William Eichler 05 March 2018

Developers exploit ‘loophole’ to squeeze affordable housing in rural areas

Housing developers are exploiting a legal loophole to deny rural residents access to affordable housing, campaigners say.

The Campaign to Protect Rural England (CPRE) studied eight rural councils over a one year period and found half of the affordable homes they were required to build were lost because of ‘viability assessments’.

Viability assessments allow developers to argue that building affordable homes could reduce their profits to below around 20% which, in turn, gives them the legal right to reduce their affordable housing quota.

This incentivises developers to over-pay for land and to make their money back by, as the CPRE puts it, ‘squeezing the affordable housing commitments’.

CPRE chief executive Crispin Truman points out that the lack of affordable housing is often seen as an urban problem and is overlooked in the countryside.

‘It cannot be ignored any longer,’ he said.

‘Too much of our countryside is eaten up for developments that boost profits, but don’t meet local housing needs because of the "viability" loophole.

‘CPRE is calling for urgent action from the Government to close the loophole to increase the delivery of affordable housing, otherwise rural communities risk losing the young families and workers which they need to be sustainable.’

SIGN UP
For your free daily news bulletin
Highways jobs

Residential Assistant

Essex County Council
£25081.00 - £25395.00 per annum
Residential AssistantPermanent, Full Time£25,081 up to £25,395 per annumLocation
Recuriter: Essex County Council

Senior Planning Officer

Durham County Council
Grade 11 £39,513 to £43,693 Grade 12 £42,708 to £46,731 per annum (Pay Award Pending)
Durham County Council is looking for experienced and knowledgeable Senior Planning Officers to join our vibrant Development Management team. Our team Durham
Recuriter: Durham County Council

Head of Service – Social Care

Wrexham County Borough Council
G15 £63,148 - £67,058 per annum
There is an exciting opportunity within Children Social Care to join the senior management team Wrexham (Wrecsam)
Recuriter: Wrexham County Borough Council

Head of Service Social Work & Specialist Support

Blackburn with Darwen Borough Council
Grade M scp 60 £72,118 - scp 64 £77,293
There couldn’t be a more exciting time to join us. Blackburn, Lancashire
Recuriter: Blackburn with Darwen Borough Council

Cafe Assistant - Weald Country Park

Essex County Council
Up to £13.3000 per hour
Café Assistant (Weald Country Park)Contract
Recuriter: Essex County Council
Linkedin Banner