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Affordable housing: building

This guide should be read in conjunction with pages 81 to 82 and 143 to153 of our 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.

Developers should:

  • apply for pre-application advice with our development management group
  • contact our principal housing strategy officer (for schemes up to 49 homes)
  • contact our 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

The South Lakeland Strategic Housing Market Assessment 2014 identified a need for 687 new affordable homes per year over five years. 

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 share of the home is sold and a rent charged on the unsold part
  • shared equity – where a share of the home is sold but, unlike shared ownership, no rental element is applied

SLDC Affordable Housing Prices – updated January 2017 (reviewed annually) 

Property type

(Minimum sizes in brackets) 

Affordable Housing Prices (AHP)

(initial fixed sale prices) 

Notional developer contribution
1 bed flats (40 sq. m) £74,382 OMV less £74,382
2 bed flats (50 sq. m) £85,008 OMV less £85,008
1 bed houses/bungalows (60 sq. m) £90,321 OMV less £90,321
2 bed houses/bungalows (65 sq. m) £100,947 OMV less £100,947
3 bed houses (75 sq. m) £116,886 OMV less £116,886
4 bed houses (85 sq. m) £132,825 OMV less £132,825

OMV = open market value (this will be determined by an independent chartered surveyor)

AHP = affordable housing price (as above)

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 = D. The re-sale price is then OMV x D.

Affordable homes for rent

These fall into two categories (these are generally held by housing associations): 

1. Affordable rents – the rent set must be the lower of either:

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:

Monitoring and review

Our affordable housing prices and guidance are reviewed each year.

Contact details

Tony Whittaker, housing strategy and delivery manager

Email: t.whittaker@southlakeland.gov.uk

Telephone: 01539 793 370

Julie Jackson, principal housing strategy officer

Email: j.jackson@southlakeland.gov.uk

Telephone: 01539 793 371

Development management group

Email: development.management@southlakeland.gov.uk

Telephone. 01539 793 330

Section 106 agreement templates