Government May Ease Affordable Housing Requirements Amid Viability Pressures
- TP Editorial Team
- 5 hours ago
- 2 min read
Policy review signals more flexibility ahead
The Government is reportedly considering measures to make affordable housing requirements more flexible, amid growing concern that current targets are stalling development across the country.
In London, Mayor Sadiq Khan has confirmed that “nothing is off the table” as the Greater London Authority reviews the city’s long-standing 35 per cent affordable housing threshold. Developers argue that the existing target renders many schemes unviable given higher build costs, rising interest rates and reduced demand for shared-ownership or discounted-market units.
Some reports suggest the threshold could be reduced to between 15 and 20 per cent in a bid to restore viability and encourage stalled sites to move forward.
National changes also under discussion
At national level, proposals within the Planning & Infrastructure Bill and the ongoing National Planning Policy Framework (NPPF) review point to a broader willingness to adjust affordable housing requirements.
Consultation documents indicate that ministers are considering the removal of the 10 per cent requirement for affordable homes on major schemes, together with greater local discretion over tenure mix. The Bill also contains powers that would allow ministers to intervene where local plan policies are judged to be holding back delivery.
Although no formal change has yet been made, government rhetoric now focuses on balancing the need for affordable housing with the financial reality of bringing forward sites in a high-cost environment.
Industry and sector reaction
Housing charities and registered providers have warned that reducing affordable quotas could undermine long-term supply and exacerbate inequality.
The National Housing Federation has said that cuts “are not the answer” to viability pressures, calling instead for renewed public subsidy and stronger support for social-rent delivery.
Nevertheless, most stakeholders recognise the urgency of tackling stalled development pipelines and ensuring that planning obligations remain realistic in current market conditions.
Likely approach: incremental and locally variable
Any reform is expected to be evolutionary rather than immediate. Adjustments are most likely to appear through revised local plans and updates to the NPPF rather than through a single national directive.
The forthcoming London Plan review is expected to set the tone, testing a more pragmatic approach to affordable housing delivery that could later be adopted elsewhere.
Implications for landowners and developers
For developers and landowners, the emerging position offers cautious opportunity. Over the next year, there may be more scope to negotiate affordable-housing contributions where viability is marginal—particularly on brownfield or regeneration sites.
However, until legislative changes are confirmed, applicants should continue to base appraisals on current local policy while ensuring that their viability evidence is robust and defensible.
Tyler Parkes comment
Tyler Parkes will continue to monitor the evolving national and regional position and advise clients as the policy picture becomes clearer. Our planning and viability specialists can assist in preparing development appraisals and negotiating affordable housing contributions in light of changing national policy.
For further information, please contact the Tyler Parkes Planning team.
Comments