Policy H4 — Delivering affordable housing

Policy H4 Delivering affordable housing A The strategic target is for 50 per cent of all new homes delivered across London to be genuinely affordable. Specific measures to achieve this aim include: 1) requiring major developments which trigger affordable housing requirements [50] to provide affordable housing through the threshold approach ( Policy H5 Threshold approach to applications ) 2) using grant to increase affordable housing delivery beyond the level that would otherwise be provided 3) all affordable housing providers with agreements with the Mayor delivering at least 50 per cent affordable housing across their development programme, and 60 per cent in the case of strategic partners [51] 4) public sector land [52] delivering at least 50 per cent affordable housing on each site and public sector landowners with agreements with the Mayor delivering at least 50 per cent affordable housing across their portfolio 5) industrial land appropriate for residential use in accordance with Policy E7 Industrial intensification, co-location and substitution , delivering at least 50 per cent affordable housing where the scheme would result in a net loss of industrial capacity. B Affordable housing should be provided on site. Affordable housing must only be provided off-site or as a cash in lieu contribution in exceptional circumstances. 4.4.1 Delivering more genuinely affordable housing [53] is a key strategic issue for London. Meeting the need for circa 43,500 affordable homes per year, as established in the 2017 Strategic Housing Market Assessment, will require an increase in affordable housing contributions from all sources. All schemes are expected to maximise the delivery of affordable housing and make the most efficient use of available resources. This is critical to enabling London to meet the housing needs of its workforce and maintain the function and resilience of the city. 4.4.2 Past approaches have not adequately met levels of housing need. To provide greater certainty, speed up the planning process and increase affordable housing delivery, the Mayor is adopting a threshold approach to viability . This means that schemes meeting or exceeding the threshold without public subsidy, [54] and consistent with the requirements in Part C of Policy H5 Threshold approach to applications , are not required to submit viability information. The threshold approach was first introduced in the Mayor’s Affordable Housing and Viability SPG. It provides the opportunity to move away from protracted viability debates, create certainty in terms of affordable housing requirements, embed the requirements into land values, and offer a clear incentive for developers to increase affordable housing delivered through the planning system above the level in planning permissions granted in recent years. 4.4.3 Schemes that do not meet this threshold, or require public subsidy to do so, will be required to submit detailed viability information which will be scrutinised and treated transparently. Comprehensive review mechanisms will be applied to schemes that do not meet the relevant threshold as set out in Part B of Policy H5 Threshold approach to applications , in order to ensure that affordable housing contributions are increased if viability improves over time. 4.4.4 Schemes are expected to deliver at least the threshold level of affordable housing without grant or public subsidy and to increase this proportion through the use of grant and other subsidy, where available. Only where there are clear barriers to delivery and it is fully justified through detailed viability evidence, in line with the methodology and assumptions set out in Policy H5 Threshold approach to applications and the Mayor’s Affordable Housing and Viability SPG, should a lower level of affordable housing be considered. 4.4.5 Given the extent of housing need identified for affordable housing in the 2017 SHMA, the delivery of overall housing targets should not be relied on as a reason for reducing affordable housing delivery or other policy requirements, subject to the approach in this policy, Policy H5 Threshold approach to applications and Policy DF1 Delivery of the Plan and Planning Obligations . In previous years where there has been a relaxation in affordable housing and other planning requirements this has typically led to higher land values, rather than an increase in housing delivery. Whilst the Plan sets out a clear approach for significantly increasing housing delivery in London, the London SHMA has identified that 65 per cent of London’s need is for affordable housing . Therefore, it is crucial that residential and mixed-use development contributes directly towards the provision of affordable housing and other policy requirements that support the delivery of sustainable development. 4.4.6 The Mayor expects all affordable housing providers to deliver as much affordable housing as possible. Affordable housing providers with agreements with the Mayor should deliver at least 50 per cent affordable housing across their development programme and , in the case of strategic partners, 60 per cent. Affordable housing commitments by these providers are not planning requirements that can be applied to individual sites as the commitments are only achievable if the affordable housing providers have the flexibility to use their resources strategically to maximise affordable housing provision across London. 4.4.7 Public sector land represents an opportunity to deliver homes that can meet the needs of London’s essential workers who maintain the function and resilience of the city. The Mayor expects that residential proposals on public land should deliver at least 50 per cent affordable housing on each site. Public sector landowners with an agreement with the Mayor may provide 50 per cent affordable housing across a portfolio of sites provided at least 35 per cent affordable housing is provided on each site, with the required affordable housing tenure sLondon Plan Policy H4 · official source →