Affordable Housing and Viability Supplementary Planning Guidance released

Mayor of London, Sadiq Khan, provided a new supplementary planning guidance (SPG), which focuses on London's availability to deliver affordable housing and increasing the speed of the decision-making process using the planning system at the same time.

The new approach is meant to enable the developers of private land a fast-track route through the planning phase if they meet the condition of minimum 35% of the development as affordable housing without public funding.

The Guidance stresses that:

• all developments need to be under way within two years of received planning permission;
• if the development has not started within that period, the company will face scrutiny of financial modelling behind the plans;
• if the development does not meet the required number of affordable housing, the company will face further scrutiny, and the financial details of the development will be put to public view;
• local planning authorities and City Hall officials must use their powers to prevent the developers from reducing the number of affordable housing, once the planning permission has been granted.

The new pathway laid down by the Guidance involves a Build to Rent system, which aims to "encourage affordable homes on the development to be delivered as discounted market rent (preferably at London Living Rent levels), managed by the Build to Rent provider" and delivered without subsidizing the project. Housing developments built under that system should offer at least 50 units and be held under a covenant for a period of at least 15 years.