Build 25% affordable housing, minister tells developers

Communities Minister Malcolm Chisholm has called for a quarter of all new housing developments in Scotland to be made available for affordable housing.

The move will make Scotland the first country in the UK to apply the principle of giving developers a blanket target. It follows the 50% target imposed in London early last year.

The 25% target has been set in a new planning advice note on the provision of affordable housing.

Although the note is not legally binding, the Chartered Institute of Housing in Scotland said it sent a “clear message” to planners about the need for more affordable housing.

The note says developers will be expected to give 25% of the site to a housing association in council areas where local plans say that a percentage of land should be set aside for affordable housing.

Speaking on Tuesday at the CIH in Scotland conference in Aberdeen, Chisholm said: “The planning system can play an immediate role in supporting the delivery of affordable housing. Some authorities have used affordable housing policies to good effect to achieve a proportion of affordable housing in market housing developments. We have taken account of the experience to prepare the new advice on planning.”

David Orr, chief executive of the Scottish Federation of Housing Associations, said the note was “very useful”, but added that it was, as yet, unclear how many more affordable homes it would deliver as councils currently had different affordability targets ranging from 15% to 40%.

He added that it would stop developers from targeting areas where affordability targets were low as developers would have to give up 25% of any site they developed.

“Developers have never been enthusiastic about this measure, but it will make sure that land is sold on the same basis [across Scotland].”

Nick Fletcher, policy and public affairs officer at CIH in Scotland, said: “We now have to make sure that planners sit down with housing professionals and identify need.”

But the Convention of Scottish Local Authorities said councils should not have affordability targets imposed upon them.

Jason McDonald, COSLA policy manager, said: “We support the executive in trying to deliver affordable housing but we would rather see local flexibility as councils are best placed to determine their own needs.”

Chisholm also revealed details of the shared-equity scheme that was announced last year (HT 26 November 2004, page 12).

Applicants will have to find 60% to 80% of the house price, with the rest being paid by a housing association, though the homebuyer will not pay rent for occupying the property.

Fletcher said: “This is a good idea, it’s quite radical. Lower-income households will get a better chance to get on the housing ladder, but it has to be part of an overall policy on affordable housing.

“The communities minister must go further and carry out a root-and-branch review of the right to buy.”