City of WakefieldMetropolitanDistrict Council

Wakefield Metropolitan District Unitary Development Plan

SPG 6AffordableHousing

Supplementary Planning Guidance

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INFORMATION

This Supplementary Planning Guidance(SPG) was adopted by the Council on17th March 2004

It can be viewed and downloaded from theCouncil’s web-site at:www.wakefield.gov.uk

Copies are also available free of chargefrom:

Wakefield Metropolitan District CouncilRegeneration & Housing ServicesPO Box 92Newton BarWakefieldWF1 1XS

Tel: (01924) 306495Fax: (01924) 306660Minicom: (01924) 306600

For further information about the SPGcontact Spatial Policy Group, telephone:(01924) 306417.

An extract or summary of this SPG canbe made available in large print, Brailleon audio tape or in ethnic minoritycommunity languages on request.Contact (01924) 306616 / 306614 forfurther details.

The SPG was adopted by the Councilfollowing consultation with the public andother interested bodies and organisationsbetween Thursday 6th November andThursday 18th December 2003. A separateStatement of Consultation is availablegiving details of the consultationundertaken, the representations receivedand the Council’s response to each. Acopy of the statement in electronic or hardcopy form can be obtained from theaddress given above.

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1.0 Introduction

2.0 Planning Policy on Affordable Housing

3.0 Definition of Affordable Housing

4.0 Assessing the Need for Affordable HousingAffordabilityScale of NeedTypes of Dwellings

5.0 Meeting the Need for Affordable HousingExisting supply of Affordable HousingSite Size and LocationAssessing the Amount and Type of Affordable Housing on New SitesAbnormal CostsMarket ConditionsLevel of Subsidy

6.0 Delivering Affordable HousingPre-application arrangementsProcessing planning applicationsOptions for Delivery of Affordable HousingWorking with an RSL

7.0 Securing Affordable HousingUse of Conditions or Legal Agreements

8.0 Controlling Occupancy

9.0 Commuted Sums

10.0 Monitoring of Affordable Housing Provision

11.0 Design Considerations

12.0 Rural Exception Sites

Appendices

Appendix 1 Full extract of Affordable Housing Policy from UDP First Alteration

Appendix 2 Settlements fewer than 3000 people

Appendix 3 Example of Subsidy Calculation

Appendix 4 Planning Applications and Affordable Housing Procedure

Appendix 5 Alternative Options for Delivering Affordable Housing

Appendix 6 Note on Section 106 Agreements

Appendix 7 Housing Needs Statement

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Contents

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1.0 INTRODUCTION

1.1 The provision of good qualityaffordable housing is a key part ofWakefield’s Community Strategy,‘Fast Forward’. This strategyidentifies the ability to ‘deliverattractive environments by improvingour places’ as a central goal, in partthrough improving and maintainingsafe, affordable, quality housingenvironments.

1.2 Regeneration and Housing Serviceshave through housing and planningfunctions, the responsibility forfulfilling the challenge of providingadditional affordable housing whereand when required. The HousingStrategy, which is reviewed annually,provides the overall assessment ofaffordable housing requirements.The Wakefield Unitary DevelopmentPlan First Alteration (UDP) and thisSupplementary Planning Guidance(SPG) set the framework forsecuring affordable housing throughplanning applications. Annual targetswill be set and delivery will bemonitored. The following diagramshows how this SPG fits into theoverall picture.

Providing

Affordable

Housing

SupplementaryPlanningGuidance

PlanningApplications

Private SectorDevelopments

CommunityStrategy

'Fast Forward'

UnitaryDevelopment

Plan

AnnualHousing Needs

Statement

Best ValuePerformance

Plan

HousingStrategy

DirectGrant

Provision

Delivering Affordable Housing

STRATEGY

IMPLEMENTATION

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1.3 The Council wishes to ensure that aconsistent approach is taken to theimplementation of its affordablehousing policies. Developers canfeel confident that they are working inan environment which is fair andequitable. The Planning system hasa clearly defined role to play insecuring provision of affordablehousing; this guidance describesthat role and is designed to assist allthose involved in the provision ofaffordable housing. It is adoptedseparately by the Council as SPG tothe Wakefield UDP and is a materialconsideration when the Council isdealing with planning applications.

1.4 Its purpose is to:

outline the planning policyframework behind the provision ofaffordable housing;

explain the Council’s planningpolicies relating to affordablehousing;

set out the Council’s approach tothe provision of affordable housingto guide developers and the generalpublic when submitting planningapplications.

1.5 The Government advises developersto consult the Council as early aspossible in the developmentprocess. The Council will encouragethis approach at all times.

2.0 PLANNING POLICYON AFFORDABLEHOUSING

2.1 The statutory framework relating tothe provision of affordable housing isset out in Planning Policy GuidanceNote 3 - Housing, March 2000(PPG3) and DETR Circular 6/98 -Planning and Affordable Housing,April 1998. The framework isimplemented through RegionalPlanning Guidance, adopted October2001 (RPG) and more locallythrough statutory development plans(the Wakefield UDP First Alteration,adopted on 17 January 2003),augmented when necessary bySPG.

2.2 The government has recentlyreleased a consultation documententitled “Influencing the size, typeand affordability of housing”. Thisdocument would replace parts of theexisting guidance contained in PPG3and effectively cancel DETR Circular6/98. If government guidance ischanged during the life of this SPGthen the Council will negotiate foraffordable housing in accordancewith prevailing guidance. If newminimum threshold levels areintroduced for the provision ofaffordable housing these will beadopted by the Council.

2.3 The aim of the Council’saffordable housing policy is toprovide suitable housing for thosewho can not afford to buy or rentaccommodation at market prices.The relevant policies in the UDPare policies H4 and H5, the fulltext of which is shown inAppendix 1.

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2.4 It is not possible for the UDP toaddress all the issues relating toaffordable housing. This SPGprovides more detailed guidance onhow the policies in the UDP will beimplemented and the process ofdetermining planning applications forhousing where an element ofaffordable housing is involved.

3.0 DEFINITION OFAFFORDABLEHOUSING

3.1 The Council’s definition of affordablehousing is contained in the WakefieldUDP First Alteration (Adopted 17January 2003) - Volume 2 paragraph6.4.25 that states:

“The terms ‘affordable housing’ and‘affordable homes’ are used toencompass both low-cost marketand subsidised housing (irrespectiveof tenure, ownership - whetherexclusive or shared - or financialarrangements) that will be availableto people who cannot afford to rentor buy houses generally available onthe open market.”

The definition of affordable housingalso includes special needs housing.

3.2 Affordable housing needs to bedefined in terms of the relationshipbetween local income levels andhouse prices or rents for differenttypes and sizes of housing and bebased on up-to-date assessment ofhousing needs. This relationship isshown in the Housing NeedsStatement, which is updatedannually (see below.)

3.3 Affordable housing will include a widerange of housing subsidised tovarying degrees to keep prices andrents below market values. In thepast, subsidised housing has beenmainly provided by the Council andhousing associations. TheGovernment now intends that localauthorities secure an element ofsubsidy from developers to providehousing for those who are unable toaccess market housing.

4.0 ASSESSING THENEED FORAFFORDABLEHOUSING

AFFORDABILITY

4.1 The levels of house prices andincomes throughout the districtdetermine whether housing isaffordable. Prices vary considerablyacross the district, but are low bynational standards and are generallybelow regional levels.

4.2 The Housing Needs Surveycommissioned by the Council in2002 assesses the need foraffordable housing in the district. Itcompares house prices andincomes and assesses affordabilitydepending on the proportion ofhousehold income that is spent onhousing. It indicates that the issue ofaffordability is not confined tocommunities where house pricesare highest. Even in communitieswhere prices are low, building morehomes at or above the prices atwhich properties are alreadyavailable will not tackle the problemof affordability. People on lowerincomes will still be excluded fromthe housing market. In most cases itis not possible to build new dwellingsat prices and rents which can beafforded by these households.

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The Council’s affordable housingstrategy must, therefore, seek toprovide homes at below marketprices. The Housing Needs Surveyforms the basis for determining thenumber of affordable homes ofdifferent types and the level ofsubsidies that are required within theDistrict.

SCALE OF NEED

4.3 The Housing Needs Statement,which is updated annually byHousing Services and forms part ofthe Council’s Housing Strategy,identifies the District’s annualadditional affordable housingrequirement. The annual review willensure that the delivery of affordablehousing is in accordance with theDistrict’s specific requirements. TheStatement is based on the HousingNeeds Survey, referred to inparagraph 4.2 above and the latestupdate will apply when assessingaffordable housing need at the timeof determination of a planningapplication. The Housing NeedsStatement 2003-2004 is attached inAppendix 7 and annual updates willbe available on request from HousingServices.

TYPES OF DWELLING

4.4 The Council’s Housing NeedsStatement specifies the types ofdwellings in different tenures that willbe required in the District and insubdivisions of the district. TheCouncil will take account of the needfor different types of affordabledwelling in each part of the District,as indicated in the Housing NeedsStatement, when consideringplanning applications for newhousing.

4.5 While the location and layout ofresidential development are planningmatters, the internal arrangementsand construction of dwellings areregulated by Building Control.Revisions to Part M of the BuildingRegulations, relating to access andfacilities for disabled people, cameinto force in 1999. The requirementsare designed to make it reasonablysafe and convenient for disabledpeople to visit new dwellings and touse the principal storey. Theprovisions enable occupants to copebetter with reducing mobility and to‘stay put’ longer in their own homes,although not necessarily to facilitatefully independent living for alldisabled people.

4.6 The Council recognises that somepeople rely on wheelchairs formobility all or most of the time andrequire specially designed dwellings.Some of this need can be met byadapting existing properties andproviding sheltered accommodation.However, there is a need for anumber of dwellings designed tomobility and wheelchair standards,which will need to be met throughnew building. UDP Policy H16 andthe supporting text outline theCouncil’s requirements forwheelchair standard dwellings andthe Council’s preference is thatdwellings designed for wheelchairuse should be to HousingCorporation design standards.

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5.0 MEETING THE NEEDFOR AFFORDABLEHOUSING

EXISTING SUPPLY OFAFFORDABLE DWELLINGS

5.1 The largest supply of affordabledwellings in the district is provided bystock built by the Council, themajority of which are houses. Inaddition, Registered SocialLandlords (RSLs) manage a furthersupply, most of which are 1-2bedroom flats and houses. The newbuilding programmes of RSLs,mainly housing associations, providethe main additions to the supply ofaffordable housing. Based on knowndevelopment programmes, the scaleof building seems unlikely toincrease in the near future.

5.2 It is clear that the scale of need isunlikely to be met from future buildingprogrammes of RSLs and theCouncil. Therefore, in areas of needthe Council will require an element ofaffordable housing in suitable privatesector housing developments.

SITE SIZE AND LOCATION

A) UDP SITES

5.3 The Housing Annex in UDP volume 2lists those sites allocated for housingin the Plan where the Councilconsiders that an element ofaffordable housing should beprovided at the time the UDP wasprepared. The number of newaffordable houses is not specifiedbut will be the subject of negotiationwith developers at the time aplanning application is made takinginto account the latest HousingNeeds Statement and the totalnumber of houses proposed for thewhole development. The allocatedsites are distributed across theDistrict and the majority are over 1hectare in size.

5.4 For those sites allocated for housingin the Plan which were not expresslyassessed as requiring affordablehomes when the UDP was prepared,the Council will make a furtherassessment of the need foraffordable housing as and whenplanning applications are received.This will depend on the needs of thearea in which the site is located asspecified in the Housing NeedsStatement.

B) WINDFALL SITES

5.5 Paragraph 6.4.29 of UDP volume 2notes that, when planningapplications are submitted forsuitable windfall sites in areas wherethere is evidence of need, theCouncil will seek to achieveaffordable housing by applying UDPpolicy H4.

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5.6 UDP policy H4 sets out the criteria tobe taken into account whenassessing the suitability of sites foraccommodating affordable housing.The full text of this policy is containedin Appendix 1.

5.7 As a starting point, affordablehousing will be required on sites thatmeet one of the following criteria:

i. Housing developments of 25 or moredwellings or residential sites of 1hectare or more, irrespective of thenumber of dwellings;

ii. In settlements of fewer than 3000people, where the proposeddevelopment is on a site of 0.5hectares or more or for 15 or moredwellings;

iii. Smaller sites which form part of alarger area of developable land,where there may be an identifiedneed for affordable housing.

If new minimum threshold levels areintroduced for the provision ofaffordable housing, the Council willadopt these in line with the prevailingguidance.

When assessing the suitability of asite for affordable housing theCouncil will take into accountlocational and site constraints. Theissue of abnormal developmentcosts is considered below(paragraphs 5.15 - 16).

5.8 The site area is the grossdevelopable area including roads andopen space provided as part of thedevelopment. Where large sites aresubdivided for phased release, soreducing the area of individual partsbelow the relevant threshold, theCouncil will seek proportionateprovision on the basis of the largersite. Appendix 2 lists the settlementsof fewer than 3,000 people to whichpoint ii) of the criteria will apply.Affordable housing provision is notprecluded on sites falling belowthese thresholds and is encouragedwhere feasible and appropriate.

5.9 Location is an importantconsideration of site suitability. TheCouncil is keen to promote mixedand inclusive communities and doesnot seek affordable housing merelyin areas of existing public sectorhousing. Sites for affordable housingshould be reasonably close to localservices and facilities (e.g. primaryschools, shops and communityfacilities) and should have goodaccess to public transport. Mostsites granted planning permission forhousing development are expectedto fulfil this requirement since theywill need to have satisfied UDPpolicy H6 which includes criteriagoverning the location of newhousing.

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ASSESSING THE AMOUNT ANDTYPE OF AFFORDABLEHOUSING ON NEW SITES

5.10 The Council will seek to create a mixof affordable housing on adevelopment and strive to achievemixed and balanced communities;however the overriding considerationwill be to achieve affordable housingschemes which make a reasonablecontribution to meeting the housingneeds of the areas in which they arelocated.

5.11 The Housing Needs Statementoutlines the general requirements foraffordable housing in various parts ofthe district. Decisions about theamount and type of affordable housingto be provided on individual sites willbe a matter for discussion andagreement amongst the partiesconcerned, taking account of a rangeof material factors.

5.12 There can be no mathematicalformula for attributing weight todifferent factors when assessing theappropriate provision of affordablehousing on a site. However,benchmarks can be set which will helpdevelopers who wish to know inadvance what the financialimplications of providing affordablehousing will be.

5.13 UDP volume 2 paragraph 6.4.29states that the Council will negotiateto achieve between 15% and 25% ofthe total number of proposeddwellings in a development asaffordable, unless need could be metby a smaller proportion, in whichcase the lower figure would be thetarget. The target percentage willbe updated by the annualHousing Needs Statement (seeAppendix 7) to consistently reflectthe identified affordable housingneed. The figure quoted in theHousing Needs Statement willtherefore be used as the basis foraffordable housing provision.Four factors are listed which will betaken into account in thenegotiations. These are:

i. the scale and nature of housing needin the area (as identified by theHousing Needs Survey and theAnnual Housing Needs Statement),

ii. the potential supply of affordablehousing on other sites in the locality,

iii. the suitability of the locality in termsof proximity to services, amenitiesand public transport,

iv. the cost of developing a particularsite,

v. the need to also contribute to social,community and sporting facilities thatwill directly serve the development.

5.14 The first and third of these factorshave been considered above insection 4 and paragraph 5.9. Underitem ii) the likelihood of housing needin an area being met from othersources includes taking account ofRSLs’ development programmesand the potential of other knownprivate housing developments in thearea to deliver affordable housing.

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ABNORMAL COSTS

5.15 The Council is anxious not tojeopardise the viability of housingschemes by seeking too high aproportion of affordable housing but itis also mindful that when assessingthe appropriate affordable housingprovision allowance should onlymade for abnormal developmentcosts. The Council will assume thatany abnormal costs associated withdeveloping a particular site havenormally been taken into accountwhen land has been purchased andtherefore allowance will usually onlybe made where applicants candemonstrate genuine, post-purchaseabnormal costs. However, theremay be a case for reducing therequirement for affordable housingafter taking account of exceptionalsite development costs. The issueis referred to in UDP volume 2paragraph 6.4.30 where some of thepossible types of cost to be takeninto account are described. It is notan exhaustive list of abnormal costsbecause much will depend on localcircumstances. Each developmentproposal will need to be consideredindividually.

5.16 The Council will normally expect theapplicant to provide details ofabnormal costs, gross land valuesand marketing information so thatofficers (with assistance from otherprofessionals where appropriate)may judge how realistic they are.

MARKET CONDITIONS

5.17 Adverse market conditions mayadditionally be a reason for reducingthe proportion of affordable dwellings.Where market conditions are poor,profitability on new dwellings is lowand private sector house building is ata low level, the provision may bereduced to secure wider regenerationobjectives. The Council will expect thedeveloper to supply supportinginformation to indicate such marketconditions.

LEVEL OF SUBSIDY

5.18 The Council’s preferred method ofachieving affordable housing is inconjunction with a RSL. In order toensure that the dwellings are capableof being let or sold at a price which isaffordable to those groups of peoplewho need them, then an agreed levelof subsidy needs to be applied. Thelevel of subsidy required in theaffordable housing component of adevelopment will vary depending uponthe type of housing to be provided e.g.housing for rent may require a greatersubsidy per dwelling than low costhousing for sale. The Council’sHousing Strategy 2004-2008 confirmsthat at present people on the averageincome in Wakefield district can afforda mortgage upto £60,000. Theaverage house price in the district is atpresent £93,000. For units for sale adiscount of approximately 36% wouldbe required to make homes affordable.The discount for rent may be evenhigher than this figure. A benchmarksubsidy of 25% represents a balancebetween that required to make homesaffordable and that which developerswill be prepared to pay. Future reviewsof this guidance will re-assess thelevel of subsidy if this is required tomeet the district’s affordable housingneed.

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5.19

housing being provided and the tenure.

, Council

negotiations on viability, described above in paragraphs 5.12-17). This would

towards affordable housing, for this site.

exceed this maximum.

A worked example of this calculation is given in Appendix 3.

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6.0 DELIVERINGAFFORDABLEHOUSING

6.1 The responsibility for implementingand monitoring the Council’splanning policies on affordablehousing rests with Regeneration &Housing Services. As noted above inparagraph 5.2, where there is a needfor affordable housing the Councilwill require an element of affordablehousing in suitable private sectorhousing developments. Theappropriate scale of provision will beassessed as part of the process ofdetermining a planning application.

PRE-APPLICATIONARRANGEMENTS

6.2 The Council encourages pre-application discussions andmeetings between a developer andthe Council. They serve to clarify theprocedure for all parties involved,give more certainty to developers onwhat level of affordable housing maybe required and can reduce delays indealing with planning applicationsonce submitted. Discussions shouldbe led by the Council’s DevelopmentControl service in liaison withHousing Services. The purpose ofthese discussions will be to highlightthe policy and procedures, which theCouncil has in place regardingaffordable housing, and to makeapproximate assumptions regardingaffordable housing provision.Detailed negotiations should not andwill not take place at pre-applicationstage. Only once the Council hasreceived a planning application willsuch negotiations begin.

PROCESSING PLANNINGAPPLICATIONS

6.3 In most cases it will be theDevelopment Control case officerdealing with a particular planningapplication who will be responsiblefor taking a lead role in ensuring thatthe appropriate affordable housingpolicies are complied with and theappropriate level of provision issecured. Development Control willconsult Housing Services about theneed for affordable housing on allplanning applications which meet thecriteria set out in UDP Policy H4.Housing Services will provide anassessment of the need and thenumber and type of dwellingsrequired. Development Control willthen negotiate with the developer tosecure appropriate provision.

6.4 The procedure for dealing withplanning applications which includean element of affordable housing, isoutlined in the flowchart in Appendix4. Conditions and planningagreements will be used to securethe provision of affordable housingas appropriate. These are discussedin more detail in later sections.

OPTIONS FOR DELIVERINGAFFORDABLE HOUSING

6.5 The Council’s preferred method fordelivering affordable housing is for aRegistered Social Landlord (RSL) tobe involved. However, there are anumber of alternative methods whichthe developer and the Council mayfind acceptable and brief details ofthese can be found in Appendix 5.This list is not prescriptive and theCouncil will consider alternativesolutions providing other elements ofthis guidance can be met.

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6.6 The Council will be flexible in itsapproach and will attempt toaccommodate realisticarrangements presented bydevelopers to secure affordablehousing provided that thearrangements give an assurance ofaffordability being maintained in thelong term. However, it will expectdevelopers to be willing to negotiatewith the Council and other partnersto achieve a scheme which meetsidentified needs.

WORKING WITH AN RSL

6.7 This approach is the Council’spreferred method for deliveringaffordable housing and every effortshould be made to involve an RSLwhere possible. RSLs can act aspartners in schemes and eitheracquire completed dwellings or landor become a managing agent.

6.8 The Council will not specify whichpartners developers should workwith to deliver affordable housing butit encourages them to work withRSLs who are already active in theDistrict and where possible they willbe encouraged to work with localproviders through the HousingAssociation Partnership. The Councilmay suggest specific partners ifrequested to do so by a developer oran RSL with particular expertise ifspecially designed housing isrequired.

6.9 Arrangements for securing theinvolvement of an RSL in theprovision of affordable housing on adevelopment may be specified in aplanning obligation under Section106 of the Town and CountryPlanning Act 1990.

6.10 The sale of the dwellings to an RSLshould normally be arranged toensure that the association uses itsown reserves or private financerather than Housing Corporationgrant since the aim is to provideadditional affordable homes over andabove those provided throughmainstream budgets.

7.0 SECURINGAFFORDABLEHOUSING

7.1 Government guidance stresses theimportance of ensuring that, once adeveloper has agreed to provide anelement of affordable housing as partof his proposal, the right dwellingsare built and remain affordable inperpetuity. The Council’s proposalsfor securing affordable housing areset out in UDP volume 2 paragraphs6.4.31 - 6.4.37.

7.2 There are a number of mechanismswhich the Council will normally useto ensure that an element ofaffordable housing agreed throughthe granting of a planning permissionis in fact provided as part of theensuing development and remainsaffordable for future occupiers.These include:

covenants on the sale of theCouncil’s own land;

conditions attached to a planningpermission; planning obligationsunder Section 106 of the Town andCountry Planning Act 1990.

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USE OF CONDITIONS ORLEGAL AGREEMENTS

7.3 Outline planning applications cannormally be approved subject to acondition requiring the submission ofan affordable housing scheme whena reserved matters or full applicationis submitted. At the outline stage,therefore, it will normally only benecessary for the Council to come toa view as to whether or not theprovision of affordable housing isappropriate or whether a commutedsum may be required. Whereaffordable housing is required theCouncil will seek to secure aproportion of the site/future numberof dwellings by condition Details ofthe level and nature of provision willbe finalised at a later stage.However, where site layouts areprovided and numbers ofdwellings are known, affordablehousing should be secured, byfollowing the procedures set out inthis document.

7.4 Negotiations to agree the appropriatelevel of provision and arrangementsfor securing delivery and futureaffordability will usually be finalisedwhen full or reserved mattersapplications are submitted.Agreement will usually be secured bymeans of a planning obligation underSection 106 of the Town and CountryPlanning Act 1990. The items to beincluded in the agreement willdepend on the nature of the schemewhich has been negotiated betweenthe developer, the Council and anyother partner, but may include:

the amount and type of affordablehousing to be provided;

arrangements for securing theinvolvement of an RSL;

arrangements to ensure that thenecessary contract with the RSLhas been made by a specified stagein the development;

the stage of the development bywhich the agreed housing is to bebuilt and transferred to an RSL;

any charges the Council may makefor checking affordability andeligibility criteria;

the circumstances under which theCouncil may charge the developerto cover the cost of monitoringcompliance;

clauses requiring default off-sitecommuted sum payment, where on-site arrangements fail to bedelivered;

clauses requiring a developer tosign contracts with a specified RSLwithin a specified period of timefollowing planning permission beinggranted.

More information on Section 106agreements can be found inAppendix 6

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8.4 UDP volume 2 paragraph 6.4.37 setsout the criteria which the Council willapply to identify preferred occupants.These are repeated below togetherwith more detail of the standardswhich will be applied:

household income below a set levelbased on the New Earnings Survey- household income in the lowestquartile of average regionalearnings,

households living in overcrowded orunsatisfactory accommodation -households living at greater than 1person per habitable room(excluding bathrooms, toilets andsmall kitchens) or lacking basicamenities (exclusive use of bath/shower and inside WC),

households living in the district for aspecified number of years - living indistrict for 2 years or more,

households with a member workingor being educated in the district,

households with close relatives (e.g.grandparents, parents, children,grandchildren) living in the district,

households qualifying for the type ofhousing provided by virtue of theirage - households with all occupantsage 55 or over.

8.0 CONTROLLINGOCCUPANCY

8.1 It is necessary for the Council toensure that the affordable dwellingsprovided are occupied byhouseholds who are in need of thistype of accommodation, both initiallyand in the future. Planning conditionsand obligations may be used tocontrol occupancy.

8.2 An effective means of controllingoccupancy is for an RSL, usually ahousing association, to manage theaffordable housing. This approach isendorsed by the Council and, asnoted above, it is the preferredmethod for achieving the provision ofaffordable housing. In thesecircumstances it will not normally benecessary to impose additionalcontrols on occupancy throughplanning conditions or obligations.

8.3 Where an RSL is not involved inmanaging the housing the Council’spreferred approach will be to useplanning conditions and obligations,as appropriate, to controloccupancy. The Council mayrequest a developer to enter into aplanning obligation wherebyaffordable houses will be madeavailable to a person or persons whohave reasonably demonstrated tothe Council a priority need foraffordable housing and his or herneed to live within the locality of thedevelopment.

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8.5 Deciding which criteria should beemployed will depend on thecircumstances of each housingdevelopment, including the nature oflocal housing need. Responsibility forassessing the suitability ofoccupants will rest with the Council’sHousing Services. Arrangements willbe specified in a Section 106agreement which will include detailsof any charges to be made forproviding this service to a developer.

8.6 The purpose of occupancy control isto ensure that affordable dwellingsare allocated to households whogenuinely need it. However, it isrecognised that it is undesirable tokeep property unoccupied for longperiods. The Council will require thata ‘cascade’ approach be applied sothat if a property remains empty formore than a set period of time thecriteria of eligibility should bewidened. It is proposed that ifproperties remain vacant for morethan 2 months after completion orfollowing vacation by previousresidents, then the eligibility criteriawill be widened so that only theincome criteria should apply.

9.0 COMMUTED SUMS

9.1 In accordance with governmentguidance the Council prefers to seeaffordable housing provided as part ofprivate sector developments.However, there may be instanceswhere the Council and the developerboth agree that, instead of providingaffordable housing on the site itself, itis preferable for the developer to pay asum of money towards the provision ofaffordable housing (commuted sum).Such sums may be used to provideaffordable housing on another sitewithin the District or as a contributiontowards off site refurbishment works,which would increase the range ofaffordable housing within the District.Provision on an alternative site shouldresult in the need for affordablehousing identified on the original sitebeing met. This type of arrangementmay be particularly appropriate whereit maximises the number of affordabledwellings provided or where it can beused to provide extra affordable homesto complement those already plannedon a scheme which is in the pipeline.

9.2 The sum to be paid will be based onthe proportion and type of affordabledwellings that would have beenexpected on the original site, and willbe calculated using the procedure setout above in paragraph 5.19.Developers will be expected to providesupporting information whenconfirming the market value ofproperties and this will need to beagreed with the Council’s PropertyServices section. If agreement cannotbe reached, developers will berequired to submit an independentvaluation from a suitably qualified firm/individual. In order to ensure that thisarrangement will actually result inaffordable housing which would nothave been provided otherwise, theagreed sum will be paid into adedicated holding account.

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9.3 The agreed sum may be paid beforethe issuing of a planning decisionnotice or at a specified point duringthe development. Details will bespecified in a Section 106 agreementthat should be one of two types.

The first states that the developerwill make an agreed contributiontowards the cost of providingaffordable housing on a differentsite, once contracts to provide theaffordable housing element on analternative site have been signed.

Alternatively an agreement caninclude a covenant which providesfor the developer to pay an agreedcommuted sum to the Council to beused to provide affordable housing.The monies received will be held bythe Council and will be repaid to thedeveloper if it has not been spent bya specified date.

9.4 Where appropriate, agreements willinclude a specified time forpayments to be made, for examplewhen the “nth” dwelling is completed,and may include provision for futurepayments to be index linked.

10.0 MONITORING OFAFFORDABLEHOUSINGPROVISION

10.1 Developers are expected to complyfully with the terms of any planningconditions and legal agreementsattached to a planning permission.Regeneration and Housing Servicesmonitor provision of affordablehousing. Where conditions are notcomplied with, or obligations nothonoured, the Council will takeappropriate steps to enforce them.

10.2 Where a commuted sum is specifiedthe Council will expect the developerto pay it to the Housing andRegeneration Finances Section atthe appropriate time, together withconfirmation of which planningapplication the sum relates to.Written confirmation of thistransaction should be sent to theCouncil’s Development Controlsection to avoid problems inmonitoring and enforcing theagreement. The Council will issue anaccount for payment once instructedby the relevant Development ControlOfficer. If there is a delay in payment,interest payments may benegotiated. As stated above, wherea commuted sum has not beenspent by a specified date it will bereturned to a developer.

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11.0 DESIGNCONSIDERATIONS

11.1 In order to meet the Government’saim, set out in PPG3, of creatingmixed and balanced communitiesoffering a choice of housing andavoiding the creation of large areas ofhousing with similar characteristics, itis expected that developers willintegrate market housing andaffordable housing within a singledevelopment. Whilst it may beacceptable to group affordabledwellings together to allow for propermanagement, in most cases it will bepreferable to spread them morewidely across a development.

11.2 The Council’s planning policies whichapply to housing developments ingeneral apply equally to affordablehousing. The design and materialsused for affordable dwellings shouldbe of the same quality andspecification as those in markethousing. Affordable dwellings shouldblend in and complement otherhousing in the development and thesurrounding area and should not bemarked out by being of poorer designand quality of finish than neighbouringmarket housing. Levels of privacy, carparking and open space shouldnormally comply with the standardsset out in the Council’s ResidentialDesign Guide and guidancecontained in paragraph 14 of Circular6/98 and paragraphs 59-62 of PPG3– Housing, for the types of dwellingbeing provided, unless reducedrequirements have been agreed forthe development as a whole.

11.3 In cases where specifically designeddwellings are to be provided, theCouncil will expect full details of suchdwellings to be submitted byapplicants as part of the planningapplication.

12.0 RURAL EXCEPTIONSITES

12.1 UDP volume 2, Policy H5 andparagraphs 6.4.39 and 6.4.40 set outthe Council’s proposals relating tothe provision of affordable housingon ‘exception’ sites in rural areas.

12.2 In some settlements in rural areasthe need for affordable housing mayjustify development taking place onland where it would not otherwise bepermitted. Exceptional permissionsare likely to be confined to ruralsettlements where new developmentis generally not acceptable and theopportunities for people to buyexisting affordable homes are few.Because of the wide spread ofsettlements throughout WakefieldDistrict where small scale housingdevelopments are acceptable undernormal housing polices, the need forthis type of site is limited. Appendix 1lists the settlements where exceptionsites may be permitted. They aresome of the settlements in the GreenBelt where limited residential infillingis acceptable under UDP policyOL16. In these settlements, the needfor affordable housing may constitutevery special circumstances whichoutweigh the general presumptionagainst inappropriate development inthe Green Belt. The need foraffordable dwellings should beestablished by means of a localneeds survey, usually supported bythe Parish Council, which has beenagreed with Wakefield Council. TheCouncil would normally require thedetails of any such survey toaccompany relevant planningapplications.

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12.3 The aim of exception sites is toprovide affordable homes for localpeople and it will normally benecessary to incorporate eligibilitycriteria into planning conditions orobligations limiting occupancy topeople living or employed in thesettlement. Control on occupancywill normally be necessary evenwhere an RSL is involved inmanaging the dwellings. Thecascade approach referred to inparagraph 8.6 above will beemployed to ensure that propertiesremain occupied.

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Appendices

APPENDIX 1

UDP FIRST ALTERATIONPOLICIES ON AFFORDABLEHOUSING

H4 WHERE THERE IS ADEMONSTRATED LACK OFAFFORDABLE HOUSING TO MEETLOCAL NEEDS, THE COUNCIL WILLREQUIRE THE PROVISION OF ANELEMENT OF AFFORDABLEHOUSING IN HOUSING SCHEMESON SUITABLE SITES. THE NEEDFOR AFFORDABLE HOUSING WILLBE ONE OF THE MATERIALCONSIDERATIONS WHICH THECOUNCIL WILL TAKE INTOACCOUNT WHEN DETERMININGPLANNING APPLICATIONS FORRESIDENTIAL DEVELOPMENT.

THE FOLLOWING CRITERIA WILLBE TAKEN INTO ACCOUNT WHENDETERMINING APPROPRIATESCHEMES:

i) THE PROPOSED DEVELOPMENT ISON A SITE OF 1 HECTARE ORMORE OR FOR 25 OR MOREDWELLINGS;

ii) IN SETTLEMENTS OF FEWER THAN3,000 PEOPLE THE PROPOSEDDEVELOPMENT IS ON A SITE OF 0.5HECTARE OR MORE OR FOR 15OR MORE DWELLINGS;

iii) THE SITE IS CLOSE TO LOCALSERVICES AND FACILITIES ANDHAS ACCESS TO PUBLICTRANSPORT;

iv) WHETHER THERE ARE UNUSUALCOSTS ASSOCIATED WITH THEDEVELOPMENT.

THE COUNCIL WILL SEEK TOENSURE THAT:

v) THE AFFORDABLE HOUSINGPROVIDED CATERS FOR THE TYPEOF NEED IDENTIFIED IN ITSHOUSING NEEDS SURVEY ANDHOUSING INVESTMENT STRATEGYAND;

vi) SECURE ARRANGEMENTS ARE INPLACE TO RETAIN THE BENEFITSOF AFFORDABILITY FOR INITIALAND SUBSEQUENT OCCUPIERS.

LOW COST HOUSING INRURAL AREAS

H5 IN EXCEPTIONAL CASES IN RURALAREAS SITES MAY BE RELEASEDFOR PROVEN LOCAL NEEDS AS ANEXCEPTION TO NORMAL POLICIESRELATING TO GENERAL HOUSINGPROVISION.

Policy H5 is likely to be confined to thesmall rural settlements in the GreenBelt where limited residential infilling isacceptable under Policy OL16, asfollows:

East Hardwick WarmfieldMidgley North ElmsallWentbridge WragbyOld Snydale

For the full Reasoned Justification forthe policies on affordable housingplease see UDP volume 2 paragraphs6.4.23 to 6.4.41.

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APPENDIX 2

SETTLEMENTS OF FEWERTHAN 3000 POPULATIONWHERE UDP POLICY H4(II)APPLIES

AcktonBadsworthDarringtonHavercroftHigh AckworthKirkhamgateKirkthorpeLow AckworthMiddlestownNethertonNorth FeatherstoneNottonRyhillSharlstonSouth HiendleyStreethouseThorpe AudlinWest BrettonWoolley

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APPENDIX 3

EXAMPLE OF SUBSIDYCALCULATION FOR LOWCOST HOUSING FOR SALE

In this example a developer has applied forpermission to develop a site with 100dwellings. The site is above the thresholdfor affordable housing provision and thedeveloper has been required to provide25% of the dwellings as affordable. Thenumber of affordable dwellings to beprovided is 25% of 100, i.e. 25. It has beenagreed that this should comprise 10 threebedroom dwellings and 15 two bedroomdwellings.

In this case the open market value of a 2bedroom property is £80,000 and a 3bedroom property is £100,000. Thesevaluations have been agreed by all partiesin writing. The open market value relates tothe actual price of equivalent dwellings tobe built as part of the development.

It has been agreed that the dwellings willbe provided at 25% discount of openmarket value. The total subsidy is workedout as follows:

Subsidy element on the 2 bedroomproperties = £80,000 X 25% = £20,000Subsidy element on the 3 bedroomproperties = £100,000 X 25% = £25,000

The subsidy amounts are then multipliedby the number of affordable units requiredto give a total subsidy amount or total costfigure, as follows:

£20,000 X 15 (2 bedroom units)= £300,000

£25,000 X 10 (3 bedroom units)= £250,000

= £550,000

This would be the maximum contributionthe developer would be expected to paytowards affordable housing, for this site.Following these calculations, if a greatersubsidy would be required to make thedwellings affordable, the total amountcalculated above would be apportioned tofewer units to ensure the developer’scontributions do not exceed thismaximum.

Note:

This figure would be the starting point ofnegotiations and may be adjusted to takeaccount of a number of things including;

other planning obligations relating tothe site, eg public open space,education requirements, highwayissues

adverse market conditions

costs which were not reasonablyforeseeable at the time of siteacquisition.

This list is not, and cannot be, exhaustive.Each planning application will beconsidered individually.

Application within thresholds for affordable

housing?(See SPG for guidance).

Council determine if requirement for

affordable housing.

Wherever possible, developers contact

Council (and potential Registered Social Landlords) for pre-

application discussions.

Is site boundary part of larger development site within the thresholds for

affordable housing?

Application received by the Council.

YES

YES

Is application on allocated housing site with requirement for

affordable housing in the Wakefield UDP?

No Is application for Rural Exception Site?

No

No requirement for affordable housing.

NO

NO

YES YES

Is application outline?

YES

Does application include details of layout?

YES

Is commuted sum required for provision of affordable housing on

site at this stage?

No YES

Council calculate commuted sum and

agree terms with applicant.

Negotiations begin with Developer, Council and RSL (if known)

NO YES

Is affordable housing to be provided offsite.

YES

Condition required to ensure provision of

affordable housing at reserved matters stage.

Council determine if conditions or legal

agreement required or both and agree details with all other parties.

NO

NO

Legal Agreement prepared and agreed

with developer.

Decision Notice issued to developer, subject to

conditions/legal agreement.

Conditions/Legal Agreements subject to

Monitoring/Enforcemant by Council.

APPENDIX 4

Planning Applications and Affordable Housing Procedure

Flowchart showing procedure for dealing with planning applications involving an element of Affordable Housing

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Shared Ownership Housing

(Without Social Housing Grant)

Under this arrangement a developer buildsthe negotiated number of affordablehouses and sells them to buyersnominated by an RSL, at an agreedpercentage of the market price. Theremaining percentage of the value of theproperty is transferred free of charge to theRSL who retains this equity in the marketvalue of the property. This acts as amechanism for keeping the propertyaffordable on resale. A Section 106agreement will normally be required toensure that an RSL takes over the retainedequity and acts as agent to guarantee thatthe discount on the property value enduresfor future sales. The agreement will alsoensure that preference is given topurchasers who fulfil the occupancycriteria in paragraph 8.4.

APPENDIX 5

ADDITIONAL OPTIONS FOR

DELIVERING AFFORDABLE

HOUSING

Donation of Land

Where there is a clear prospect of an RSLbuilding an affordable housingdevelopment, it may be possible for adeveloper to meet his obligation to provideaffordable housing by donating part of hisdevelopment site to the RSL. However,this will only be possible where it isacceptable to the RSL, where a firmproposal or scheme is in place and wherethe necessary funding can be secured, inorder to ensure that the affordable housingis in fact provided. Land will normally beprovided by the developer free of charge,the area being determined using themethod outlined above in paragraph 5.19,as if dwellings were to be built on the site.

When the Council is selling some of itsown land holdings to a private housingdeveloper a covenant may be attached tothe sale requiring the developer to dedicatea specified part of the site to an RSL forthe construction of affordable dwellings.

Homebuy (“Do-it-Yourself” Shared

Ownership)

This type of scheme allows existingCouncil and RSL tenants to makearrangements with an RSL to buy aproperty on the open market on a sharedequity basis. The arrangements are similarto those under Shared Ownership(Without Social Housing Grant). Occupiershave the right to “staircase” i.e. increase ordecrease their share of the equity.

Where the property is new build then alegal agreement would normally berequired to ensure that the property is soldto both a nominated RSL and the thirdparty at a discounted open market valueand that nomination rights are retained bythe Council or RSL for future purchases ofthe property.

Build for Private Renting

Here the developer agrees to build theaffordable dwellings and lets them privatelyfor a specified minimum period of time.The management of the dwellings is thedeveloper’s responsibility. The Council willrequire developers to enter into obligationsunder Section 106 to ensure that the rentscharged remain affordable and that thedwellings are let to tenants who havedemonstrated their need for affordablehousing to the Council.

In all options for delivering affordablehousing without the involvement of an RSLthe Council may make a charge to coverthe cost of checking affordability andeligibility criteria.

Conventional Shared Ownership

In this type of scheme a developer agreesto build the negotiated number ofaffordable houses on a design and buildbasis and to sell them to an RSL at anagreed percentage discount of marketvalue. The RSL shares ownership withoccupiers whom it nominates throughselling equity shares in the dwellings andcharges a rent for occupation on the equityit retains. Sales of equity are usually atmarket value but the affordability isprovided by lower than market rents, madepossible by the discounted price at whichproperties are purchased from thedeveloper. Usually under conventionalshared ownership social housing grant isused by the RSL to fund its share of equity.

Normally, occupiers have the right to“staircase” to full ownership of theproperty. However, for this type ofarrangement to be an acceptable meansof providing affordable housing forsubsequent owners it is necessary for theRSL to retain an element of ownership.

A legal agreement will normally be requiredto ensure that the affordable units are soldto an RSL at the discounted open marketvalue.

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3) A third option is to use a Section 106Agreement to

(a) ensure that for a substantial periodthe properties are occupied by those inlower income groups or other prioritycategories of occupier and to

(b) ensure that for a substantial periodproperties are available for sale or rentin the market at a price significantlybelow the open market capital value

Section 106 agreements shouldalways be used where a commutedsum is to be secured.

APPENDIX 6

NOTE ON SECTION 106

AGREEMENTS

There are several options as to howaffordable housing can be dealt with usinga Section 106 agreement.

1) The first option is a Section 106Agreement to require the developer tooffer the properties to a registeredsocial landlord at a discounted valueand to satisfy the Council thatnegotiations for transfer to a registeredsocial landlord have been fully pursuedfor a stated time before the propertiescan be released on the open market.The Council will have the right tonominate a further HousingAssociation should the initialnegotiations not be productive. TheAgreement will also imposerestrictions on initial and futureoccupation of the properties andrequire the properties to be completedbefore a stated number of otherdwellings have been occupied. TheUDP says that this option is thepreferred mechanism for ensuringaffordability in perpetuity.

A variation on the above option is anAgreement with a Housing Associationimposing local occupation and qualificationrestrictions for an “exceptions” site in theGreen Belt.

2) The second option is a Section 106Agreement which requires thedeveloper to pay a commuted sum inlieu of provision by the developer ofaffordable housing on the developmentsite. This can include a contribution tooff site refurbishment works.

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APPENDIX 7

HOUSING NEEDSSTATEMENT2004/05

HOUSING NEEDS ST ATEMENT(SEE INSIDE POCKET ONBACK COVER)

The Housing Needs Statement is updatedannually by Regeneration and HousingServices. Please contact Bob Hall in theCouncil’s Housing section to ensure youhave the latest version on 01924 727159.