Affordable Housing Statement
Major residential developments in England are expected to deliver a proportion of affordable housing. The Affordable Housing Statement is the document that sets out how your scheme will meet this requirement. It is a document that planning committees scrutinise closely, and getting the affordable housing offer wrong can derail an otherwise acceptable application.
Typical Cost
£300 – £5,000+
Turnaround
1 – 6 weeks
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What is a Affordable Housing Statement?
An Affordable Housing Statement sets out the amount, type, tenure, and location of affordable housing to be provided as part of a residential development. It explains how the proposal meets the local plan's affordable housing policy and the requirements of the NPPF. The statement should address the mix of social rent, affordable rent, shared ownership, First Homes, and any other intermediate products, and demonstrate that the affordable units are integrated into the overall scheme rather than segregated.
When is a Affordable Housing Statement required?
An Affordable Housing Statement is required for residential developments that meet or exceed the local authority's affordable housing threshold. Under the NPPF, the national threshold is 10 dwellings or more (or sites of 0.5 hectares or more). In designated rural areas, local authorities can apply a lower threshold of 5 dwellings. Some London boroughs and other councils set their own thresholds through local plan policy. If your scheme triggers the threshold, the statement is a validation requirement.
What does a Affordable Housing Statement include?
The statement should cover the total number of dwellings proposed, the number and percentage of affordable units, the tenure split between social rent, affordable rent, shared ownership, and First Homes, the size mix of affordable units, their location within the site, proposed rent levels or sale prices, arrangements for management by a registered provider, and any justification for departing from the full policy requirement. Where viability is cited as a reason for a reduced offer, a separate Viability Assessment will also be needed.
How much does a Affordable Housing Statement cost?
An Affordable Housing Statement is relatively straightforward to prepare and typically costs between £500 and £1,500 when produced by a planning consultant. However, if the affordable housing offer is below the policy target and a Financial Viability Assessment is needed to justify the shortfall, the combined cost can rise significantly — viability assessments alone often cost £5,000 to £20,000 for major schemes. Where a scheme is policy-compliant, the statement itself is not an expensive document.
Who can prepare a Affordable Housing Statement?
Affordable Housing Statements are usually prepared by planning consultants, often those who are members of the Royal Town Planning Institute (RTPI). Housing specialists and affordable housing advisors may also contribute, particularly on larger schemes where the tenure and management arrangements are complex. Registered providers of social housing can provide valuable input on the deliverability of the proposed affordable units.
How long does a Affordable Housing Statement take?
A straightforward Affordable Housing Statement can be prepared within 1 to 2 weeks, provided the tenure mix and dwelling numbers are agreed. If negotiations with the local authority's housing officer or a registered provider are needed, the process can take longer. Where a Viability Assessment is required, the whole exercise — including council review and potentially independent scrutiny — can extend over several months.
Frequently Asked Questions
How many affordable homes do I need to provide?
The percentage varies by local authority but is typically between 20% and 50% of the total number of dwellings proposed. The NPPF sets a national expectation that major developments should contribute to affordable housing needs, but the specific percentage is set in the local plan. Check your council's adopted policy for the exact requirement — it may also vary by location within the borough.
What is a First Home and do I have to include them?
First Homes are a form of discounted market housing introduced by the government in 2021. They must be sold at a discount of at least 30% below market value to first-time buyers with a household income below £80,000 (£90,000 in London). National planning policy requires that 25% of all affordable units should be First Homes, with the remainder split between other tenures as set out in local policy.
Can I provide fewer affordable homes than the policy requires?
Only if you can demonstrate through a Financial Viability Assessment that delivering the full policy requirement would make the scheme unviable. The burden of proof lies with the applicant, and the council will typically commission an independent review of your viability assessment at your cost. Planning authorities are increasingly rigorous in scrutinising viability arguments, and a blanket claim of unviability is unlikely to succeed.
What is the difference between social rent and affordable rent?
Social rent is set using the government's rent formula and is typically 40-60% of market rent. Affordable rent can be charged at up to 80% of market rent including service charges. The distinction matters because social rent is significantly cheaper for tenants. Many local plan policies specify a preference for social rent, particularly in areas of high housing need and high market values.
Do affordable homes need to be the same quality as market homes?
Yes. The NPPF and most local plan policies require affordable housing to be indistinguishable from market housing in terms of design quality, materials, and space standards. Affordable units should be integrated throughout the development, not clustered in the least desirable location. Planning authorities will resist 'poor door' arrangements or obvious visual differences between affordable and market units.
Can I pay a commuted sum instead of building affordable homes on site?
In some circumstances, yes. If the local authority agrees that on-site provision is not practical or appropriate — for example, on very small sites where management by a registered provider is not feasible — a financial contribution in lieu of on-site provision may be acceptable. However, most councils prefer on-site delivery and will only accept commuted sums in exceptional cases. The sum is usually calculated to reflect the cost of providing equivalent affordable housing elsewhere.
Do I need an Affordable Housing Statement for a scheme of 9 homes?
Under the national threshold in the NPPF, affordable housing contributions are not required for schemes of fewer than 10 dwellings. However, some local authorities in designated rural areas can set a lower threshold of 5 units. Always check the local plan and any supplementary planning documents, as local policy may impose requirements below the national threshold.
What tenure mix should I propose?
The tenure mix should reflect the local plan policy and the identified housing need in the area, as set out in the council's Strategic Housing Market Assessment or equivalent evidence base. Typically, councils seek a mix of social or affordable rented homes and intermediate products such as shared ownership or First Homes. Engaging with the council's housing team early in the process can help you agree an appropriate mix before submission.
Who manages the affordable homes after completion?
Affordable rented and shared ownership homes are usually transferred to a registered provider of social housing (housing association) who will manage and maintain them in perpetuity. You should engage with a registered provider early in the process to agree terms of transfer, as the provider's requirements can influence the design, specification, and location of the affordable units.
What happens to affordable housing obligations if I sell the site?
Affordable housing obligations are typically secured through a Section 106 agreement, which is a legal agreement attached to the land rather than the applicant. This means the obligations transfer to any subsequent owner of the site. The new owner is bound by the same affordable housing requirements as the original applicant, including the number, tenure, and timing of delivery.