Aylesbury Vale Area Affordable Housing Supplementary Planning Document

6. What tenure split is being sought?

38. Most of the affordable housing need is for rented accommodation. The Bucks HEDNA Update Report 2016 Addendum and the Viability Assessment show that a tenure split of 80% affordable rent and 20% intermediate housing can be supported. In terms of the occupation of the affordable housing this will be controlled through the section 106 agreement, along with the council's nomination rights to the affordable housing.

39. The tenure of any affordable dwellings provided above the minimum requirement will be considered flexibly taking account of the Buckinghamshire HEDNA and other evidence of housing need. This will include any neighbourhood plan evidence for a made neighbourhood plan area.

Tenure Split – Worked Examples

40. To illustrate how this is applied 2 examples are set out below:

Example 1

Developer is proposing to build 275 dwellings on a site that is currently occupied by 4 houses, that is 271 gross. The minimum requirement is for 25% affordable housing.

Example 2:

A developer is proposing to build 19 dwellings on a site of 0.8ha that is currently occupied by 2 houses. This scheme would require 25% affordable housing for the 17 dwellings (net) i.e.4.25 units. 4 affordable units will be required on site. The minimum requirement for 25% in the example below.

Affordable housing for rent

41. It is considered essential that the units secured for affordable housing are affordable to those most in need. In relation to affordable housing for rent, rents must be set in accordance with the Government's rent policy for Social Rent or Affordable Rent or be at least 20% below local market rents (including service charges where applicable).

42. The rent should also not exceed the Local Housing Allowance level applicable to the location in which the affordable unit is situated at the time of letting the affordable unit. This is so that the council can be assured that the rent levels proposed can meet (and continue to meet) the needs of those in the greatest housing need, albeit with assistance from Housing Benefit for those who are eligible.

Other forms of affordable housing

43. In terms of non-rented Affordable Housing, the council's preference for the type of products is summarised in order below:

Shared ownership

44. This is expected to account for most of the intermediate housing required. Registered Providers have confirmed that they are willing to continue to deliver and manage affordable homes for shared ownership sale in the Aylesbury Vale area.

Other forms of intermediate affordable housing

45. The starting point for these tenures would be a discount of 30% below market value:

Shared Equity

46. This approach is based on the unsold equity balance being gifted to the council by the developer. Upon the first resale, the new purchaser is then required to acquire 100% of the total equity at market value.

47. The council will receive a sum for the equity balance, which if prices have increased will be more than the original sum but the converse could also apply i.e. if prices were to reduce. The receipts from the sale will be ring-fenced for use towards the provision of additional affordable housing elsewhere in the Aylesbury Vale area.

Discounted Market Sales Housing

48. These are low-cost homes for sale (at a price below the local market value). The council has provisions in place, in the form of legal agreements, to ensure that the same discount applies to sales in perpetuity.

49. If applicants wish to provide discounted market sales housing, an administration charge will be made for the work needed by the council to administer them.