Affordable housing: building
This guide should be read in conjunction with pages 81 to 82 and 143 to 153 of our Local Plan Core Strategy.
Please note the core strategy does not apply to land in the national parks.
You can ask for advice on affordable housing requirements from the relevant national park authority.
- apply for pre-application advice with our Development Management group
- contact our Affordable Housing officers (for schemes up to 49 homes)
- contact our Principal Housing Strategy Officer or Housing Strategy and Delivery Manager (for schemes of 50 or more homes or 100% social housing schemes)
Further guidance will depend on the specific scheme.
Both the tenure mix and property type mix should be agreed at an early stage.
This information will eventually form part of a legal agreement to secure the affordable housing for the future.
We will use evidence from:
- the South Lakeland Strategic Housing Market Assessment
- parish housing need surveys where available
- the Cumbria Choice housing register
Housing need and demand
South Lakeland Strategic Housing Market Assessment 2017 (PDF/7MB/239 pages) identified a need for 153 affordable homes per year between 2016 and 2036.
We will expect developers to provide, in most cases, 50% of affordable homes for low cost home ownership and 50% for rent.
Where the affordable requirement is less than four homes, the tenure would be expected to be the same for all the affordable homes (sale or rent).
This will be reviewed on an annual basis.
Low cost home ownership (intermediate housing)
This can be provided by:
- discounted sale: where the initial price is discounted in line with our affordable housing prices and the discount is applied upon resale
- shared ownership: where a percentage share of the home is sold and a rent is charged based on the remaining percentage
- shared equity: where a share of the home is sold but, unlike shared ownership, no rental element is applied
Affordable housing prices: updated October 2017 (reviewed annually)
(minimum sizes in brackets)
Affordable housing prices (AHP)
(initial fixed sale prices)
Notional developer contribution
(Open market value (OMV) determined by an independent surveyor)
|1 bed flats (50 sq. m)||£76,316||OMV less £76,316|
|2 bed flats (61 sq. m)||£87,218||OMV less £87,218|
|1 bed houses/bungalows (58 sq. m)||£92,669||OMV less £92,669|
|2 bed houses/bungalows (70 sq. m)||£103,572||OMV less £103,572|
|3 bed houses (84 sq. m)||£119,925||OMV less £119,925|
|4 bed houses (97 sq. m)||£136,278||OMV less £136,278|
Homes are kept affordable for the future by applying a fixed discount to the open market value.
This is calculated in the following way: AHP divided by OMV multiplied by 100 = Discount. The re-sale price is then OMV x Discount.
Affordable homes for rent
These fall into two categories (these are generally held by housing associations, now called Private Registered Providers of Social Housing):
1. Affordable rents: the rent set must be the lower of either:
- a maximum of 80% of local market rents (including service charges)
- Local Housing Allowance rates
2. Social rents: where rents are set in line with national rent charging regime.
In most cases the provision of affordable rents will be acceptable. In exceptional circumstances social rents will be required.
Developers will agree with housing associations how much they pay for affordable homes. Developers should contact housing associations at an early stage to agree the appropriate rent.
Our housing association development partners are:
- South Lakes Housing
- Impact Housing
- Castles and Coasts
- Home Group
- Eden Housing
- Progress Housing Group
- Fairoak (learning disability homes)
Monitoring and review
Our affordable housing prices and guidance are reviewed each year.
Section 106 agreement templates
- Discounted sale and affordable rent 2015 (DOC/137KB/22 pages)
- Discounted sale 2015 (DOC/129KB/20 pages)
- Affordable rent or social rent 2015 (PDF/87KB/17 pages)
- Affordable rent and shared ownership 2015 (PDF/133KB/21 pages)
- Intermediate rent 2015 (PDF/88KB/17pages)
- Outline 2015 (PDF/74KB/12 pages)
- Shared equity 2015 (PDF/137KB/22 pages)
- Shared ownership 2015 (PDF/122KB/18 pages)