Richmond Affordable Housing Policy

Richmond’s local plan was adopted in July 2018, it states that it “sets out the policies and guidance for the development of the Borough”.

Policy LP 36 of the Local Plan sets out the affordable housing expectations, this can be seen below:

Policy LP 36 Affordable Housing A. The Council expects: a. 50% of all housing units will be affordable housing, this 50% will comprise a tenure mix of 40% of the affordable housing for rent and 10% of the affordable intermediate housing. b. the affordable housing mix should reflect the need for larger rented family units and the Council's guidance on tenure and affordability, based on engagement with a Registered Provider to maximise delivery. Where on-site provision is required, an application should be accompanied by evidence of meaningful discussions with a Registered Provider which have informed the proposed tenure, size of units and design to address local priorities and explored funding opportunities. B. A contribution towards affordable housing will be expected on all housing sites. The following requirements apply: a. on all former employment sites at least 50% on-site provision. Where possible, a greater proportion than 50% affordable housing on individual sites should be achieved. b. on all other sites capable of ten or more units gross 50% on-site provision. Where possible, a greater proportion than 50% affordable housing on individual sites should be achieved. c. on sites below the threshold of 'capable of ten or more units gross', a financial contribution to the Affordable Housing Fund commensurate with the scale of development, in line with the sliding scales set out below and in the Affordable Housing SPD. | No. of units proposed (gross) | % Affordable Housing | | |---|---|---| | | For conversions and reversions (where there is no loss of former employment floorspace. | For new build development or redevelopment (where there is no loss of former employment floorspace) | For any units replacing employment floorspace | | 9 units | 36% | 45% | 90% | | 8 units | 32% | 40% | 80% | | 7 units | 28% | 35% | 70% | | 6 units | 24% | 30% | 60% | | 5 units | 20% | 25% | 50% | | 4 units | 16% | 20% | 40% | | 3 units | 12% | 15% | 30% | | 2 units | 8% | 10% | 20% | | 1 unit | 4% | 5% | 10% | C. In accordance with A and B, the Council will seek the maximum reasonable amount of affordable housing when negotiating on individual private residential and mixed-use schemes. The Council will have regard to: a. economic viability; b. individual site costs; c. the availability of public subsidy; and d. the overall mix of uses and other planning benefits. D. Where a reduction to an affordable housing contribution is sought from the requirements in A and B on economic viability grounds, developers should provide a development appraisal to demonstrate that schemes are maximising affordable housing. The developer will be required to underwrite the costs of a Council commissioned economic viability assessment. The Council will rigorously evaluate such appraisals and:

a. assess if the maximum reasonable amount of affordable housing is based on delivering the appropriate tenure, unit sizes and types that address local needs. b. consider whether it is necessary to secure provision for re-appraising the viability of a scheme prior to implementation to secure contingent obligations. c. in most circumstances the Existing Use Value plus a premium (EUV+) approach to assessing benchmark land value in development appraisals and viability assessments should form the primary basis for determining the benchmark land value.

As seen above, there are different requirements dependant on the number of units proposed.

For developments of 10+ dwellings, the expectation is that 50% will be provided as on-site affordable housing; whereas developments >10 units are expected to give a financial contribution instead. The table above in Policy LP 36 shows what equivalent % contribution is required from different sized developments.

This policy applies to all types of development, from new-build housing to changes in use of residential schemes; and perhaps most importantly and uncommonly, to reversions as well – i.e. from 2 flats to 1 house. While economically seeking affordable housing contributions is rarely viable on reversions, the council unfortunately continue to enforce this policy subject to viability.

S106 Management have completed many successful viability challenges in Richmond, both during applications and appeals.

Therefore, we advise that a site specific viability assessment is completed on all developments of 1 or more units in Richmond, and particularly for any schemes planning to convert or revert 2 flats into 1 house.

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Previous Work in Richmond

Proposed development = Convert building which is now 3 individual apartments back into its original state: a 5-bedroom family dwelling. In total the conversion will offer 259.5m2 of residential accommodation, with no additional space being created.

Policy Implications/Requirements = LP36 of the Richmond Local Plan suggests that developments of less than 10 units will provide a financial contribution, the % is dependant on the number of units being created.

Expectation on Affordable Housing = Policy LP36 suggests that the Council will seek a financial contribution equivalent to 4%. The Council also requested a further contribution of £41,000.

Result = The site was found to be unviable and therefore exempt from an affordable housing contribution and other payments.

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Richmond Affordable Housing Policy

Previous Work in Richmond

Rising Build Costs Cause Unviable Developments - Act Now!

Dacorum Draft Interim Affordable Housing SPD

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