Key facts
- Ministers have dropped plans to relax affordable housing rules for developers in England.
- The proposals would have ended affordable housing quotas for private builders on sites with 10 to 49 houses.
- A consultation revealed significant opposition, with 41% strongly opposed and 18% strongly in favour.
- Housing experts warned the change would disproportionately affect rural areas.
- The National Housing Federation estimated the policy could cost 32,000 affordable homes over 10 years.
- The government aims to build 1.5 million new homes by the end of the parliament.
Ministers have withdrawn proposals to relax affordable housing requirements for developers in England following a significant backlash from housing experts and organizations. The original plan, part of a broader planning reform document, would have allowed developers building sites with 10 to 49 houses to make cash payments instead of constructing affordable homes on-site.
This decision marks a notable reversal in housing policy. The government had hoped the measure would stimulate housebuilding and help meet its target of 1.5 million new homes. However, the National Housing Federation (NHF) warned that the change would disproportionately impact rural areas, where a substantial number of affordable homes are built on medium-sized developments. The NHF estimated that the policy could result in a loss of 32,000 affordable homes over the next decade.
Analysis of government statistics revealed that over half of all affordable homes in the most rural parts of England are constructed on developments of this size. The consultation on the proposals garnered strong opposition, with 41% of respondents strongly against the measure, compared to only 18% in favour. The government acknowledged the significant opposition across stakeholder groups and decided against proceeding, citing concerns that it could undermine manifesto commitments to increase social and affordable housebuilding.
Despite this reversal, ministers remain keen to ease regulations for private builders in other ways. New measures announced include instructing councils to adopt a default 'yes' approach to housing developments located near well-connected train and tram stations. Housing Secretary Angela Rayner emphasized the need for new homes, noting nearly 400,000 have been completed since the government took office, with a 15% increase in housing starts.