Exemplar Projects - Planning for Affordable Housing

APPEAL SUCCESS FOR PRIVATE SECTOR AFFORDABLE HOUSING PROVIDER

Tetlow King Planning have been successful in obtaining planning permission at appeal for a rural exception scheme of 22 dwellings at Mount Hawke in Carrick District, Cornwall.

The appeal was submitted by THF Ltd who have developed a new, innovative model for the provision of intermediate affordable housing without any public grant subsidy. The scheme comprises of 17 shared ownership properties with prices for 2 bedroomed properties being a maximum of £111,000 or £123,000, for 3 bedroomed properties £140,000 and the 4 bedroomed house £160,000. Five of the units are also for social rented purposes. The sale prices reflect the developer costs of building the units with the only profit element being levied through an additional annual rental charge to each owner of £1,040. The sale prices being a substantial discount on open market values. The submitted Planning Obligation ensures that the initial sales price discount would be retained on subsequent sales and that occupation would be limited to eligible local households whose needs are not met by the market.

The Council had contested the proposed development principally on the ground that the units would not be affordable contrary to the sale price thresholds for intermediate affordable housing contained in the DPD Balancing Housing Markets that had recently been found to be sound following a Public Examination.

The Inspector accepted there was a growing need for affordable housing including intermediate housing at the District and more local levels. However, he noted that the appeal proposal would conflict with the price threshold requirements of the DPD albeit not Policy BHM5 on rural exception schemes which does not include price thresholds for affordability. He then went to note that the updated price thresholds tabled by the Council during the Inquiry were not accurate and if they were based on Carrick mean wages the thresholds would be significantly higher. Noting the Council had applied a degree of flexibility with the figures he considered a degree of flexibility in the application of the new thresholds is required to allow individual schemes to be considered on their merits.

He went on to assess the benefits which would accrue from permitting the scheme. This included that this proposal is the type of scheme encouraged in ‘Delivering Affordable Housing’ that complements PPS3. The capped prices of the proposed development would be substantially lower, and more affordable, than local open market prices. It could make an early contribution to the supply of housing than can be provided by the open market for which there is a clear need.

He was satisfied that even from the Council’s home seekers register, 13 households indicate earnings that would be likely to be adequate to fund a mortgage sufficient to buy one of the dwellings nor would a significant proportion of them have any difficulty with also paying the additional annual rental payment. In addition, THF had also submitted evidence on prospective purchasers who could afford to buy the properties. The Inspector referred to the benefits of savings and wider family support mechanisms that were referred to at the Inquiry by a local resident which can assist entry into the intermediate housing market. Overall he was satisfied the cost of the dwellings would be low enough for them to be affordable by a significant number of households in Mount Hawke and the nearby surrounding area. The scheme would also meet a need recognised in the West Cornwall Housing Market Area Study.

The Inspector was entirely satisfied with the details in the submitted Unilateral Undertaking which would ensure the dwellings remained affordable in the future. He was also satisfied with the cascade arrangements which allow for take up of the dwellings by eligible households from nearby parishes in appropriate circumstances which include one parish outside Carrick District.

He therefore concluded:

“On balance, I consider the overall benefits of the proposal in providing intermediate affordable housing and its accord with the aims of PPS3 in this respect, albeit not for households with the lowest incomes in the area, outweighs its conflict with the price thresholds identified by the Council pursuant to the Balancing Housing Markets DPD … I conclude ….. that the proposed dwellings would be affordable for a sufficient number of households in the local context now and in the future to ensure the scheme would accord with national and local policies for the use of rural exception sites and justify granting permission. I also conclude that occupation of the dwellings would be appropriately limited to those eligible local households where housing needs are not met by the open market. The scheme would, therefore, accord with PPS3 and DPD Policy BHM5 in these respects and would serve the wider aims of Regional Planning Guidance for the South West and the Cornwall Structure Plan 2004 to promote the supply of affordable housing”.

Mark Auchincloss who gave expert evidence to the Inquiry on behalf of THF on housing needs and planning policy issues commented:

“This is a very important decision not only in a Cornish context but has considerably wider ramifications. The Inspector endorsed a new, innovative approach to the provision of intermediate affordable housing provided by a private company without any public funding. As the Inspector emphasised, such an initiative actually helps to release grant aid for additional housing to be spent elsewhere. It therefore will help to supplement provision from traditional sources such as RSL led schemes and help to provide high quality affordable housing to local people”.

Please direct any queries to Mark Auchincloss on 0117 9561916 in the first instance.

05/09/08

If you would like further details of this or any other cases please telephone us on 0117 956 1916 or e-mail all@tetlow-king.co.uk.

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