Affordable housing reduced to respect anticipated losses

A section 106 obligation relating to a planning permission for 67 dwellings in Lincolnshire which required that 35 per cent of the units should be affordable was varied to require the developers to provide only 25 per cent after taking into account likely build costs and the value of the houses. In this regard the inspector did not agree that a reduction to 15 per cent as requested by the appellants was appropriate.

In assessing the areas on which the council and appellants disagreed, the inspector started with an examination of the gross development value for the market housing. Different values were applied depending upon the size and nature of the properties proposed, a large proportion of which would be bungalows. The inspector decided that values put forward by the appellants were likely to be representative for all house types other than the bungalows, with estimates provided by the District Valuer being preferred.

The type of affordable housing was also a relevant consideration with the appellants proposing a 50:50 split between affordable rent and shared equity. A social housing provider had provided an estimate of the gross value of the units and the inspector adopted this in her assessment. Taking into account build costs and contingencies the inspector decided, having balanced out the various figures, that 17 units would enable the scheme to produce a surplus.

Inspector: Karen Ridge; Hearing

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Sign up now
Already registered?
Sign in

Join the conversation with PlanningResource on social media

Follow Us:
Planning Jobs