Northumberland County
Council
Affordable Housing
Implementation Protocol
Draft Version 4 – 5 March 2009
Contents
Executive Summary
1. Introduction
2. Existing Affordable Housing Planning Policies
3. What is affordable housing?
4. Site thresholds
5. Affordable housing mix – tenure and property type
6. Long term affordability
7. Standards
8. Scheme viability assessment
9. Priority for on-site provision
10. Service charges
11. Rural affordable housing
12. S106 Agreement standard clauses
13. Negotiation process
14. Monitoring the provision of affordable housing – Northumberland
Social Housing Partnership
Appendix 1 – Income Information
Appendix 2 – Rural Exemption Settlements
Appendix 3 - Affordable Housing Proforma
Appendix 4 - Affordable Housing Flowchart
Appendix 5 - Terms of Reference – Northumberland Social Housing
Partnership
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Executive Summary
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1. Introduction
From 1st April 2009 there will be six existing sets of planning policies, including
affordable housing policies, based upon the existing district boundaries, in the area
covered by the new Northumberland County Council. The purpose of this Protocol is
to deal with a number of matters regarding the implementation of the six affordable
housing policies in the area covered by the new authority.
The Protocol is designed to ensure uniformity in the way of working across the
county in the period up to the implementation of the Core Strategy for
Northumberland County Council in the Autumn of 2011. However, where the matters
in this Protocol are already covered by adopted Policy, that will take precedence in
the geographical area covered by the Policy. Nevertheless, it is of fundamental
importance that Policy requirements are consistently applied to ensure fairness and
predictability of outcomes.
The Protocol covers a number of matters regarding the properties themselves, but
also includes a negotiation protocol and flow chart based upon practical experience
of conducting negotiations with developers and perceived good practice, both from
the existing districts and elsewhere in the country. Therefore, the Protocol provides
guidance on the criteria to be considered in determining the appropriate provision of
affordable housing within established planning policy and practical aspects of
negotiation. This is important as affordable housing is one of the top six priorities for
the Council.
The Council advises developers who are proposing residential development to
discuss and agree their proposals with the Development Management, Strategic
Planning and Housing services before they submit a formal planning application.
The Protocol is not a Development Plan Document or a Supplementary Planning
Document (SPD).
While the Protocol is aimed at affordable housing provided as part of mixed tenure
developments, many of the matters contained in the Policy will apply equally to the
provision of 100% affordable schemes, which some districts have been successful in
delivering in partnership with developers over the last few years.
2. Existing Affordable Housing Planning Policies
The following is a summary of the existing affordable housing spatial planning
policies in the county – further information can be obtained by looking at the source
document. In addition, there may be other relevant planning documents, such as
SPDs, relating to particular parts of the county, which will need to be considered.
In addition to the percentage target, the affordable housing policy may also cover
matters such as tenure and property type mix. In broad terms the intention will be to
fill in the gaps in the current supply of affordable housing based upon evidence of
need. While in many cases the main need will be for social rented properties, the full
range of affordable housing should be considered, so long as it can be shown to be
affordable based upon local incomes.
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Alnwick District Council
Within their Local Development Framework Core Strategy (adopted October 2007),
Alnwick District has included Policy S6: Affordable Housing Provision. This Policy
requires:
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On all housing sites of 10 units or 0.33 hectares in Alnwick and Amble and 3
units or 0.1 hectares in other settlements below 3000 population, developers/
applicants will be required to provide an appropriate element of affordable
housing within the site, where a need for such housing exists.
In exceptions where the developer/applicant or the Council owns other land in
the same local area (which may be more appropriate) provision may be made
on the alternative site through a planning obligation.
The proportion of affordable housing and its type sought on each site will
depend on the assessment of affordable housing need in the housing market
areas and in the local area.
In view of the current extent of need and RSS restricted housing supply, the
target proportion between 2005 and 2010 will be 35% of the total number of
units.
Applicants seeking to justify a lower proportion of affordable housing will be
required to support their claim with a full financial appraisal from an
independent surveyor.
Provision of affordable housing may be in the form of:
o Social housing for rent
o Discounted private sector rented housing
o Low cost ownership scheme through shared equity or for sale housing
where the sale price is linked to local income
o Intermediate housing for sale
o Other innovative methods.
In secondary, sustainable and local needs centres, exception sites to provide
100% affordable will be considered when supported by an up to date housing
needs survey (with data collected within the previous 12 months).
Development of exception sites should provide social housing for rent,
housing on a shared equity basis (equity capped at 80%) or housing for sale
at low cost with the sale price linked to local income.
All housing provided in pursuit of this policy must be available to people in
local housing need at an affordable cost for the life of the property (where this
can be achieved).
Within Appendix F of the Core Strategy there is a definition for affordable housing
which is in line with the PPS3 definition. Affordable housing provided under Policy S6
should be actually affordable to those who cannot access market housing. In the
context of social rented housing affordability is defined as a rent level being kept
within the Housing Corporation rent cap (which is determined through the national
rent regime). Affordable housing for sale should also be kept at an affordable price –
an affordable price is considered to be up to a maximum of 3.5 times the average
gross income for a 3 bedroom house in the area in question. The Appendix also sets
out what constitutes local needs.
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Berwick upon Tweed Borough Council
Within Berwick Borough applications for new housing development should be
considered against national and regional planning policy, and saved policies of the
adopted Berwick-upon-Tweed Local Plan, adopted April 1999.
The Borough Council has saved Policy S6 of their adopted local plan, which
requires:
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An element of affordable housing on sites of 1.5 or more hectares or a
development of 40 or more dwellings in the town of Berwick-upon Tweed
including Tweedmouth, Spittal and East Ord.
An element of affordable housing on sites of 1 or more hectares or a
development of 25 or more dwellings in other settlements, listed in Policy S3
of the local plan.
Other sites may be released in exceptional circumstances provided needs
arising are not met by other provisions and the development is not detrimental
to the area’s character and appearance.
Where affordable housing is provided under the terms of the policy, the
developer will be required to enter into binding agreements to ensure that the
affordable dwellings are provided and that they are occupied and remain
available for occupation, only be persons within particular categories of such
housing need.
Blyth Valley Borough Council
Within their adopted Local Development Framework Core Strategy (July 2007), Blyth
Valley Borough Council had included Policy H4: Affordable Housing Target.
Following a legal challenge to and the quashing of Policy H4 of the Core Strategy,
the Council is now negotiating the provision of affordable housing on a site by site
basis, utlising their Interim Affordable Housing Policy, adopted in November 2005 as
a starting point for these negotiations. This Interim Policy states:
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At least 30% affordable housing will be required on all residential
development schemes (new build and conversions) in the Borough which are
above the following site size thresholds provided that such provision would
not prejudice other planning objectives that need to be given priority by the
development of the site:
o Blyth: 10 Dwellings/0.3 hectares
o Cramlington: 10 dwellings/0.3 hectares
o Seaton Valley: 10 dwellings/0.3 hectares
Housing provided under this policy should, where appropriate be available for
the life of the property. Where the affordable housing is to be provided via a
Registered Social Landlord the national rent agreement will ensure that the
property remains affordable in the long term. Where affordable housing is to
be provided by a means other than a Registered Social Landlord/Local
Authority a section 106 obligation will be entered into as part of a planning
application in order to ensure that the property remains affordable in
perpetuity.
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Permitted development rights will be withdrawn to prevent such development
being enlarged/altered in any way which would change its affordability to
future occupiers.
Affordable housing can be provided by the following range of delivery
mechanisms which will be negotiated on a site by site basis:
o Social Rented (RSL/LA or other persons as provided for in the Housing
Act 2004)
o Intermediate Housing (Sub-market renting/low cost home ownership
[discounted/shared equity])
o Affordable Housing designed to meet special needs (i.e. elderly,
disabled)
The presumption will be that the provision of affordable housing will be on
site, however, there may be circumstances where more innovative solutions
are required particularly in regeneration areas, on previously developed land
or in areas of low housing demand. There may be circumstances where it is
considered that it is preferable that a financial or other contribution should be
made towards the provision of the element of affordable housing on another
site within the Blyth Valley Council area. The exact details of such a proposal
would be negotiated through a section 106 obligation.
Applicants seeking to justify a lower proportion of affordable housing than
specified in this policy will be required to support their claim with a full
financial appraisal of the scheme costs and end values from an independent
surveyor recognised by the Council.
In reaching a judgment on the appropriate level of affordable housing
provision on each site the Council will have regard to the other planning gain
contributions which may be required in order to meet other development or
regeneration priorities and the overall financial viability of the site.
In addition to the above, Policy H15 of the Blyth Valley District Local Plan (adopted in
May 1999) is a saved local plan policy which states that where permission is granted
for affordable housing, permission will be conditioned such that units can only be
occupied by those qualifying as being in need of affordable housing in line with the
current housing need assessment and/or the Local Authority housing needs criteria,
where relevant.
Castle Morpeth Borough Council
The Castle Morpeth District Local Plan, which was adopted in February 2003,
identifies two specific sites where a proportion of affordable housing would be
required and Policy H9 states that the Council will promote the development of
affordable housing to meet local needs, particularly in rural areas. This policy is a
saved local plan policy.
In addition to the saved local plan policies, in March 2008 the Council adopted an
Interim Planning Policy for Affordable Housing as a policy tool in determining
applications for new housing development. This policy:
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Adopts the PPS3 definition of affordable housing, which includes social rented
and intermediate housing but excludes low cost market housing.
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The role of locally based RSLs in the ownership and management of
affordable properties is promoted.
Developers of intermediate affordable housing will have to ensure that such
housing is affordable to people on the average gross household incomes
(based upon ASHE), subject to occupancy criteria and available in perpetuity.
Adopts an overall target of 40% of affordable housing, with 50% on public
sector and Greenfield sites and sites in excess of 30 dwellings (0.5 hectares
or more).
A broad balance of 50% for social rent and 50% as intermediate affordable
housing has been adopted.
A mix of affordable property sizes and types will be required.
A tenure blind approach to affordable housing will be promoted.
On schemes of 5 or more (0.2 hectares or more) in Morpeth and Ponteland
affordable housing will be sought.
A threshold of 3 or more (0.1 hectare or more) will apply outside Morpeth and
Ponteland
There will be a presumption that affordable housing will be provided on site,
however, off-site provision or a financial contribution in lieu of on-site provision
may be accepted.
100% affordable housing on rural exception sites, in perpetuity has been
adopted.
Tynedale District Council
Within their adopted Local Development Framework Core Strategy (adopted October
2007), Tynedale Council has included policies on affordable housing. Policy H7
states that:
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Affordable housing needs will be met in main towns, local centres and other
smaller villages where there is an adequate range of services (as defined in
Policy H3).
Affordable housing needs will be met as locally as possible through:
o Re-use or re-allocation of existing stock
o Allocation of sites for affordable housing
o Permitting affordable housing schemes as windfalls including those on
exception sites
o Seeking an appropriate element of affordable housing on market
housing sites, in accordance with Policy H8.
Policy H8 of the Core Strategy states that:
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Where a relevant local need has been established, the Council will seek to
negotiate with developers to secure an appropriate element of affordable
housing on all housing developments of:
o 15 or more dwellings or 0.5 hectares or more in Hexham, Prudhoe and
Haltwhistle.
o 5 or more dwellings or 0.2 hectares or more elsewhere.
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Depending on the assessment of local need, the proportion of affordable
housing sought will range between 30% and 50% of the total dwellings on the
site.
In negotiating the provision of affordable housing, the character of the site, the
nature of the development proposed and the impact on the viability of the
development overall will be taken into account.
Within the Core Strategy affordable housing is defined as in Annex B of PPS3.
In addition to the above Core Strategy policies, Policy H23 of the Tynedale District
Local Plan (adopted in April 2000) is a saved local plan policy which identifies that as
an exception residential development may be allowed on land within or adjoining
settlements with an adequate range of services and facilities where it is clearly
demonstrated that there is an overriding local need for affordable housing which
cannot be met in any other way.
Wansbeck District Council
Wansbeck District Council has included an Affordable Housing policy within their
Replacement of the Wansbeck District Local Plan, which was adopted in July 2007.
Policy H7 of the adopted Local Plan stipulates that:
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On all housing sites of more than 0.5 hectares or developments of more than
15 dwellings, the authority will negotiate for the provision of at least 30% of
the total dwellings proposed to be in the form of affordable housing.
The developer will need to satisfy the authority that affordable housing
provided under the policy will remain affordable on subsequent changes of
ownership or occupant.
Affordable housing is defined as including social rented and intermediate housing,
provided to specified eligible households whose needs are not met by the market.
Unless expressly excluded from the policy, these policies will also apply to outline
applications and to the conversion of any building, including in rural areas, whether
or not it is already in residential use. Should an outline application for residential
development be proposed, the Council will carry out an assessment to see if the
appropriate threshold applicable to the area will be reached. If it is determined that it
will be, then the applicant will be expected to enter into a S106 Agreement to provide
affordable housing on site. As the actual number of units to be developed will not at
that stage be known, then the Agreement will have to specify that a particular
percentage of the units will be affordable. For conversions the gross number of units
created by the development to calculate the amount of affordable housing that
should be provided.
The requirement to provide affordable housing extends to all types of residential
development including housing for the elderly. Housing for the elderly falls into
the same use class as residential (class C3) and is therefore expected to
contribute to the provision of affordable housing. If this is in the form of general
needs accommodation, then there may be concerns raised about the potential for
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conflicting lifestyles between younger and the elderly. If it is for the elderly then
specific needs evidence for this age group will be required.
3. What is affordable housing?
a). The national context – PPS3
The Government defines affordable housing as including social rented and
intermediate affordable housing, provided to specified eligible households whose
needs are not met by the market. Affordable housing should:
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Meet the needs of eligible households including availability at a cost low
enough for them to afford, determined with regard to local incomes and local
house prices,
Include provision for the home to remain at an affordable price for future
eligible households or, if these restrictions are lifted, for the subsidy to be
recycled for alternative affordable housing provision.
Social rented housing is rented housing owned and managed by local authorities
and Registered Social Landlords (RSLs), which are also known as housing
associations, and available to people on local authority or RSL housing waiting
registers, for which guideline (or Target) rents are set. Target rents are set under a
national rent regime and are well below market levels and so are more affordable.
When a household ceases to occupy a social rented home, it is made available to
other households eligible for social rented housing through nomination arrangements
with the local authority.
Intermediate affordable housing is housing at prices and rents above those for
social rent, but below market prices or rents and which meet certain specified criteria
and can include:
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Intermediate rented homes, which are provided at rent levels above those of
social rented but below those of private rented,
Discounted sale homes have a simple discount for the purchaser on its
market price, so the purchaser buys the whole home at a reduced rate and
this percentage discount is available in perpetuity. This is successfully
achieved in some councils by the low cost price based on local income being
certified by the council and then translated into a percentage discount over
the open market value which is then registered with the Land Registry,
Shared equity homes where more than one party has an interest in the value
of the home e.g. an equity loan arrangement or a shared ownership lease.
There can be a charge on the loan, and restrictions on price, access and
resale. Would include the HomeBuy product promoted by the Government.
Low cost market housing, such as ‘starter homes’, where the price is set in the open
market, is specifically excluded from the definition and so can not be regarded, for
planning purposes, as affordable housing. While low cost market housing will not be
accepted as part of the affordable housing provision developers may include it as
part of the market element, as it can play a useful role in meeting housing demand
and achieving an appropriate housing mix.
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b). The local context
Unless the Local Plan or Core Strategy for an area already includes a local definition
of affordable housing, the definitions set out in PPS 3 will be adopted by the Council.
c). A local definition of affordability
i.
Social rented affordable housing
In terms of ensuring affordability, the position is straight forward for social rented
properties as a cap of no more than Target Rent will be specified in line with PPS3.
ii.
Intermediate affordable housing
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General
The position is more complex for intermediate affordable housing, where the PPS3
definition only makes a reference to the price – whether capital or rental – being submarket.
If it is considered that intermediate affordable housing is designed to meet the needs
of those households unlikely to obtain a social rented property, but not earning
sufficient to rent or obtain a mortgage on an entry level (lower quartile) open market
property in the area, then it will have to meet the needs of a wide income range.
The Communities and Local Government (CLG) Guidance on carrying out Strategic
Housing Market Assessments recommends that a household can be considered able
to afford intermediate affordable housing when rental payments in the case of a
rented property, or rental payments and mortgage payments in respect of a shared
equity property, constitute up to 25% of gross household income and where the cost
of buying a home is no more than 3.5 times the gross household income for a singleincome household or 2.9 times the gross household income for dual-income
households.
So, if the cheapest social rented 2 bedroom housing in an area is £60 per week, then
this would be affordable to a household with an income of c£12,500 (£60 x 52 x 4). If
the cheapest open market 2 bedroom housing to rent in an area is £400 per month,
then this would be affordable to a household with an income of c£19,200 (£400 x 12
x 4). While if the entry level open market 2 bedroom housing was £100,000, then this
would be affordable to a household with a single income of c£28,500 (£100,000/3.5)
or a dual income of c£34,500 (£100,000/2.9). Therefore, in this instance, the
intermediate affordable housing provided would have to be affordable to households
earning between £12,500 and £34,500, and so a number of options will have to be
offered, not just one.
In order to provide this range of options household income information has to be
either available or calculated using a variety of assumptions. A current housing
needs survey should contain household income figures, and the population profile
across the income range, enabling the options developed to be targeted at the
part(s) of the income range where there are the most households in housing need.
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In the absence of information from a current housing needs survey, household
income down to Ward level is available from CACI PayCheck data. However, this is
currently not available to the Council, although its purchase is being investigated.
Consequently household income has to be calculated. In order to do this a source
providing income information has to be identified and an assumption made about
household composition.
The Annual Survey of Hours and Earnings (ASHE), published by the Government,
provides information about the levels, distribution and make-up of earnings and
hours worked for employees in all industries and occupations at the individual district
level, with the analysis including being by place of work by Local Authority and by
place of residence by Local Authority. For the purposes of this Protocol the place of
work figures will be adopted, as intermediate affordable housing is designed to meet
the housing needs of people with a local connection such as work. In addition, the
adoption of these figures will remove the impact of the commuter incomes included
in the by place of residence figures. The full time figures have been adopted,
removing the impact of people in part-time employment.
Ideally the Median should be used, as in more affluent districts the Mean is likely to
be significantly skewed upwards by those on the higher incomes, whereas the
Median is more likely to reflect the lower income ranges more accurately. However,
the Median figures are not available for all districts and so the Mean figures have
been adopted.
The 2008 Mean figures by place of work by local authority for full time workers for
the current districts of Northumberland are shown in Appendix 1. These figures show
quite a range across the county from the more rural areas of Alnwick and Berwick at
£22,823 and £17,789, and the more urbanised areas of Blyth and Castle Morpeth at
£26,698 and £26,131 respectively.
While the ASHE information is useful in the absence of other figures, its’
disadvantage is that the information is only available at a district level and so may
hide differences between the less and more affluent areas of a district.
For the purposes of this Protocol an assumption has been made that a single person
household will have an income equivalent to the Mean for the area, and a dualperson household will have an income equivalent to the Mean income for the main
wage earner and the Lower Quartile figure for a second wage earner. These
calculated figures are also shown in Appendix 1, although for all districts, except for
Blyth and Castle Morpeth, the Lower Quartile is not available for 2008 and so the
Northumberland figure has been adopted.
The ASHE figures are updated annually, and the revised figures will be adopted from
the 1st of the month following their publication.
The S106 Agreement securing the intermediate affordable housing will also have to
include eligibility criteria, to ensure that it is occupied by people with a local
connection to the area. In due course it is intended that eligibility for intermediate
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affordable housing properties will be determined in accordance with the Council’s
allocation scheme.
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Discounted sale properties
During current market conditions, with prices falling and mortgage finance difficult to
obtain, discounted sale properties are less popular than they once were.
Nevertheless, they are shown as being in need in housing needs surveys which
have been carried out across the county.
Appendix 1 shows the maximum initial sale price for the current districts in the
county, based upon the Calculated Household Income and the assumptions
contained within the CLG Guidance on carrying out Strategic Housing Market
Assessments. The Appendix also shows lower quartile house price information for
each of the districts in the county, for All House Types in the district.
For the discounted sale properties to be considered to be affordable then the
calculated maximum initial sale price should be lower than the lower quartile house
price in the district. In the main this applies. However, the relationship does not hold
good in the case of Blyth and Wansbeck where the larger stock of terraced
properties brings the average down. Therefore, in these cases it is suggested that
the cap be set at the lower quartile house price.
So, the initial price at which the discounted sale properties can be sold will be the
calculated price or the lower quartile price for All House Types for the area,
whichever is the lower.
Once the cap has been set for the first sale of the property, a mechanism needs to
be in place through the S106 Agreement to enable the property to remain affordable
in the future. It is proposed that this be based upon the increase in incomes in the
area, so that the initial relationship between average income and the value of the
discounted sale property is maintained. However, this would be subject to a
mortgagee in possession clause at full open market value, with the Council or an
RSL having the first option to purchase at that figure.
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Shared equity properties
During current market conditions, with prices falling and mortgage finance difficult to
obtain, shared equity properties, such as Newbuild HomeBuy, are less popular than
they once were. Even during better market conditions the proportion of affordable
dwellings delivered as Newbuild HomeBuy was much lower in the North East than
other parts of the country. However, it is promoted by the Government as a form of
intermediate affordable housing, although in the current market conditions this may
be in the form of an intermediate rent to HomeBuy product.
Shared equity does also allow a buyer whose income may change over time to
staircase up towards full ownership, or down, as their circumstances change and so
gives a degree of flexibility. It therefore can have an important role to play as part of
the overall intermediate affordable housing package, depending upon local housing
needs evidence.
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Assessing whether a household can afford a shared equity property
Often shared equity properties are offered by providers on the basis of the sale of a
50% share, with rent being 3% on the retained equity. Would this be affordable?
Assuming that the property is a 1 bed flat in Alnwick, to be affordable to a calculated
single earner household income of £20,492 the monthly outgoings on housing
should be no more than £426.92 (£20,492/4/12).
If the value of the property is £120,000, with a 50% share to be sold and the rent on
the retained equity at 3%, then the monthly outgoings on housing would be:
The mortgage (for £60,000) has monthly outgoings of £350 (calculated from current
mortgage lending practice – 25 years at a mortgage rate of 5%). The rent on the
landlord’s share is £150 per month ( £60,000 @ 3%/12). So the monthly outgoings
on housing would be £500 a month (assuming no service charge) and so not
affordable.
For it to be affordable the % share to be sold and/or the rent on the retained equity
would have to be reduced. In this case if the rent on the retained equity were to be
reduced to 1.5%, then the monthly outgoings on housing would be £425 and so
affordable.
Therefore, for shared equity properties to be affordable to the range of households to
which intermediate affordable housing is targeted, including single and dual income
households, a range of property types should be provided. Using the above
methodology the equity shares sold and rent levels charged will need to be varied, to
possibly as low as 25%, with rent figures below the 3% of the retained equity level, to
ensure affordability.
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Intermediate rented properties
The Homes and Communities Agency use an intermediate rent at 80% of the open
market rental value as their method of ensuring affordability. However, this is not
related to local incomes.
An exercise was carried out using the SHMA guidance of rented housing considered
to be affordable when rental payments constitute up to 25% of gross household
income. The Calculated Household Income figures were used, but the result was
rental figures often in excess of open market rental values.
Therefore, an alternative approach was used, namely taking the average of the Av
Social Housing Rent pcm and the Local Housing Allowance (LHA) maximum rent
levels which are used for Housing Benefit purposes. Due to the current absence of
detailed information on rent levels in the county, the LHA figures have been used as
a guide to open market rental values. This approach recognises one of the roles of
intermediate affordable housing, namely to meet the needs of those unlikely to be
able to access social rented accommodation, but unable to afford market rented
properties.
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Most of the county is within the Northumberland Broad Rental Market Area (BRMA),
although part comes within the Newcastle BRMA. The Northumberland figures are
shown in Appendix 1.
Appendix 1 also shows the resulting maximum rent for intermediate rented
properties. In the current absence of better information about household income
levels, these figures may be considered as a guide.
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Conclusion
As stated earlier the position regarding the affordability of intermediate affordable
housing is complex, which is exacerbated by the current lack of detailed household
income information for Northumberland, with certain assumptions having to be made
to determine this if it is not available from an up to date housing needs survey.
Nevertheless, it is important to ensure that the affordability of intermediate affordable
housing is related to local incomes, that a number of options are provided to cover
the range of households unable to rent or buy in the local market or secure social
rented properties and that the property types secured, and whether they are for
single or dual income households, are based upon up to date housing needs
information.
4. Site thresholds
The site thresholds where affordable housing will be required are set out in the
affordable housing policy for the area where the site is located – see Section 2
above.
There may be instances where a developer tries to artificially sub-divide a site to
circumvent the need to provide affordable housing. The Council must be alert to, and
not permit any benefit to be gained from, the piecemeal subdivision of a site. Sites in
the same ownership, or where an ownership relationship can be proven, should be
treated as a single planning unit and if the site threshold is met, the applicant will be
expected to enter into a legal agreement to provide affordable housing in line with
the affordable housing policy for the area.
In the same way the density of the proposed development will be considered in the
context of local policy to ensure that it is appropriate to the location and not artificially
low to circumvent the need to provide affordable housing.
Where proposals come forward for developments below the appropriate threshold for
the area, the design, unit mix and site boundaries should be closely scrutinised to
ensure there has been no deliberate attempt to avoid the need to provide affordable
housing.
5. Affordable housing mix – tenure and property type
The tenure and property type mix will be based upon:
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The Policy contained within the Local Plan or the Core Strategy for the area if
included,
Evidence of local need from, for example, a housing needs survey at the
district, local or Parish level, a Parish Plan, and from the areas of preference
shown by applicants to Northumberland Homefinder, or from other Council or
RSL waiting lists for social rented housing or intermediate affordable housing.
In rural areas it may be appropriate to determine whether the affordable
housing mix will help to support the sustainability of the settlement,
The Strategic Housing Market Assessments (SHMAs) carried out by DTZ in
2005 and 2007. A further SHMA is due to be commissioned by the Council
Spring 2009 and to be delivered Summer/Autumn 2009, which will be a more
up to date source of needs information.
6. Long term affordability
The aspiration of the Council is that affordable housing remains affordable and
available to those in housing need in perpetuity. The involvement of an RSL is the
most effective way of developing a successful, well managed scheme that will
ensure that the benefits of affordable housing are secured in perpetuity.
However, there are some restrictions on the principle of affordable properties being
available in perpetuity. For example, there are legal rights which cannot be
overcome by contractual S106 Agreements, such as leasehold enfranchisement, the
Right to Buy and the Right to Acquire which give leaseholders or tenants the right to
buy 100% of the property. Although in rural areas there are exceptions to these
rights, for example, settlements with populations of less than 3000 population can be
deemed as “rural exemption” settlements where the Right to Acquire will not apply.
The rural exemption settlements are listed in Appendix 2.
In accordance with PPS3 in situations where the restrictions controlling affordability
are lifted, the subsidy released will be recycled to alternative affordable housing
provision.
The delivery of affordable housing by an RSL is not the only means of providing
affordable housing. Where a developer proposes to develop and manage the
affordable homes without the involvement of an RSL, planning obligations and a
S106 Agreement will be used to make sure that nomination rights and occupancy
controls are in place to guarantee initial and subsequent affordability and the
management service to be provided.
7. Standards
a). Design and specification
The Council will expect applicants to ensure that the affordable properties are
integrated into the overall development, in terms of their built form and external
appearance, so that they are indistinguishable from the market properties. Affordable
properties should not be marked out by being of poorer design, specification and
quality of finish than neighbouring market properties.
16
With the introduction of the Housing Corporation Design and Quality Standards in
April 2007, the Council will require all affordable housing provided to meet these
standards, regardless of whether or not Homes and Communities Agency (HCA)
funding has been secured. As specified within the core standards, various levels
must be achieved based on the requirements of Housing Quality Indicators v4
(2007), Code for Sustainable Homes and Building for Life Standard.
In respect of the Code for Sustainable Homes, Level 3 is currently required, although
this will be reviewed upwards over time in line with the change in HCA requirements.
For the Building for Life Standard the current requirement is that there will be a
positive response to 12+ of the questions. There will have to be detailed discussions
with developers regarding how these requirements will be met.
b). Accessibility
Currently 40% of the population of Northumberland is over 50 years old, and by 2021
the proportion is expected to be approaching 50%. Over the same period, the
number of people aged 85 and over is expected to increase from 7,000 to 11,000.
These dramatic changes in the balance of the population are happening earlier in
Northumberland – especially rural Northumberland – than in most of England; their
impact on the texture of life in the county will be gradual but profound.
Therefore, with this ageing population there is a need for properties that are either
accessible for wheelchair users now or can be easily adapted to meet the changing
mobility needs of the occupants over time. Lifetime Homes, Lifetime
Neighbourhoods: A National Strategy for Housing in an Ageing Society
requires that by 2011 all public sector funded housing is to be built to the Joseph
Rowntree Foundation Lifetime Homes standard. However, the Council is introducing
this requirement earlier in respect of affordable dwellings and will require all
affordable units to be built to the Lifetime Homes standard. In addition, 10%, with a
minimum of one, to be wheelchair units in accordance with the Wheelchair Housing
Design Guide, Second Edition, BRE Press, subject to there being demonstrable
need and the site location being suitable.
c). Pepper potting and phasing
The Council supports the development of sustainable mixed and balanced
communities. In order to avoid the negative implications of social exclusion and
isolation, affordable homes within housing schemes should be evenly distributed
across the site. Ideally the Council would like affordable properties to be in groups of
no more than two, however it accepts that there may be management advantages in
having larger groupings. Therefore, in order to have a balanced approach the
Council will require affordable homes to be grouped together in clusters of normally
no more than 6 properties, which should be evenly distributed across the entire site,
although this will be subject to specific site circumstances, for example topography.
Although there may be situations where due to the size of the site, or the specifics of
the layout or design, where groupings of more than 6 may be more appropriate, it
should be considered that this will be the exception rather than the rule.
17
The Council expects the location of the affordable housing will be discussed and
agreed at an early stage in conjunction with the developer or appointed RSL. The
final location must be shown on a plan attached to the S106 Agreement.
On small rural sites it is recognised that ‘pepper potting’ may not be required or
appropriate.
In flatted developments it may be preferable to secure a discrete block(s) to
(potentially) allow the RSL to acquire the freehold, to facilitate better management
and to contain service charges at affordable levels. However, the benefits of this
need to be weighed against the scope to achieve a better degree of pepper potting.
In larger flatted schemes the Council will seek integration of affordable and
open market blocks. In such circumstances it is essential that these matters are
addressed at a very early stage in discussions.
As far as practicable affordable housing should be developed and occupied at the
same rate as the market units. This is to avoid delays in provision and the possibility
of longer term deferral should the housing market decline or the developer
experience financial difficulty. Although the response of some developers to the
current credit crunch has been to bring forward the affordable housing provision, this
should be looked at closely on a case by case basis. While on the one hand this will
result in affordable properties being delivered early, it can lead to larger
concentrations of affordable housing, which could be undesirable in policy terms.
Effective integration of the affordable housing should avoid phasing difficulties.
However, it is good practice to require that all affordable housing should be
completed and as appropriate transferred to the RSL before sale of a specified
number of the market dwellings (e.g. 95%).
8. Scheme viability assessment
a). General
The Council recognises that requiring developers to allow part of their site to be used
for non-market housing will result in a cost. However, Planning related requirements,
such as financial contributions towards community facilities, children’s play areas
and affordable housing will be seen as known costs. Therefore, the onus will be on
developers and their agents to negotiate reasonable site acquisition costs with the
landowner in order to offset these requirements. Planning permission will not be
granted without meeting these requirements and, consequently, there should be no
unreasonable expectations from landowners.
Developers will be expected to make land acquisition bids conditional upon gaining
planning permission, meaning that these costs can be reflected in the eventual
purchase price.
Foreseeable abnormal development costs such as land de-contamination, ground
works, and infrastructure costs should also be reflected in land value and will
therefore be disregarded in viability assessments. The only exception to this would
be where costs can be demonstrated to be so high as to make site development
18
totally unviable with the provision of affordable housing. For example, where the
development value of the site allowing for foreseeable development costs, and
affordable housing would be below the existing use value meaning that the site
would not come to the market.
In order for the Council to consider reducing or waiving certain S106 requirements,
the developer must be able to show that there are abnormal development costs
associated with the site that were not reasonably foreseeable at the time the land
was bought, that cannot be offset by depreciated land value or cannot be recouped
in the open market sale price of the new homes. Bearing in mind the extent of the
affordable housing need in the county, it is not acceptable for a developer to pay an
enhanced purchase price in the expectation that they can then use this to minimise
the S106 requirements, including affordable housing.
b). Procedure for carrying out scheme viability assessments
Although the standard expectation is that land values will reflect the need to provide
affordable housing, developers are increasingly arguing that due to present market
conditions they are unable to deliver the required amount of affordable housing, as
property prices have fallen at the same time as building costs continue to increase.
This is a national phenomenon and has been recognised in the work of housing
consultants Fordhams, as well as others.
Therefore, there will be situations where the developer claims that they are unable to
provide the full S106 requirements, and so they will be required to prove their case
through an economic appraisal. The Housing Corporation published an Economic
Appraisal Tool in October 2007 (http://www.housingcorp.gov.uk/upload/xls/
HC_Economic_Appraisal_Tool_Version_1-3.xls) which sets out the type of
information required to enable a viability assessment to be carried out. This includes
information regarding costs, values, timing, phasing and profit. Developers can either
complete the Housing Corporation Tool, or provide the information in another format,
so long as the same level of information is provided. The procedure to be followed is:



The appraisal is undertaken by the developer and submitted to the Council for
consideration by officers and then assessment either by a Council valuer or
by an independent surveyor,
Council Valuers, Housing and Planning officers will set the terms of reference
for this assessment (which will be agreed with the applicant), and will be the
client, but the developer will be required to cover the costs of both completing
the economic appraisal and the independent assessment, which will be small
compared to the cost of the site and value of the scheme. The terms of
reference will require, inter alia, the independent assessor to comment on the
reasonableness of costs and values, assumptions made about finance costs,
and profit level, which will be those applicable at the time the appraisal is
completed,
If the independent assessment confirms that real viability issues exist then a
decision will have to be made about revising some of the Council’s S106
requirements, including the affordable housing, which may be either to the
overall scale of affordable provision, to the property mix and/or the tenure
type,
19



In cases where scheme viability is an issue, and so the Council’s affordable
housing requirements can not be met in full, a dialogue will be required with
the HCA and RSL partner to see if grant funding can be secured so as to
improve the level of provision, mix, and/or standards so as to bring them up to
the Council’s requirements – referred to as ‘additionality’,
In situations where it is not possible to secure the full required amount of
affordable housing, and HCA funding has not yet been secured, this should
be reflected in the S106 Agreement through a ‘cascade’ system which
outlines what has been secured and what would be delivered if HCA funding
is obtained,
Where viability has been an issue due to current market conditions provision
for a ‘clawback’ mechanism should also be included in the S106 Agreement. It
should be recognised that many of the sites currently being considered will
not actually be developed until market conditions improve, and so the S106
Agreement needs to be able to capture and secure the additional value which
may arise at that time for affordable housing. This should include a further
economic appraisal (and above procedure) being carried out just prior to the
development commencing, to identify the extent of that additional value.
The intention would be ultimately to secure the Policy level of affordable housing,
through the S106 contribution and HCA funding if required, assuming that this is
supported by housing need.
Initially the Council will set up a list of appropriate surveyors, although in the future
there may be the opportunity to appoint a surveyor on a regional basis, which would
help to ensure a uniformity of approach and a more detailed knowledge of costs and
values throughout the county.
The developer will be expected to meet the Council’s legal costs in the preparation of
the S106 Agreement.
9. Priority for on-site provision
In accordance with PPS 3 there is a presumption that affordable housing will be
provided on-site. If applications are submitted with no on-site provision of affordable
housing, where it is considered that affordable housing could have reasonably been
provided, such applications will be refused. If the particular design and layout of a
proposed housing scheme suggests that affordable housing cannot be
accommodated on site, but the site itself is considered suitable, there will be an
expectation on the developer to redesign the scheme in order to accommodate
affordable housing.
However, exceptionally, where it can be robustly justified to the satisfaction of the
Council, off-site provision or a financial contribution in lieu of off site provision may
be accepted as long as the agreed approach contributes to the creation of mixed
communities in the county. One example of this may be where the developer has
other land in his ownership equally suited to affordable housing.
If the Council accepts off-site provision, the affordable housing should generally be
provided on an alternative site within the same settlement, although a site in a more
20
sustainable location or in an area of higher need may be a suitable alternative. The
Council will need to be assured that the alternative site is suitable, planning
permission can be secured at the same time and the site is available for
development within an appropriate timescale. The use of a S106 Agreement would
be required to ensure that the affordable housing is delivered.
A financial contribution in lieu of off site provision (commuted sum) is the Council’s
least preferred option, and will only be considered in exceptional circumstances. Any
financial contributions generated will be used to provide affordable homes in one of
the following ways:
• New-build affordable housing (including the development of exception
sites in rural areas, or other new-build affordable housing sites);
• Conversion of empty market properties to affordable housing; and
• Purchase (and repair) of existing market housing for occupation as
affordable housing.
The commuted sum will be calculated as the subsidy the developer would normally
have to provide to enable the affordable housing to be developed on site without any
other public subsidy (such as HCA grant) being available. This will be equivalent to
the cost of building the required number of affordable dwellings of the appropriate
size and type set out and the value of the land needed to build them on at open
market value, minus the amount equivalent to what would be payable by an RSL
based on their ability to borrow against the rental stream they will receive from the
properties.
10. Service charges
On developments where the affordable housing provision is subject to a service
charge, the charge should not be so great as to make occupancy unaffordable. The
Council will consider the level of service charges in the context of prices, rents and
overall affordability and so the total cost of occupation will be considered, not just the
component parts.
The assessment of affordability will be considered having regard to the tenure and
type of affordable housing provision i.e. intermediate affordable housing may sustain
higher service charge levels than social rented housing.
11. Rural affordable housing
The Living Working Countryside, the independent review by Matthew Taylor MP,
found that the high cost of homes, coupled with the low wages of rural workers, is
creating unsustainable pressures that threaten the future of rural communities.
Therefore, all opportunities should be taken to secure affordable housing on
qualifying sites in rural areas. However, there may be situations where due to a site
being located in a village with limited facilities, or in an isolated rural location (in the
case of some conversions), it is felt that it is not a suitable location for the provision
of on-site affordable housing. In these situations off-site provision may be more
suitable.
21
Due to the limited opportunities to secure affordable housing on mixed tenure sites in
rural areas, PPS3 states that where viable and practical, Local Planning Authorities
should consider allocating and releasing small sites for 100% affordable housing,
including using a Rural Exception Site Policy. A number of the districts in the
county have adopted this approach – see Section 2 for details. Such a Policy
enables small sites to be used, specifically for affordable housing, in rural
communities that would not normally be used for housing because, for example, they
are subject to policies of restraint. In accordance with PPS 3, rural exception sites
should only be used for affordable housing in perpetuity and should be located within
or on the edge of existing settlements in sustainable locations, close to services,
facilities and public transport. The aim should be to deliver high quality housing that
contributes to the creation and maintenance of sustainable, mixed and inclusive rural
communities.
A household will qualify for occupancy if it has an identified housing need and a
‘local connection’ to the parish, such as being a current resident or having an
existing family or employment connection. The Council will advise the Parish Council
on the local connection someone needs to have in order to be offered a home, and
the criteria will be enforced using a S106 Agreement.
Bearing in mind the very limited opportunities to develop affordable housing in many
parishes, the Council will adopt a positive and pro-active approach with landowners,
Parish Councils and rural affordable housing enablers to deliver affordable housing,
where a local need can be evidenced, on appropriate sites. This will include the
promotion of Community Land Trusts as appropriate. However, it could also be the
case that the landowner or Parish Council will initially promote the need for
affordable housing to the Council, such as though a Parish Plan.
A typical process of delivering a rural exception site could be:
1. The Parish Council and local ward members are contacted by the Council’s
Affordable Housing Team, an RSL or members of the Parish Council to obtain
agreement on proceeding with a rural exception scheme,
2. A local needs survey may need to be undertaken to determine the affordable
housing types and numbers needed in the village,
3. A comparative assessment of all potential sites is undertaken to identify
potential site options with the Parish Council. Planning, highways, landowners and
preferred developer consulted on the most deliverable and acceptable site. At this
point grant funders such as HCA are informed,
4. The preferred site is identified, negotiations with the landowner are carried out and
detailed design discussions take place with the Parish Council and the Council’s
Development Management team are consulted formally as a pre-application enquiry,
5. The site gains planning consent, subject to a S106 Agreement setting out the
occupancy criteria, is developed and the houses are let to people with a local
connection in housing need.
However, the exact sequence of events will depend upon the circumstances, so that
activities may be able to occur in tandem, rather than sequentially and indeed may
not be required at all.
22
In general schemes would not be expected to proceed unless there is significant
local support for the proposals. However, while the preference would be to have this
support, if there is overwhelming need the Council may take the decision to proceed.
Although such schemes can be time consuming, to deliver a limited number of
properties, they can nevertheless make a significant impact on meeting housing
need and helping to make villages more sustainable.
12. S106 Agreement standard clauses
The intention will be to agree Heads of Terms concerning the affordable housing,
which will enable the S106 Agreement to be drawn up, adopting standard clauses
and a template where possible to provide certainty, so as to cover the following:














Location and number of affordable housing units,
The phasing of the development and affordable housing delivery,
Proportion of tenure in percentages,
House types and size,
That if a Registered Social Landlords is involved, it must be an approved
organisation,
The timing of the transfer to the Registered Social Landlord,
Schedule of qualifying occupants according to planning and housing policy
requirements, such as local connection cascades, nomination rights, etc,
Affordable Housing Price and proposals to register and secure the price,
In rural settlements and special needs housing the agreements must accord
to local/specialised letting/sale agreements,
Any service charge will be agreed by the Council to ensure the properties
remain affordable,
Social rents will accord to Target Rents,
If the affordable housing secured has been reduced due to current market
conditions, a ‘Claw back’ mechanism to secure additional value which may
arise in the future for affordable housing,
Methodology of securing intermediate housing in perpetuity, and,
As required further clauses to secure affordable housing in perpetuity.
The Council will ensure the Section 106 Agreement delivers affordable housing to
those in need.
13. Negotiation process
The implementation of the Policy requirements appropriate for the area where the
site is located should seek to maximise affordable housing provision (within identified
needs) but not place unrealistic demands on developers which may serve to inhibit
rather than deliver provision.
It is of fundamental importance that Policy requirements are consistently applied to
ensure fairness and predictable outcomes. Although site specific factors will apply
and need to be reflected, for example around level of housing need, mix of
affordable tenures, property type mix and financial viability, this will be within an
agreed Policy framework – in the form of the Local Plan or Core Strategy Affordable
23
Housing Policy for the area and the contents of this Protocol. So flexibility is
possible, but within Policy requirements – this ability to be flexible can help the
overall outcome as developers are less likely to genuinely negotiate if they think they
are involved in a one way process.
Normally Affordable Housing staff will lead the affordable housing negotiations as
they will be familiar with housing needs and have effective working relationships with
RSL and affordable housing development partners. However, it is essential to invite
Planning colleagues to these meetings.
Good relationships between Housing and Planning are key to the effective
implementation of the Affordable Housing Policy for the area where you are
working.
As discussing and agreeing the affordable housing provision to be secured from a
qualifying scheme can be a detailed and lengthy procedure the aspiration is for the
affordable housing provision to be agreed prior to the submission of the planning
application. The purpose of these pre-application decisions is to complete and ‘sign
off’ an Affordable Housing Proforma (see Appendix 3), and the affordable housing
Heads of Terms for the S106 Agreement, giving details of the affordable housing,
which will accompany the planning application.
The procedure to be followed in terms of the pre and post application discussions is
as set out in Appendix 4. In carrying out these discussions the following should be
borne in mind:

Try to make the meeting comfortable for all concerned. Be friendly but
professional, assertive but not aggressive. Effective negotiations are founded
upon effective relationships,

Make it clear to the developer that your role is to enable rather than prevent
affordable housing development and that the purpose of negotiation is to
support development within Policy requirements,

Be well prepared – know the Policy requirements, and the level and type of
housing need in the area where the development site is located,

Make it clear from the outset that Policy targets are minimum requirements
and that any reduction from targets can only be considered if justified by a
financial viability assessment. Always test the developer’s assertions about
scheme viability. Do not accept unsubstantiated claims,

Make it clear to the developer that the aspiration is to have the affordable
housing provision agreed and the Heads of Terms for the S106 Agreement
approved before the application is submitted,

Explain the arrangements by which the RSL for the scheme has been chosen
if it is a social rented or shared equity scheme and make it clear that all RSLs
must adhere to the negotiated outcome and so there is no benefit to the
developer in seeking an alternative,
24

However, under no circumstances should RSLs be allowed to negotiate policy
requirements with the developer. Rather they should be involved in joint
discussions as soon as possible to ensure that they are happy with the
proposals and so that they can have an input into the design and achievement
of standards. This ensures that all issues relating to the delivery of the
affordable housing are addressed and resolved prior to planning permission
being issued,

Be clear that HCA and other standards must be achieved. Advise the
developer that the RSL will identify the necessary standards and work with
them to ensure that they are achieved,

If grant will be required to deliver ‘additionality’ consult the HCA and consider
involving them in future negotiations,

If intermediate affordable housing is to be provided be clear as to whether you
require discounted sale, HomeBuy or a mix of the two and the sale values to
be achieved. Explain that sale values must reflect local incomes and
affordability requirements and explain how the discount over open market
value is to be secured for future sales. Explain the difference between
different tenures and how they will be marketed,

Make the developer aware of your position in respect of commuted payment/
provision. Be prepared to explain and justify your Policy position,

Do not necessarily seek to reach agreement in a single session. Remember
that the developer always wants to develop and it may well be necessary for
them to go away and consider your requirements before they can confirm their
position. Equally do not feel that you have to agree to something if you are not
entirely happy. You can always say that you will consider something – this is
much better than agreeing to something and then having to go back to say
you have changed your mind.
Finally, take comprehensive notes and confirm your understanding of the position
with the developer. This means that both sides are clear about what has been
agreed – and just as importantly not agreed and so to be discussed at future
meetings, which could be confirmed in an e-mail following the meeting.
14. Monitoring the provision of affordable housing –
Northumberland Social Housing Partnership
PPS3 requires the Council to set a county-wide target for the amount of affordable
housing that will be delivered each year. This target will come from the Strategic
Housing Market Assessment (SHMA) which will be commissioned during 2009 and
the results incorporated into the Core Strategy for the county. In the meantime a
target of 196 units will be used, which has been adopted for National Indicator 155,
within the Local Area Agreement, for 2009/10 and 2010/11.
The achievement of the target will be highly dependent upon the Council
25
maximising the amount of affordable housing on new sites coming forward for
development during the period.
Should more than 196 new affordable homes be secured in any one year the Council
will not reduce the target in the following year and will continue to negotiate for the
provision of affordable housing. This is because the actual annual need for
affordable housing in the county is significantly greater than 196 new affordable
homes per year.
Local Planning Authorities have to submit an Annual Monitoring Return to
Government showing performance in the previous year. As part of the preparation
for this, the Council will monitor the percentage of affordable housing secured on
residential development sites and also affordable housing completions. This
information will also be used in support of a number of local performance indicators.
As part of the monitoring of performance a Northumberland Social Housing
Partnership will be set up and meet quarterly. This will include attendees from a
range of partners and stakeholders, including Council representatives, RSLs and
the HCA. Terms of Reference are included in Appendix 5.
The quality of the service across the county will also be monitored to ensure that the
service is consistent and of high quality. While the Council will also monitor
nomination and occupancy arrangements to ensure that, amongst other matters, the
affordable properties are occupied by eligible households.
Case studies could be used to promote good practice when positive outcomes have
been achieved.
In due course this Protocol will be superceded by a Supplementary Planning
Document (SPD) covering affordable housing, due to commence in Oct 2010 and be
adopted in Nov 2011, following the adoption of the Core Strategy for Northumberland
County Council in September 2011. In the interim it will be incorporated into an
Affordable Housing Strategy for the county and reviewed in the light of experience
and amended as necessary.
26
Appendix 1
Income Information
Area
Mean Income £
Lower Quartile £
24,481
22,823
17,789
26,698
26,131
23,609
24,692
15,493
n/a
n/a
14,726
16,493
n/a
n/a
Northumberland
Alnwick
Berwick
Blyth Valley
Castle Morpeth
Tynedale
Wansbeck
Source: ASHE 2008: Table 7.7a Place of work by Local Authority Full Time
(http://www.statistics.gov.uk/downloads/theme_labour/ASHE_2008/tab7_7a.xls)
Calculated Household Income
Area
Single Income
Household
Dual Income
Household
22,823
17,789
26,698
26,131
23,609
24,692
38,316
33,282
41,424
42,624
39,102
40,185
Alnwick
Berwick
Blyth Valley
Castle Morpeth
Tynedale
Wansbeck
Note: Single Income = 1 x Mean. Dual Income = 1 x Mean & 1 x Lower Quartile
Calculated Maximum Affordable Price
o Discounted sale
Area
Alnwick
Berwick
Blyth Valley
Castle Morpeth
Tynedale
Wansbeck
Discounted Sale
£
Single
79,881
62,262
93,443
91,459
82,632
86,422
Dual
111,117
96,518
120,130
123,610
113,396
116,537
Lower Quartile House
Price Information
December 2008
All House Types
120,000
115,000
90,000
135,000
139,000
75,000
Note: Discounted Sale – Household Income x 3.5 for single person household and x
2.9 for dual person household. Source for lower quartile house price information:
Hometrack
27
o Intermediate rent
Bedrooms
Av Social Housing
Rent pcm
1
2
3
4
5
215
260
300
315
-
Maximum Local
Housing Allowance
Rent pcm Northumberland
(January 2009)
327.50
400.00
475.00
637.50
750.00
Calculated
Intermediate rent
271.25
330.00
387.50
476.25
-
Sources:
Av. Social Housing Rent RSR Data
Local Housing Allowance - The Rent Service
Note:
Calculated Intermediate Rent = Average of Av Social Housing Rent
pcm and Maximum Local Housing Allowance Rent pcm
Appendix 2
Rural Exemption Settlements
List to be provided.
28
Affordable Housing Proposal
Appendix 3
When completed and agreed, submit this with your planning application
Applicant/Agent:
Address:
Telephone:
E-mail:
Personal Contact:
Provision of Affordable Housing to be made:
on-site
off-site
Site Location/Address (location plan included)
Site area (hectares)
No of units
INTEREST IN THE LAND
Please state the applicants interest in the land,
(owner, prospective purchaser,
option to purchase, conditional contract etc.)
If a Registered Social Landlord is engaged, please name ------------------------------------------------SUMMARY OF PROPOSED DEVELOPMENT
AFFORDABLE HOUSING PROPOSAL
Please state the number and type of dwellings (i.e. house/flat and no. of bedrooms) to be made
available as affordable housing (see notes below)
2 bedroom flat
3 bedroom
house
Other
2 bedroom
house
4 bedroom
house
2 bedroom
bungalow
Number
socially
rented
Number
Intermediate
(as defined by
PPS3)
For a socially rented development, is your RSL partner willing to use the Northumberland Choice
Based Letting scheme (Northumberland Homefinder) or enter into a nomination agreement?
yes
no please tick as relevant
For intermediate or non RSL developments are you willing to use the Council’s allocation scheme?
yes
no please tick as relevant
Housing Officers comments: agreed
no agreement
_________________________________________________________________________________
_________________________________________________________________________________
Signed
(Housing Development Officer)
Date
Signed
(Applicant/Agent)
Date
29
Appendix 4
Affordable Housing Flowchart
Pre-Application
Procedure
1st contact
Development
Management to est.
planning principles
and process. Issue
policy requirements
including building
standards & standard
section 106 clauses.
2nd contact with
housing to establish
housing need, RSL
partner & other
requirements. Issue
affordable housing
proforma to applicant
and planning.
Planning Application Submission Procedure
Submission only
accepted with a
sign housing
proforma
Planning &
Housing agree
draft affordable
housing Heads
of Terms for
S106.
No signed
housing
proforma .
Contact
applicant to
resolve issues.
3rd contact detailed
planning/housing
meeting
Evidence of
community
consultation
Proposals
address policy
requirements.
Issues not
resolved. Advise
planning why
proposals are
not satisfactory.
Issues resolved
through
negotiation with
applicant.
Joint meeting
with housing
and planning to
resolve issues
30
Consider
planning
proposals
Report drafted
and application
determined by
Planning
Committee.
Planning
permission
refused by
Committee.
Planning
permission
approved by
Committee.
Planning to
monitor
implementation.
Housing monitor
letting criteria.
Appendix 5
Terms of Reference – Northumberland Social Housing Partnership
1.
Aims and objectives of the Northumberland Social Housing Partnership
The Northumberland Social Housing Partnership exists to:




2.
Meet the housing need of Northumberland communities and aim to rebalance
housing markets in Northumberland;
assist the Council in achieving its strategic and enabling role, as well as LAA
affordable housing targets;
advisors will provide support and guidance for housing associations operating in
Northumberland;
create opportunities for both the Council and its partners to undertake their
respective roles more effectively and efficiently.
Participating organisations
The following organisations are members of the Partnership: XXXXXXXXXXXX
The members of the Partnership may change from time to time and the mechanism for
including a new organisation is described in Section 6 below.
Government Office North East and the Homes and Communities Agency will be invited to
attend all meetings in a ‘contributing observer’ capacity.
3.
Status of the Partnership
The Partnership is a not a legal entity and agreeing to be a member of the Partnership does
not imply that any organisation has entered into any form of binding or legal agreement. Any
organisation is free to withdraw from the Partnership at any time.
4.
Outputs and outcomes
The outputs and outcomes of the Partnership will necessarily change over time. To
accommodate that need for change, the Partnership will review annually the outputs and
outcomes that it hopes to achieve and will establish an annual work plan to achieve them.
5.
Responsibilities of the partners
All partners undertake to:




contribute constructively to the aims of the Partnership;
ensure that the organisation they represent makes every effort to provide information
necessary to facilitate the work of the Partnership;
respect the fact that Partners have a over-riding commitment to meet their own
organisations requirements;
respect the fact that some matters discussed at Partnership meeting are confidential
and to observe the confidentiality agreement.
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Northumberland County Council undertakes to:






use its best endeavours to facilitate the provision of affordable housing in
Northumberland;
ensure that Partners have the opportunity to contribute to the development of housing
strategies;
ensure effective cross departmental working within the Council;
provide opportunities to discuss and agree a forward programme of development in
Northumberland;
support agreed bids for funding;
provide opportunities for dialogue between the Council and housing providers in
relation to planning matters.
The housing association partners undertake to:





6.
use their best endeavours to contribute to delivering affordable housing in
Northumberland;
contribute to the development of housing strategies;
share information with the Council relating to their performance in Northumberland;
collaborate with the Council and other Partners to avoid competition which might result
in increased costs for affordable housing or increased level of subsidy to provide that
housing;
use their best endeavours to access funding to support the provision of affordable
housing.
Membership of the Partnership
Members of the Partnership will normally be restricted to those organisations that:




currently own or manage affordable housing in Northumberland, or;
are involved in providing additional affordable housing in Northumberland, or;
provide services to those in need of affordable housing (e.g. housing advice or
support), or;
are able to contribute additional or specialist resources to facilitate the provision of
additional affordable housing in Northumberland.
A majority of existing Partners will normally need to agree the admission of a new member
of the Partnership but the Council will have the right to invite or decline a new member.
7.
Relationship of the Partnership to other bodies
The Partnership is not responsible to any of the individual organisations represented in the
Partnership. However the work of the Partnership will be formally reported to the Council
(or the appropriate Committee or Board of the Council).
8.
Meetings
The Partnership will normally meet on a quarterly basis although:


additional meetings may be arranged if the need arises;
sub groups may meet at other times to address specific issues in behalf of the
Partnership.
The business of the meeting will be conducted through the Chair.
32
Northumberland County Council will normally host meetings and they will provide the
necessary accommodation, with a schedule of meetings being drawn up at the beginning of
each calendar year. Minutes will be taken for all meetings. These will be circulated to all
Partners and will also be publicly available to anyone requesting a copy.
9.
Chair
The Chair will always be an Elected Member of Northumberland County Council.
10.
Representing the Partnership
No member of the Partnership will have the authority to speak on behalf of the Partnership
or make statements to the press on behalf of the Partnership unless that has been agreed
by the Partnership.
11.
Financial implications
Partners do not enter into any financial commitments by being a member of the Partnership.
However the partnership may in the future request financial contributions from members to
enable activity to achieve the objectives of the Partnership.
12.
Confidentiality
Discussion at Partnership meetings and information that is provided to Partners will be
subject to a confidentiality agreement.
Any Partner has the right to decline to provide the Partnership with any information that the
Partner considers to be commercially sensitive.
13.
Disputes and dispute resolution
The Partnership will have a role in disputes which arise between two or more Partners in
relation to the provision of housing or any related services within Northumberland.
The matter will be referred to a meeting of the Partnership. The Chairman will have the
authority to appoint an independent third party to review the dispute and recommend a
course of action to the partnership.
Any organisation (or individual representing that organisation), that the Partnership decides
has acted in a way that was likely to bring the Partnership into disrepute, can be asked to
withdraw from the Partnership.
14.
Review
The Partnership may need from time to time to change the way it operates or it’s terms of
reference. To facilitate that process, the Partnership will review its operation one year after
coming into existence and biannually thereafter.
Signed:
………………………………………………………………
Date:
………………………………………………………………
Organisation:
………………………………………………………………
33
NORTHUMBERLAND SOCIAL HOUSING PARTNERSHIP
OUTPUTS AND OUTCOMES FOR 2009
1. Strategy development
The Council will actively involve all partners in the development of housing strategies for the
County and also ensure that they are advised about other Council policies and strategies
which are likely to impact on them. The Council will provide real opportunities to share
expertise and work collaboratively.
2. Affordable Housing Development Programme
The Partnership will agree:
 a process for determining the nature, location and extent of social housing development
in Northumberland;
 which organisations will be involved in delivering that programme;
 whether there is scope for associations to enter into agency arrangements for either
development or management purposes;
 how funding will be maximised.
The Partnership will agree:
- what housing needs data is required to support a planning application for affordable
housing, how that will be evidenced and who will be responsible for its provision
- the scale and location of schemes over 3-5 years
- the criteria for determining the viability and sustainability of schemes.
The Partnership will, if possible, agree a model form of Section 106 Agreement for use in the
development of affordable housing in Northumberland. This will be subject to the pending
Government guidance on this matter.
3. The sharing of information and monitoring
Information will be shared and monitored in order to improve service delivery. The
Partnership will agree areas of activity to be monitored, (where possible using the
performance data collected for other purposes). This is likely to include:
 homelessness
 housing need
 housing register
 management and maintenance;
 decent homes
 properties that are adapted for the disabled
 energy efficiency
 tenant involvement
 new development.
4. The joint commissioning of services by the partners
The partners will explore the extent to which services could be jointly provided or
commissioned, e.g.:
 a single waiting list for housing applicants;
 joint commissioning of stock condition surveys, housing needs surveys, housing market
analysis, customer satisfaction surveys.
34