in accordance with individual targets contained in each allocation policy and summarised as follows:
   1. Approximately [figure to be determined after this consultation and viability assessment and identified in the next version of the GESP] social and affordable homes for rent, to be let at no more than Local Housing Allowance levels in perpetuity
   2. Approximately [figure to be determined after this consultation and identified in the next version of the GESP] homes for affordable homeownership, sold with at least a 20% discount from market values in perpetuity
3. Affordable homes on other housing sites in accordance with the policies and allocations of local and neighbourhood development plans.

7.18 Access to housing for those on lower incomes is only likely to be achieved through the provision of defined affordable housing at below market rent or price Provision proposed in draft policy GESP17 is therefore key to ensuring that the benefits of growth go to a wider section of the local community. Affordable housing policies have for many years ensured that new housing areas are of mixed tenure, including homes which are limited to occupation by, and affordable to, people on lower incomes. We suggest to continue this nationally recognised and successful approach.

7.19 Affordable housing is more fully defined in the National Planning Policy Framework but can be summarised as subsidised housing for people whose needs are not met by the Broadly it includes two forms:

• Affordable housing for rent – means housing managed by a Registered Provider or Build to Rent landlord and let at subsidised rent The Local Housing Allowance sets a rent level which can be covered by Housing Benefit or Universal Credit and is therefore affordable to all households. It is therefore an appropriate maximum rental level for new affordable housing for rent. Social Housing is a form of rented affordable housing which gives higher subsidy and therefore lower rents.
• Affordable home ownership – products give a household the option to purchase at a subsidised price in various different ways, either immediately or after some years of living in a property. The Local Housing Needs Assessment (2nd Edition), undertaken to guide GESP policy, indicates potential demand from 13% of households at a 20% price discount, which is the minimum level of discount from local market prices required for affordable home ownership products by the National Planning Policy Framework.

7.20 The Local Housing Needs Assessment (2nd Edition) calculates that there is a need for about 24,300 new affordable homes for rent during the GESP plan period, or about 46% of the total housing need. The policy confirms that providing affordable housing remains a high priority. About 9,970 affordable homes can be expected from existing commitments. Subject to site decisions and further viability work to be carried out in the GESP process, targets will be set for the GESP allocations which will make significant additional provision. Finally, as local plans are prepared they will review their existing local plan policies and apply those to new housing developments in each district area, resulting in additional affordable housing provision. In this way, a proportion of the calculated need for affordable housing can be met.

7.21 A proportion of the affordable homes provided should be in the form of affordable home ownership, to reflect national planning policy that 10% of new homes on major developments should be of this type. These provide a 20% discount on market values, to be retained through re-sales of the homes. The remaining affordable homes on GESP sites are likely to be in the form of affordable rented homes, including social rented housing, reflecting the high level of need for this type of housing found in the Local Housing Needs Assessment (2nd Edition).

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