Following consideration of the City of York Affordable Housing Viability Study - 2010 (AHVS) produced by Fordham Research at the Executive on the 14 December 2010 and at the Local Development Framework Working Group on the 5 December 2011 the following interim targets have been approved for Development Management purposes:

*Targets will be amended annually in accordance with the Dynamic Model,
#These targets can be reduced by a further 3.5% if a 25% developer profit is evidenced as required by financial institutes.

Off Site Financial Contribution (OSFC) and off site provision

In accordance with national guidance affordable housing provision is expected to be provided on site. The AHVS concludes that, for sites less than 5 homes a commuted payment may be more appropriate due to viability.

Off Site contributions for rural sites between 2 and 4 homes will be based on the following formula. Payment is not required where there is only a net gain of 1 home:

Calculation:
Average Property Price - Fixed RSL Price X 15%

   For example  2 dwellings = £15,427.50 total payment
   3 dwellings = £30,855.00 total payment
   4 dwellings = £46,282.50 total payment

Individual Site Assessments

Given the conclusions reached in the AHVS, developments within York should be able to provide the target levels of affordable homes approved for Development Management purposes. Therefore no individual site assessment will be required where submissions achieve these targets and this is to be encouraged in order to reduce time on further analysis and negotiation.

The AHVS is based on the industry profit norm of 20%. However, in the current market, some housebuilders have said that some financial institutions now require a 25% profit margin when lending/funding a scheme. If the housebuilder/developer can provide satisfactory evidence of that then the target will be reduced by 3.5%.

For all site thresholds, the Developer still has the right to submit an open book appraisal to justify circumstances where the target is not considered to be viable. Such appraisals must be independent and paid for by developers.

Conditions/S106

The percentage of affordable housing required will be determined in accordance with the target at the time consent is approved. The target current at the time of granting outline consent will be inserted into the S106 but the legal agreement will include a clause that allows the affordable housing % to be subject to review in accordance with the Fordham Dynamic Model at reserved matters or subsequent phases. This allows affordable housing in York to be responsive to changes in market conditions, whilst retaining healthy developer profit and incentive to build.

Next Steps

The AHVS along with other key evidence bases has informed the development of the Core Strategy Affordable Housing Policy. An Affordable Housing SPD will follow to support this. This will give clear and consistent guidance and be able to react to changing circumstances, such as new housing need and mix. More detailed information and advice on the operational approach to affordable housing policy in York will be set out and dealt with in the SPD.  It will explain the Dynamic Model that will be used to change the short term targets annually, the process of negotiation, on site expectations with respect to integration and quality, tenure mix, subdivision of sites, application of grant, nomination criteria and viability assessments.

Affordable Housing Advice Note

The Affordable Housing Advice Note forms non-statutory guidance to supplement the policies and proposals of the City of York Local Plan Incorporating the 4th Set of Changes. You can download the advice note on the right handside of this page. It provides guidance and advice on how to include affordable housing in development schemes. It is aimed at all groups involved in affordable housing - including council officers, developers, landowners, parish councils, registered social landlords and local interest groups. It should be noted that this advice note has not been updated to include the revised interim targets as set out above, approved by the Executive on the 14th December 2010 and the 6th of December 2011 until the Core Strategy is adopted. These supersede the targets in the advice note.

Contact Details

For further information and assistance in relation to affordable housing contact:

Derek Gauld, Principal City Development Officer -Tel ext:1470
Sally Cawthorn, City Development Officer -Tel ext: 1343

Andy Kerr, Housing Development Manager -Tel ext: 4153

Further Information

More information regarding affordable home ownership and affordable housing developments is available on the council website.
View further information on affordable housing.