Affordable Housing Supplementary Planning Document (PDF 736 KB)

Affordable Housing Supplementary Planning Document
adaptations or of a specially designed new home requires public subsidy. Some people with special
needs also require care provided by Social Services, or other support funded by the County Council’s
Supporting People Team.
Private Sector Homes for Rent
Private landlords provide affordable housing when the rent charged is within Housing Benefit Local
Reference Rent (4) levels and/or when the Council provides subsidy to help landlords to bring empty
property back into use, to improve existing accommodation, or to convert commercial space (above
shops). Regeneration Grant is reserved for property that has been empty for more than 12 months
or commercial space that is no longer needed. In exchange for subsidy, the accommodation is let to
people nominated from the Council’s Housing Register.
Charitable Trust homes (including Alms housing)
Trusts provide rented housing by using funds that have normally been donated by wealthy or
benevolent people through their legacies. It is considered to be a form of social housing. Many
Almshouse Trusts have outdated qualification criteria, for example “for the benefit of the poor”, or
“people in reduced circumstances”. The Council is not involved in the allocations process. Trustees
decide who is in need of its housing. It is usually available for life, and few vacancies occur.
Mutual Ownership – Community Land Trust (CLT)
Based on a Community Land Trust model, Mutual Ownership involves buying a stake in an affordable
home, but not in the land upon which it is built. The CLT retains the freehold of the land and holds it
in trust as a charitable or public asset. Mutual Home Owners purchase a long lease and the cost of
their share is calculated using an income-linked formula. Future sales ignore the land value, generate
equity for leaseholders, and help sustain the Trust. CLTs generally require donated land and initial
pump-prime capital.
Right to Buy (RTB) – Right To Acquire (RTA)
Council tenants of 2 years or more can exercise their RTB, and RSL (housing association) tenants
their RTA. When a tenant purchases their existing home, there is a RTB discount of up to £30,000
(or in the case of a RTA a discount of up to £16,000). The discounted purchase makes these homes
affordable. Future re-sales are at full open market value by which time the properties are no longer
considered to be “affordable housing”.
Mechanisms for providing affordable housing
Affordable homes through Planning Gain
Where Developers propose new homes, the Council’s Affordable Housing policies include an
obligation to provide a proportion of affordable homes. These should be provided without the
need for public subsidy, and on the same site. Sometimes, the Council will agree that the
4 The Local Reference Rent is established by the Rent Officer (not the Council) & reflects the average cost of a range
of rents for local properties with the same number of rooms.
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Stroud District Council