Planning
Obligations
Supplementary Planning Document to
the Hounslow Local Development
Framework
Directorate of Planning
London Borough of Hounslow
March 2008
TABLE OF CONTENTS Glossary
Glossary ... 1
1. PLANNING OBLIGATIONS – GENERAL PRINCIPLES ... 7
1.1 Introduction... 7
1.2 The role of the SPD ... 8
1.3 What types of obligations will be sought? ... 11
1.4 Process of Negotiating and Securing Planning Obligations ... 11
1.5 Viability Issues... 13
1.6 Development Plan Policy Context ... 13
1.7 Qualifying Developments ... 16 1.8 Standard Charges ... 20 1.9 Pooling of Funds ... 21 1.10 Maintenance... 22 1.11 Costs ... 22 1.12 Confidentiality... 22
1.13 Referrals, call-ins and appeals ... 23
1.14 Use and Monitoring of s106 Legal Agreements and Unilateral Undertakings . 23 1.15 Local Land Charge ... 24
1.16 Index Linking ... 24
PLANNING OBLIGATIONS SPD - AFFORDABLE HOUSING... 25
2.1 Introduction... 25
2.2 The Need for Affordable Housing ... 25
2.3 Development Plan ... 27
2.4 Definition of Affordable Housing... 27
2.5 Social Rented Housing ... 29
2.6 Intermediate Housing ... 29
2.7 Key Worker Housing ... 30
2.8 Affordable Housing Requirements ... 30
2.9 Negotiating the Maximum Reasonable Proportion of Affordable Housing ... 32
2.10 The Nature of Affordable Housing Provision ... 33
2.11 Obtaining Subsidy ... 35
Securing Affordable Housing ... 36
2.12 Design Issues... 36
2.13 Higher Density Developments ... 37
2.14 Procedures for Schemes that Include Affordable Housing... 38
PLANNING OBLIGATIONS SPD - CONTRIBUTIONS TOWARDS SCHOOL PLACES ... 40
3.2 Qualifying Schemes ... 40
3.3 The Formula ... 40
3.4 Components of the Formula ... 41
PLANNING OBLIGATIONS SPD - COMMUNITY AND HEALTH FACILITIES ... 43
4.1 Health Facilities ... 43
4.2 When Contributions Will be Sought... 43
4.3 The HUDU Model ... 43
4.4 Other Community Facilities ... 44
PLANNING OBLIGATIONS SPD – OPEN SPACE, PLAY SPACE AND RECREATION ... 45
5.1 Introduction... 45
5.2 The Hounslow Plan ... 45
5.3 Hounslow Sport and Active Recreation Strategy (2005) ... 45
5.4 Hounslow Play Strategy ... 45
5.5 When Contributions will be Sought ... 45
5.6 The Formula- Off-Site Open Space Provision or Enhancement... 46
5.7 Private Residential Amenity Space provision ... 47
5.8 Qualifying Schemes ... 47
5.9 Formula: ... 47
5.10 EXAMPLES: ... 48
5.11 Sports and Recreation... 49
5.12 Play Space ... 49
5.13 Play space formula ... 49
5.14 Potential Benefits: ... 50
5.15 Landscaping and Comprehensive Project Areas ... 51
PLANNING OBLIGATIONS SPD – PUBLIC REALM ... 52
6.1 Introduction... 52
6.2 The Formula for Environmental Improvements Contributions ... 52
6.3 Safety and Security Measures ... 52
6.4 Qualifying Developments ... 53
6.5 The Formula for Safety and Security Contributions... 53
6.6 Landscape Provision in new development ... 54
6.7 Public Art ... 54
6.8 Qualifying Developments ... 55
6.9 The Formula – Public Art... 55
6.10 Flood Risk ... 55
6.11 Qualifying Developments ... 55
6.12 Air Quality, Energy Efficiency and Renewable Energy... 55
PLANNING OBLIGATIONS SPD – EMPLOYMENT, TRAINING & CHILDCARE ... 57
7.1 Introduction... 57
7.2 Developments requiring planning contributions ... 57
7.3 Delivery ... 58
7.5 Construction Training ... 58
7.6 Job Brokerage and Training ... 59
7.7 Construction Training ... 60
PLANNING OBLIGATIONS SPD – TRANSPORT... 61
8.1 Introduction... 61
8.2 Transport Contribution Formula ... 61
Glossary
Access This term refers to the methods by which people with a range of needs (such as disabled people, people with children, people whose first language is not English) find out about and use services and information.
Accessibility This term is used in two distinct ways, its definition depending on the accompanying text (see Accessibility of the Transport System below).
Affordable housing This is defined in the Affordable Housing Chapter
Air Quality Management Area (AQMA) An area which a local
authority had designated for action, based upon a prediction that Air Quality Objectives will be exceeded.
Car club These are schemes such as city car clubs and car pools, which facilitate vehicle sharing.
Department of Communities and Local Government (DCLG)
The government department responsible for planning, local government, housing and regional development.
Development plan document (DPD) Statutory planning documents, produced by the borough, that together form the Local Development Framework.
Green belt Green belts are a national policy designation that helps to contain development, protect the countryside and promote brownfield development, and assists in the urban renaissance. There is a general presumption against
inappropriate development in the green belt.
Housing Corporation A statutory public body whose role is to fund and regulate Registered Social Landlords in England.
Lifetime Homes Ordinary homes designed to provide accessible and convenient homes for a large segment of the population from young children to frail older people and those with temporary or permanent physical or sensory impairments. Lifetime Homes have 16 design features that ensure that the home will be
flexible enough to meet the existing and changing needs of most households, as set out in the Joseph Rowntree Foundation report ‘Meeting Part M and Designing Lifetime Homes’.
Local Development Framework Statutory plans produced by the borough that comprise a portfolio of development plan documents including a core strategy, proposals and a series of area action plans.
Local Implementation Plan (LIP) Statutory transport plan produced by the borough bringing together transport proposals to implement the Transport Strategy at the local level.
Local Strategic Partnership (LSP) Cross-sectoral, cross-agency umbrella partnerships, which are focused and committed to improving the quality of life and governance in a particular locality. They seek to enable services to be aligned in a way that effectively meets the needs and aspirations of those who use them.
Low cost market housing – defined with in Affordable Housing Chapter.
The definition of Major Development is as defined in Art. 1 of the General
Development Procedure Order 1995, which provides that Major Development is defined as development involving any one or more of the following:
• For dwellings: where 10 or more residential units are to be constructed (or if number not given, area is more than 0.5 hectares)
• the provision of a building or buildings where the floor space will be 1000 sq metres or more (or site is 1 hectare or more)
• Waste development
• The winning and working of minerals or the use of land for mineral-working deposits
• Development carried out on a site having an area of 1 hectare or more
Metropolitan Open Land Strategic open land within the urban area that contributes to the structure of London.
Nature conservation Protection, management and promotion for the benefit of wild species and habitats, as well as the human communities that use and enjoy them. This also covers the creation and re-creation of wildlife habitats and the techniques that protect genetic diversity and can be used to include geological conservation.
Open space All land that is predominantly undeveloped other than by buildings or structures that are ancillary to the open space use. The definition covers a the broad range of types of open space, whether in public or private ownership and whether public access is unrestricted, limited or restricted.
Public realm This is the space between and within buildings that are publicly accessible, including streets, squares, forecourts, parks and open spaces.
Public Transport Accessibility Level (PTAL) The extent and ease of access by public transport, or, where it can reasonably be used as a proxy, as the degree of access to the public transport network.
Renewable energy Energy derived from a source that is continually replenished, such as wind, wave, solar, hydroelectric and energy from plant material, but not fossil fuels or nuclear energy.
Section 106 Agreements These agreements confer planning obligations on persons with an interest in land in order to achieve the implementation of relevant planning policies as authorised by Section 106 of the Town and Country Planning Act 1990.
Supplementary Planning Document (SPD) An SPD forms a part of the Local Development Framework supplementing specific policies in the plan. It must be consistent with national and regional planning guidance, as well as the policies set out in the adopted plan. Public consultation should be undertaken and SPDs should be regularly reviewed. SPDs may be taken into account as a material consideration.
Sustainable development This covers development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Traffic calming These are self-enforcing measures that are designed to encourage drivers to make their speeds appropriate to local conditions. Traffic calming schemes can improve the environment and reduce accidents.
Transport Impact Assessment This is prepared and submitted alongside planning applications for developments likely to have significant transport implications.
Transport for London (TfL) One of the GLA group organisations, accountable to the Mayor, with responsibility for delivering an integrated and sustainable transport strategy for London.
Unitary Development Plan (UDP) Statutory plan produced by the borough which integrate strategic and local planning responsibilities through policies and proposals for the development and use of land in the area.
Vicinity: in this document means nearby and within surrounding area so as to ensure a geographical relationship between the contribution and the
development.
Wheelchair accessible housing This refers to homes built to meet the
standards set out in the second edition of the Wheelchair Housing Design Guide by Stephen Thorpe, Habinteg Housing Association 2006.
1. Planning Obligations – General Principles
1.1 IntroductionThis SPD has been prepared to outline and clarify the London Borough of
Hounslow’s approach, policies and procedures in respect of planning obligations. These are taken forward through legal agreements made under section 106 of the Town and Country Planning Act 1990 (as amended). Such legal agreements are often called “Planning Obligations” and can be negotiated between local authorities and persons with an interest in a piece of land (or developers) in the context of granting planning consent, in which case they are typically known as “Section 106 Agreements”. Alternatively a developer may submit a unilateral Planning Obligation known as a ”Unilateral Undertaking”.
There is no requirement for Planning Obligations to be tied to a particular
planning permission, as it is possible for them to be entered into by the owners of land for the purpose of regulating any or all development of the land or to provide for the payment of financial contributions. Planning obligations provide a means to ensure that a proposal for development contributes towards the creation of sustainable communities and may, in appropriate cases, be used to make
development proposals acceptable where they might otherwise be unacceptable. Planning Obligations are local land charges and run with the land and so may be enforced against the original covenantor and, in most cases, against anyone acquiring an interest from him or her.
Obligations can be used to implement the Borough’s planning policy through
• prescribing the nature of a development (e.g. by requiring a proportion of affordable housing);
• or to secure a contribution from a developer to compensate for loss or damage created by a development (e.g. the loss of open space),
• or to mitigate a development’s impact on the locality (e.g. towards the provision of necessary infrastructure and facilities such as through increased public transport provision).
The outcome of the use of planning obligations should be that the proposed development concerned is made to comply as far as practicable with the Development Plan which comprises published local, regional and national planning policies.
Used properly, planning obligations can significantly increase the quality of development. They can secure benefits capable of mitigating against the adverse impacts of a development. However, they cannot be used to make a bad application good where, for example, a scheme does not comply with the development plan.
Planning obligations are set out in legal agreements made under Section 106 of the Town and Country Planning Act 1990 whereby developers agree to (a) restrict the development or use of land, (b) carry out operations in, on, under or over the land, (c) use the land in a specified way, (d) pay a sum or sums of money towards measures necessary to make a scheme acceptable in planning terms.
The role of planning in this regard is set out in PPS1 “Planning authorities should seek to enhance the environment as part of development proposals. Significant adverse impacts should be avoided and alternative options, which might reduce or eliminate those impacts pursued. Where adverse impacts are unavoidable, planning authorities and developers should consider possible mitigation
measures. Where adequate mitigation measures are not possible, compensatory measures may be appropriate. In line with the UK sustainable development strategy, environmental costs should fall on those who impose them - the ‘polluter pays’ principle.” (Para 19.)
1.2 The role of the SPD
This is the planning obligations SPD for LB Hounslow. It sets out in principle what kinds of planning applications will require planning obligations and in broad terms how monies will be spent on projects related to the proposed development. Alongside this general SPD there are guidance notes on how planning
obligations and financial contributions will be calculated in specific areas. These are:
• Affordable Housing;
• Education Contributions;
• Employment, Training & Childcare
• Community Facilities including provision for young people and Health Facilities.
• Open Space and Play Provision
• Public Realm, Environmental Improvements & Safety
• Transport
The above areas are not exhaustive. LB Hounslow may wish to negotiate other forms of obligations depending on the individual circumstances of a site and proposal, where obligations are necessary and meet the tests set out in Circular 05/2005 “Planning Obligations” and DCLG guidance set out in “Planning
Obligations: Practice Guidance” (DCLG, July 2006)
Planning obligations will be sought to support the implementation of the primary aims and strategic objectives and policies of the Development Plan and where
appropriate to further the strategic aims of the Community Plan and Hounslow Plan.
In conformity with the Circular, the Council will secure planning obligations in respect of measures which are essential for the development to proceed and
measures which are required to mitigate the impact of the development. Development specific works, such as highways works, safety and security measures, and infrastructural requirements, are an integral part of a development scheme and are normally required to be implemented as part of the development scheme. Where necessary, a Planning Obligation will be used to ensure that these development specific works are undertaken satisfactorily. In addition, it will often be necessary for a development to contribute towards the necessary
infrastructure and facilities required in order to contribute to achieving the strategic objectives of the Council.
Priorities
The range of obligations is set out under separate topic headings in subsequent sections within this document with priority given to types of planning obligations taking into account the individual characteristics of the site and the impact of the development.
In determining these priorities, the Council will have regard to Circular 05/2005 and the following:
• Measures which are essential for the development to proceed;
• Measures which are needed to mitigate any impact of the development;
• Measures which are beneficial to the development of the area, in accordance with the Community Plan and Local Area priorities.
Certain strategic schemes toward which contributions may be pooled are referred to in the document. The schemes primarily provide or improve facilities to cater for increased usage and needs arising from residents or users of new
developments in order to achieve the overall aims and objectives of the Council as set out in the Development Plan and Community Plan. Additionally, smaller schemes may be appropriately funded in full or in part by a particular
development.
Status of SPD
This SPD was adopted by the Council on March 11th 2008 and has the status of a Supplementary Planning Document (SPD) for the Council.
An SPD is a material planning consideration to be used in the determination of planning applications. This SPD will form the basis of discussions on planning
applications with, where appropriate, the aim of creating suitable planning obligations. This SPD will be subject to regular review and will be developed alongside the Local Development Framework for the Borough with updates to this SPD published, and progress monitored through the Annual Monitoring Report (AMR).
The SPD aims to meet the three central government objectives for planning obligations of transparency, certainty and speed.
Circular 05/2005 – “Planning Obligations”, states that Planning Obligations have a positive role to play in the planning system and used properly can remedy genuine planning problems and enhance the quality of development. They provide a means of reconciling the aims and interests of developers with the need to safeguard the local environment or to meet the costs imposed as a result of development, for example the full cost of essential community facilities
required as a direct result of a proposed new development.
Examples given in the Circular include new access roads, improved public transport accessibility and community facilities such as open space, social, educational or sporting facilities, provided they are related in scale and kind to the development proposed. The guidance suggests that to retain public
confidence in the planning system, negotiations on planning obligations should be conducted in a way that is seen to be fair, open and reasonable.
Circular 05/2005 enables more systematic approaches and pooling of contributions.
The Planning Bill allows for regulations to empower local councils to apply a
Community Infrastructure Levy on new developments in their areas to support infrastructure. This SPD has been prepared with future changes in mind. The Department of Communities and Local Government published a document setting out further details on the Community Infrastructure Levy (CIL) in January 2008. The document sets out the background to the CIL and more detail on the provisions in the Planning Bill presented to parliament on 27 November 2007. It explains how the Government envisages the CIL will operate, and transitional arrangements until CIL is introduced. The approach within the Planning Obligations SPD will assist with future work on the CIL, if implemented, and if the authority becomes a charging authority when the necessary arrangements are in place.
This SPD does not only cover financial contributions but also benefits in kind negotiated as part of planning applications. In many cases provision in kind is preferable and suitable, especially where this reduces management costs and/or where finding land for a facility is an issue. Where provision in kind is made, contributions will be secured for reasonable fitting out and infrastructure costs
and to ensure that providers of community services necessitated by the
development have facilities suitable for their needs and provided at nominal rents and service charges.
1.3 What types of obligations will be sought?
The obligations set out in this document are not exhaustive, and the local planning authority may wish to negotiate other obligations where they are
relevant and necessary to a particular development. It must be emphasised that planning obligations cannot be used to ‘make a bad application good’. If an application is unacceptable in planning terms and cannot be made acceptable by the provision of planning obligations or the imposition of conditions, the offer of planning obligations will not mean that planning permission will be granted. Paragraphs B.12 to B.16 of Circular 05/2005 “Planning Obligations” outline three main ways in which planning obligations may be used to ensure that proposed developments are acceptable in planning terms and made to accord with published local, regional or national planning policies:
• To prescribe the nature of a development;
• To secure a contribution from a developer to compensate for the loss or damage created by the development;
• To mitigate a development’s impact on the locality;
1.4 Process of Negotiating and Securing Planning Obligations
This document seeks to ensure that the negotiation process is conducted with fairness and consistency and it is intended that the document be used as a clear starting point in the negotiation process. Clarifying the use of planning obligations provides an indication of what the Council may expect from developers and therefore a better framework for discussion.
Legislation sets the timeframes for the determination of planning applications. In order to comply with the legislative provisions, the local planning authority will endeavour to complete the whole application process within the required 8 or 13-week timeframe set by the Government (13 13-weeks for major applications and 8 weeks for non-major applications). In relation to planning applications that require the submission of an Environmental Impact Assessment, the local planning authority will endeavour to determine the application within 16 weeks from the date of receipt of the environmental statement and accompanying documents.
Circular 05/05 emphasises the importance of ensuring that the negotiation of planning obligations does not unnecessarily delay the planning process, thereby holding up development. In cases where a Planning Obligation is required,
planning permission will not be granted until the legal agreement has been completed (or, in relation to a unilateral undertaking, executed and delivered). The applicant will be informed of the target date for determination of the application in the acknowledgement letter issued upon registration of the application.
It is therefore essential that developers enter into discussions regarding planning obligation requirements with Council officers as soon as possible, during the pre-application stage. The nature of planning obligations that are likely to be required for a particular development will be made known to the developer as early as possible in the planning process.
These early discussions help to ensure that formal applications can be dealt with in a more certain and speedy manner and allow for the legal agreement or
unilateral undertaking to be executed and completed as soon as practicable following agreement as to the heads of terms for the requisite planning obligations.
In appropriate cases where section 106 requirements are known, developers are invited to submit draft or executed unilateral planning obligations as part of their planning application.
Where a unilateral obligation is not appropriate, developers are encouraged to submit a draft s106 agreement with their planning application, using the standard legal agreements that have been prepared by the Law Society. Copies of the Council’s preferred forms of standard legal agreements are available from the Council’s Planning department.
Unilateral planning obligations should contain terms that reflect those to be found in the standard legal agreements. The Council will consider and advise upon the terms of submitted Unilateral Undertakings in order to ensure that they are in a satisfactory form, effective for their purposes and enforceable.
It should be noted that the standard form of legal agreements may be amended by the Council as necessary to reflect particular circumstances and best practice. The Council seeks to recover its legal and professional costs incurred in the preparation of legal agreements and unilateral undertakings and the applicant (or developer or other appropriate person) will be required to pay those costs upon demand (these costs are usually payable upon execution or completion of the legal agreement or unilateral undertaking).
Planning permission may be refused in circumstances where the required legal agreement or unilateral undertaking is not completed or executed within the appropriate timescale (i.e. the 8-week, 13-week and 16-week periods referred to above).
1.5 Viability Issues
The Council recognises that in specific instances planning obligations may be a significant factor that affects development viability. However, planning obligations are a necessary cost of development and it will be expected that the likely cost of obligations will be factored into the development cost from an early stage. One aim of this document is to facilitate and encourage transparency in the
negotiation of planning obligations to ensure that developers can gain access to information as early as possible in the development process.
It is recognised that there may be circumstances where a developer may consider that it is not feasible for the proposed development to meet all the requirements set out in local, regional and national planning policies and still be economically viable (for example, where development specific costs are
exceptionally high). The onus will be on the developer to provide information regarding the viability of the scheme. In these circumstances, the Council will review the range and nature of obligations. In order to determine such
applications in accordance with circular 05/05, the Council may require valuation advice and/or the use of an independent third party.
In cases where a dispute relates to the viability of a proposal, it may be
necessary for the independent third party to have access to financial information provided by the developer on a strictly confidential, and open book, basis. The Circular stresses that the role of the independent third party is to facilitate or contribute to the negotiation process, not to arbitrate, and that responsibility for the final determination of the application remains with the local planning
authority. The Council will require its reasonable costs associated with the use of an independent third party or any other necessary valuation advice to be met by the developer.
1.6 Development Plan Policy Context Unitary Development Plan
Hounslow’s overall policy in relation to S.106 is set out in the Unitary
Development Plan 2003 (as saved September 2007) as Policy IMP.6.1 “Planning Obligations”.
The policy states that :
“the Council will seek to ensure that a developer enters into a planning obligation to secure planning benefits related to the proposed
development. The planning benefits of a development will only
a bearing on the planning merits of the application itself and fairly and reasonably relate to the proposed development in scale and kind”. It goes on to give a range of examples, as it is not possible to specify the nature of the planning obligation in every appropriate case. The following are stated for guidance purposes and should not be considered as exhaustive:
• improvement or provision of pedestrian and / or cycle access and associated facilities related to the safe and convenient movement of all pedestrians, people with impaired mobility and cyclists;
• general improvement of, or contribution to, the public transport system, including community transport to provide for journeys related to or generated by the proposed development. (Any such improvement will be carried out in consultation with the public transport agencies);
• provision of buildings, open space, pedestrian or cycle access (e.g. riverside walkways and cycle routes) and other facilities related to the development itself and to the associated movement of people on foot or by bike;
• the provision of buildings and/ or facilities to satisfy the need for additional educational resources which the development may generate;
• conservation and enhancement of buildings or places of historic or architectural interest and areas of nature conservation significance;
• provision of affordable housing or supported residential accommodation to meet local needs;
• the provision of buildings and open space, social and community facilities (including, open space, arts, cultural and entertainment facilities) for which there is a local need;
• the provision of childcare and playspace facilities;
• the improvement of poorer quality employment buildings and the provision of small industrial (starter) units;
• the creation of employment and/or training provisions for those people that have either been displaced by a development project or those who could benefit from the provision of job opportunities locally, thus promoting area regeneration and sustainable patterns of development;
• contributions towards the full cost of providing for provision for any transport access and infrastructure implications of the development, including the need for controlled parking, traffic management schemes and highway access and the production of company travel plans;
• any other planning benefit for which there is a local need, for example environmental improvements to shopping centres, housing and industrial estates, the production of environmental
management schemes for new industrial, commercial and retail development, public art and closed circuit TV (CCTV)
These principles of Policy IMP.6.1 are repeated in central government guidance (Circular 05/2005). Additionally, Policy IMP.6.1 is supported by specific
statements elsewhere in the UDP.
• ENV-N.1.10 - seeks improvements in open space provision in areas of local deficiency;
• ENV-W.1.10 - seeks improvements to access to the Thames riverside;
• H.4.5 - seeks new community, health educational and other facilities from new housing developments;
• C.2.1 - seeks education facilities from residential developments;
• S.4.6 - seeks customer facilities such as baby changing facilities and crèches from major shopping developments;
• T.1.4 - seeks measures to address the traffic impact of new developments;
• T.2.4 - seeks public transport improvements.
The London Plan
The London Plan policies relating to Planning Obligations are Policy 6A.4 and Policy 6A.5. Policy 6A.4, on priorities in planning obligations states
“The Mayor will and boroughs should reflect the policies of this plan and include strategic as well as local needs in their policies for, and negotiation of, planning obligations.” The policy goes on to state “ Affordable housing and public transport improvements should generally be given the highest importance with priority also given to learning and skills and health facilities and services and childcare provisions.
The Mayor, when considering planning applications of potential strategic importance will take into account, among other issues, the content and existence of planning contributions.”
Policy 6A.5 of the London Plan also requires Boroughs to set out a framework for negotiating Planning Obligations.
1.7 Qualifying Developments
The exact type and range of planning obligations, which may be sought for an individual site, will depend upon the particular circumstances and development proposed, and its impact upon the local environment, local services and facilities. Whether or not planning obligations will be sought will be linked to the scale and type of development. The thresholds for types of planning obligations are listed in the table below.
Development is taken to include new development, redevelopment, and changes of use. Thresholds for qualifying developments are based on the total gross development, rather than on the net additional development. The assessment of required planning obligations and the calculation of contributions will take
account of the net impact of the development in order to secure the necessary planning obligations relating to that development.
Where, in the following sections of this document, the term ‘major development’ is used to describe a threshold, this refers to the definition of major development in the Town and Country Planning (General Development Procedure) Order 1995 which is as follows:
• The winning and working of minerals or the use of land for mineral-working deposits;
• Waste development;
• The provision of 10 or more dwellinghouses or where the development is to be carried out on a site having an area of 0.5 hectare or more and it is not known whether the development will have more than 10 dwellinghouses;
• The provision of a building or buildings where the floor space to be created by the development is 1,000 square metres or more; or
Use Planning Need Threshold Type of Contribution
Affordable Housing The threshold contained within the Further Alterations to the London Plan shall be applied to applications: 10 or more units
A specififed type, number, mix and tenure of residential units or, in
exceptional circumstances, payment in
lieu (for details see Affordable
Housing Chapter) Education 10 or more units Financial
contribution (or where appropriate, provision of
educational facilities). Health facilities 10 or more units Provision within
development, or in kind, or financial contribution. Amenity Space 10 or more units (This will normally
be required as provision within development). Provision within development, or in kind, or financial contribution. Play space 10 or more units Provision within
development, or in kind, or financial contribution. Other Sport and
Recreation
10 or more units Provision within development, or in kind, or financial contribution. Residential Public Realm: Environmental Improvements
10 or more units Provision within development, or in kind, or financial contribution.
Employment & Training
10 or more units Provision within development, or in kind, or financial contribution. Transport 10 or more units Provision within
development, or in kind, or financial contribution. Other necessary obligations will be secured depending on the proposal.
Other as required - Provision within
development, or in kind, or financial contribution. Employment and Training Above 1000 sq m gross floorspace or based on likely number employed Training measures related to the development, or financial contribution. Public Realm: Environmental improvements All developments resulting in an increase of 1000 sq m. gross external floor area or number of those employed. Provision within development, or in kind, or financial contribution. Transport Above 1,000sq m GFA Provision within development, or in kind, or financial contribution. Childcare provision Above 1,000 sq m
gross new or improved floorspace Provision within development, or in kind, or financial contribution including off-site provision. Office B1
Other as required - Provision within
development, or in kind, or financial contribution.
Employment and training Above 1,000 sq m gross or based on likely number employed Provision within development, or in kind, or financial contribution. Public Realm: Environmental improvements, CCTV All developments resulting in an increase of 1000 sq m. Provision within development, or in kind, or financial contribution. Transport 1000 sq m and above GFA Provision within development, or in kind, or financial contribution. Industrial, B2, B8 Other as required
Childcare provision B2 1,000 sq m GFA B8 1,000 sq m GFA Provision within development, or in kind, or financial contribution including off-site provision. Public realm: Environmental improvements All developments resulting in an increase of 1000 sq. m gross
external floor area or number of those employed. Provision within development, or in kind, or financial contribution.
Transport 1000 sq m GFA Provision within development, or in kind, or financial contribution.
Retail
Other as required As required Provision within development, or in kind, or financial contribution.
Where development sites are subdivided or developed in phases and this has the effect that separate development proposals (within a larger development site) fall below thresholds for which planning obligations may be sought the Council will (as far as is practical and reasonable) consider sites in their totality when assessing the appropriate necessary planning obligations.
In some cases, where outline permission is applied for, it will not be clear whether the thresholds will be exceeded. In these cases obligations may be
negotiated on the presumption that the site exceeds the relevant threshold. Legal agreements (or unilateral undertakings) should be worded to allow for increases in some or all of the required obligations subject to the detail of the application when considered at the reserved matters stage, or for an alternative approach in the event that at the reserved matters stage it becomes apparent the threshold will not be met.
1.8 Standard Charges
The government, through Circular 05/05, encourages the use of standard
charges and formulae to calculate financial contributions, where appropriate and where used consistently. The use of standard charges can give greater certainty to developers and increase the speed of negotiations.
There will continue to be a presumption in favour of the on-site provision of benefits sought by planning obligations and the Council will normally expect the developer to carry out the works. However, where it is not possible or practical to provide these benefits on-site, or where a development is required to contribute towards strategic infrastructure or facilities, a financial contribution will be sought towards the provision of these benefits offsite.
The Council will adopt a consistent approach to the application of standard charges in order to ensure fairness, predictability and transparency. In all cases, Hounslow Council as the local planning authority reserves the right to enter into negotiations specific to part or all of a proposed development should this be appropriate. Negotiated planning obligations will normally be required for large and complex developments. In such cases, the standard charges may act as a starting point for negotiations.
In cases where individual developments will have some impact but not sufficient to justify the need for a discrete piece of infrastructure, contributions may be sought from developers towards future provision where the combined impact of a number of developments does, may or will create a need for infrastructure. In such cases Circular 05/05 advises that spare capacity in existing
infrastructure provision should not be credited to earlier developers. The Council will adopt this approach, in order to ensure that the negotiation of planning obligations is consistent and fair to all developers, and will continue to take into account any relevant circumstances in each case to ensure that any negotiations for planning obligations comply with Circular 05/05.
For developments staying within the same Use Class the floorspace or units which already exist on the site may be subtracted from the obligation calculation so that the net additional impact is assessed, subject to the actual level of need that arises from the development proposal. For changes of use, separate calculations may need to be made for the proposed use, and the existing use, and the actual obligation sought will be assessed with reference to the difference
between the two (except that a ‘negative’ contribution will not be allowable). There will be cases, such as where a site involves comprehensive
redevelopment, or where a site is vacant or derelict, where the total gross size of the development will be relevant for determining the amount of contribution or the nature of the planning obligation required and no ‘credit’ will be allowable, subject to considerations regarding viability.
Each case will be considered on its merits to ensure that any obligation sought is sufficient to ensure that the proposed development is acceptable in policy terms and that the policy tests of Circular 05/05 are met.
Please note that for formulae that are based on gross floor area (GFA), the relevant formulae will be applied on a pro-rata basis for GFA above the thresholds.
1.9 Pooling of Funds
As set out in Circular 05/05, where the combined impact of a number of developments creates the need for infrastructure or facilities, associated developers’ contributions can be pooled, in order to allow the required infrastructure to be secured in a fair and equitable way. In some cases, individual developments will have some impact but not sufficient to justify the need for a discrete piece of infrastructure, and local planning authorities may wish to consider whether it is appropriate to seek contributions to specific future provision. The Circular makes it clear that, in these cases, any spare capacity in existing infrastructure should not be credited to developers.
Similarly, where an item of infrastructure necessitated by the cumulative impact of a series of developments is provided by a local authority or other body before all the developments have come forward, the later developers may still be required to contribute the relevant proportion of the costs.
In cases where a financial contribution is sought towards offsite provision, funds may be pooled to contribute towards the strategic aims of the Development Plan and the Community Plan, that would lessen the impact (or enhance the benefits) of new developments in the area and help integrate the developments into the local community. Some schemes are Borough-wide whilst others are local. In accordance with Circular 05/05, in the event that contributions are made towards specific infrastructure provision but the infrastructure is not provided within an agreed timeframe, the local planning authority will consider entering into an agreement in order to modify or discharge the specific planning obligation and where this has been done and in appropriate cases, arrangements will be made for contributions to be returned to developers.
1.10 Maintenance
Circular 05/05 provides scope for seeking revenue or maintenance payments. The Circular advises that where contributions are secured through planning obligations towards the provision of facilities that are predominantly for the benefit of the users of the associated development, it may be appropriate for the developer to make provision for their subsequent maintenance. As a general rule, where an asset is intended for wider public use, the
costs of subsequent maintenance and other recurrent expenditure associated with the developer’s contributions should normally be borne by the body or authority in which the asset is to be vested.
Initial support (pump priming) of new facilities can be sought where necessary, however payments should be time-limited and not be required in perpetuity by planning obligations. The Council will seek maintenance payments where necessary and appropriate for ‘pump priming’, and for facilities which are primarily intended for the use of residents of a development or for local use, in line with the latest government guidance. Maintenance payments will not be sought for facilities which are intended to serve the wider public.
1.11 Costs
The Council will expect its reasonable legal and professional costs and disbursements incurred in negotiating and drawing up legal agreements or
unilateral undertakings to be met by the developer (or other appropriate person). In addition, the Council will require that the developer (or other appropriate
person) meet its reasonable costs in administering and monitoring the obligations contained in the legal agreement or unilateral undertaking. The Council will use its best endeavours to specify these costs at the earliest possible opportunity in the application process.
Where valuation advice is required in order to assess the application, or in cases where a developer has raised concerns about viability of a development, the Council will expect all reasonable costs of valuation advice to be met by the developer. In these cases, where other professional advice is required, for example environmental, traffic, or ecological advice, the Council may seek its reasonable costs in seeking such advice to be met by the developer.
1.12 Confidentiality
In compliance with the guidance contained in paragraph B42 of Circular 05/05, the Council will comply with its statutory duty to record in Part 1 of the planning register details of proposed planning obligations and those planning obligations that have been entered into.
Requests for the release of s106 agreements whilst in the negotiation stage will be referred to the Council’s legal department for advice. Once signed, the legal
agreement will be registered against the title of the property and on the Local Land Charges Register, and is available on the statutory planning register, and is therefore in the public domain.
1.13 Referrals, call-ins and appeals
The Mayor of London must be consulted on planning applications that are considered of potential strategic importance. He can comment on and support these applications or, if he considers it necessary on strategic planning grounds, he can direct the borough to refuse planning permission if he is not satisfied that the proposed conditions and obligations will, in his opinion, make the
development acceptable in planning terms. The applicant has the right then to appeal to the Secretary of State and at that stage the Mayor may state what obligations should be included in a legal agreement/unilateral undertaking. Further changes to the Mayor’s powers will be taken account of through applying the provisions of this SPD.
Planning applications may be appealed, or the Secretary of State may call-in an application for his determination. In such cases, the Council will be unable to negotiate a planning obligation, as the Secretary of State/Planning Inspectorate will decide this. However, the developer can submit a unilateral undertaking and the Council will, in cases where the development would be acceptable if planning obligations were secured, seek to negotiate with the developer and would set out the nature of the planning obligations which would be sought.
1.14 Use and Monitoring of s106 Legal Agreements and Unilateral Undertakings
It is important that developers entering into planning obligations know where, when and how their money will be spent.
Planning obligations may be tied to specific schemes where they are necessary to overcome a planning objection to a development. In cases where planning obligations are sought from a number of smaller developments and pooled towards the provision of a scheme, wherever possible, developers will be informed of the projects that their contributions will be likely to help fund. Potential benefits towards which funds may be used are listed in the relevant sections of this document.
Contributions and interest accrued will be allocated to the implementation of projects in the vicinity of the site in a way that accords with the guidance in Circular 05/2005 “Planning Obligations”.
The appropriate Committee must agree expenditure of developer contributions for the development and implementation of major strategic projects for affordable
housing, education, employment generation and transport. Expenditure of developer contributions for local projects is considered as part of an annual rolling programme of section 106 projects to be determined by the Area Committees.
In this way both Elected Councillors and the public are able to see that the expenditure is appropriate, properly justified and that it meets the requisite legal tests.
A section 106 database is maintained, and incorporates a range of information in relation to planning obligations and unilateral undertakings including details of development site, relevant dates for receipt of funds, the purpose of the obligation and level of funding and whether there is financial approval for the expenditure of funds. Developers or interested parties are welcome to contact the Council to enquire as to the use and status of planning obligations.
1.15 Local Land Charge
Planning obligations are registerable as a Local Land Charge and as such would come to the notice of a prospective buyer of the land. The Council will require that they will also be registered against the title to the land.
1.16 Index Linking
Contributions sought from developers will be index linked in the legal agreement, in order to maintain the value of the contribution. The Retail Price Index (RPI) is the most commonly used index of inflation. It is freely available without
subscription. The Building Cost Information Service (BCIS) published by the Royal Institution of Chartered Surveyors (RICS), and the Building Price and Cost Indices published by the Department of Trade and Industry (DTI) are alternative indices. The Council will use the most appropriate of this set of indices.
The Council will also review all or parts of this document from time to time in order to update the value of the contributions sought.
Planning Obligations SPD - Affordable Housing
2.1 Introduction
Ensuring the delivery of affordable housing is long established as an integral part of Government policy. However, in recent years the manner of delivery has changed significantly.
A significant amount of affordable housing is now delivered through Registered Social Landlords (RSLs) and through the application of planning policies
requiring the negotiation of a proportion of affordable housing as part of housing developments.
The provision of affordable housing contributes towards sustainable local
communities. People on different income levels all need a choice of where they can live, close to family and community networks and accessible to workplaces. Provision prevents areas of social exclusion, for example where people can only afford to live in areas of poor access to transport, social, health and educational facilities. Affordable housing supply also allows workers with a range of skills and income levels to live reasonably close to their workplace and is also
important for the economy. Similarly, in reducing travel distances to workplaces, road congestion and associated environmental problems can be reduced.
This section of the SPD explains Hounslow Council’s approach to the delivery of affordable housing. It is supplementary to, and expands upon the Development Plan policies for affordable housing in Hounslow,. It explains in detail how the policies will be applied and provides additional information on what will be expected when dealing with planning applications for development for which an element of affordable housing should be provided.
This section provides information for various stakeholders involved in providing affordable housing including developers, RSLs, landowners and interested parties and individuals, so as to ensure the effective application of the Development Plan’s affordable housing policies.
2.2 The Need for Affordable Housing
There is a well-established justification for ensuring an adequate supply of
affordable housing. As with all London boroughs and other Councils in the South East, Hounslow Council continues to experience a significant gap between affordable housing supply and demand.
A Housing Needs survey was carried out in 2001.. The survey confirms the high levels of affordable housing need in Hounslow, and further monitoring also bears this out.
The lack of affordable housing in Hounslow is clearly demonstrated by the numbers of households on the Council’s Housing Register and by the number of homeless households. Nearly 1,000 households a year are accepted as
homeless in Hounslow.
It is estimated that 84% of households in the Borough could not afford to buy their own home at prices in January 2006. This is linked to average house prices in the Borough, which increased by 10.7% from the period Oct - Dec 2005 to Oct – Dec 2006.
The Hounslow Housing Needs Survey 2001 assessed housing need with reference to Borough property prices in the 2000/2001 period. The results of the survey identified that 100% of households identified as in need of affordable housing cannot afford rental or mortgage payments in excess of £112 per week for 1-bedroom accommodation. The results of the survey also identified that 100% of households in housing need cannot afford rental or mortgage payments in excess of £137 per week for 2-bedroom accommodation or £162 per week for 3-bedroom accommodation.
The West London sub-region also continues to experience higher housing need than any other London sub-region due to a combination of high land/property values and a growing population. The need for additional housing throughout London is well documented in the London Plan. This estimates that at least 10,000 new affordable homes are required in West London for the period up to 2016. There is also a very high demand for larger family units.
Additionally, House prices have risen considerably throughout recent years. The increase in house prices in Hounslow is broadly similar to the increase for
London over the same period. It is above the national average. The average price of a home in Hounslow is still below the London average. However, the rate of growth means that the people we need for the economic wellbeing of the Borough are not able to afford to buy homes in the Borough.
Table 1: Average House Price (all dwellings)
Hounslow Greater London England and Wales Oct – Dec 2005 £257 823 £289, 248 £191, 327 Oct – Dec 2006 £288, 768 £321, 971 £207, 573 Percentage Change
+ 10.7% + 10.2% + 7.8%
Incomes have failed to match this trend in house price rises. Between 2002 and 2005 average incomes in Hounslow rose 13% while over the same period average house prices rose by 37%. This is an indication of how housing is becoming increasingly unaffordable.
As part of the Core Strategy of the emerging LDF, Hounslow Council will
undertake a new Housing Needs Survey in line with latest government guidance to further inform the nature of housing need in the Borough.
2.3 Development Plan
The policy context for affordable housing continues to be updated with new research and policy direction from the different levels of government. The publication of the Planning Policy Statement 3 (PPS3) – Housing and the
accompanying Delivering Affordable Housing (November 2006) and The Further Alterations to the London Plan (February 2008), as well as Housing – The
London Plan Supplementary Planning Guidance provide the indication of the Government’s and Mayor’s policy
This SPD provides the opportunity to amplify on these policieswhile taking account of up-to-date national and regional government policy such as the Further Alterations to the London Plan (February 2008).
The Housing Needs evidence shows that there is a need for large family housing for rent. The Council will calculate the proportion of affordable housing provided either in units, habitable rooms or floorspace, so as not to discourage the
development of larger units suitable for family accommodation. For monitoring purposes both units and habitable rooms will be measured to assess the delivery of affordable housing in the Borough.
Any attempt to circumvent the threshold set in the development plan, for which the maximum reasonable proportion affordable housing shall be negotiated, is likely to lead to refusal of the application.
2.4 Definition of Affordable Housing
One of the purposes of this SPD is to clarify the definition of what constitutes affordable housing in the Borough. This SPD provides the following definition of affordable housing:
“Affordable housing is housing that is accessible to those people whose
incomes are insufficient to enable them to afford adequate housing locally on the open market. It includes social rented housing and intermediate housing;
Social Rented is affordable housing where the cost to the occupier is equivalent to the cost of Registered Social Landlord accommodation, of similar size and quality, within the borough. Rents are no greater than target rents as set by Government for local authority, RSLs and co-operative tenants;
Intermediate Housing is affordable housing where the cost to the occupier, in terms of weekly outgoings, is significantly below the maximum affordability levels contained in this SPD .
Intermediate housing can be provided for sale or for rent. Key worker housing is also considered to be intermediate housing as long as it complies with the
Council’s affordability criteria. Intermediate housing can also include Low Cost Market Housing, but only where it can be shown that it meets the identified priority needs, fulfils the affordability criteria and can be held in perpetuity (this requirement ensures that it remains affordable but applies subject to any
statutory requirements or other material considerations that the Council may in its sole discretion determine may apply).
Close attention needs to be paid to the costs involved before any form of market housing could be defined as affordable.”
Proposals made over recent years to provide Low Cost Market Housing, typically by discounting the market price, have not met policy requirements as set out in the definitions above. They have not been affordable to people on incomes in the range £17,000 – £52,500 and they have not been made available ‘in perpetuity’. Recently published advice from the Government contained in New Planning Policy Statement 3 - PPS3 supports this assessment that, due to the acuteness of the housing affordability problem in Hounslow, low cost market housing is unlikely to address any housing needs in the Borough.
It is therefore considered that, in practical terms, affordable housing in Hounslow is housing that can be rented or bought by the occupier at a price substantially below the market rate. This will mean that a level of subsidy will be required to enable the housing to be acquired at a submarket rate. This can be in the form of public subsidy such as Social Housing Grant secured from the Housing
Corporation, a financial contribution from a developer, or other subsidies such as the provision of land at a discounted rate.
Affordable housing needs to be accessed in accordance with the priorities determined by the Council. For this reason the Council will nominate the occupiers of affordable housing from either the Council’s housing register
through the Locata system or the Council’s Low Cost Home Ownership Register. The occupation of affordable housing by those in need and the affordability of the property will be secured in perpetuity through legal agreement or unilateral
undertaking, subject to any statutory requirements or material considerations that the Council may in its sole discretion determine may apply.
2.5 Social Rented Housing
In accordance with the Mayor’s definition, Hounslow Council defines Social Housing as: Housing that is affordable in that rents are no greater than target rents as set by Government (DCLG) for local authority and RSLs and
co-operative tenants. Service charges should not be so great as to make a tenancy unaffordable for a household with an income of less than £17,000 on the basis of rents and service charges not exceeding 30% of net household income. Social Rented Housing needs to be available for rent on a long-term basis.
The Council seeks to ensure Social Housing is let and managed by an RSL. Any other arrangements will need to satisfy the Council that equivalent management and standards will be secured.
2.6 Intermediate Housing
Intermediate housing is housing where the costs are greater than target rents (see Social Rented Housing, above) but affordable to households that have incomes in the range £17,000 and £52,500 per annum (at the time of production of this SPD).
Shared ownership – also known as New Build HomeBuy
Shared Ownership housing is a form of intermediate housing. This is a low cost home ownership scheme where an applicant acquires a property from an RSL on a part rent -part buy basis.
The applicant raises a mortgage in the normal way to buy a share of the property and pays subsidised rent – capped to no more than 3% - to an RSL on the
remaining share. The applicant can increase their share in the property as their finances improve if they wish, until they own the property outright.
Shared ownership will need to be affordable to households with annual incomes of £17,000 – £52,500 (at the time up SPD production).
The homes will be offered to applicants on the basis of housing need in accordance with the priorities determined by the Council within key worker housing policy available from the Housing Enabling Team..
Intermediate Rent
Intermediate rent is a form of intermediate housing that allows households to rent properties above target rent levels but below market rent levels. As with shared ownership the rents must be affordable to those with annual household incomes of £17,000 to £52,500 (at the time of production of the SPD). This income range puts the cost above social housing but below market housing. Intermediate Rent is made available on Assured Shorthold Tenancies, but can be long-term
To be affordable intermediate rent should be set at no more than 80% of the market rent for the type of units in the area where the scheme is located. This will be considered on a case-by-case basis as proposals arise. For advice on
intermediate rents in new developments, contact the Hounslow Council Housing Enabling Team.
In instances where provision is through any other organization than an RSL arrangements will need to satisfy the Council that equivalent management and standards will be secured.
2.7 Key Worker Housing
The high cost of housing is a contributing factor to recruitment problems for workers on low-to-moderate incomes in London. The Government’s Key Worker programme seeks to help address these problems. A number of units secured as Intermediate housing in Hounslow are available to key workers under this
scheme.
Funding for the Key Worker scheme is allocated by the Housing Corporation on a sub-regional basis. The units are offered to key workers as defined by the
Government.
Hounslow Council accepts a wider range as being eligible for key worker housing, reflecting documented recruitment and retention problems in the Borough. As well as those units that are allocated under the Government’s Key Worker scheme, some of the other intermediate housing may be set aside by the Council for key workers that qualify according to Hounslow’s criteria. Hounslow’s Housing Enabling Team can be contacted for further information on the local definition of a key worker: “Any person living or working in Hounslow on a moderate income”.
2.8 Affordable Housing Requirements
Mix Between Social and Intermediate Housing
The Council seeks a 70:30 ratio between Social Rented Housing and
Intermediate Housing tenure for affordable housing delivered in the Borough. As with the amount of affordable housing, the mix between Intermediate and Social housing for a development will need to be established at the time of application. This should be agreed with Hounslow Council officers at the pre-application stage. The Council will usually seek the target 70:30 mix on developments for which DEVELOPMENT PLAN Policy applies.
There may be instances, however, when the Council accepts that an alternative mix between Social and Intermediate housing is appropriate.
Should the Council consider that the proposed mix between Social and
Intermediate housing is not acceptable, permission for the development may be refused.
Mix of Units and Space Standards for Social Housing
The Council seeks to ensure that the mix of dwellings, types, sizes and tenures in large housing developments and this applies to qualifying affordable housing schemes.
Accordingly, targets for the following mix of units by bedroom numbers/people accommodated for and minimum space standards have been set for Affordable Housing. These targets will be monitored and adjusted over time to allow for updating.
DWELLING MIX (SIZE AND TYPE) BY TENURE Social rented provision
1 bed (1/2 persons) 24% 2 bed (3/4 persons) 34% 3 bed (4/5/6 persons) 30% 4 bed (6/7/8 persons) 10% 5 bed (8/9/10 persons) 2% 100% Intermediate provision 1 bed (2 persons) 50% 2 bed (3 persons) 24% 2 bed (4 persons) 17% 3 bed (5/6 persons) 9% 100%
Note: A minimum requirement of 10% cross-tenure for wheelchair provision.
The units by bedroom numbers target is similar to the West London target and reflects the housing need of the Borough, and the Hounslow Plan. The Council will seek, while taking account of a site’s characteristics, the above mix of housing types for all affordable housing developments.
The Council wishes to ensure that new affordable housing is fit for purpose now and in the future. The need to maximise land use through higher density housing, often in flatted developments with limited amenity space, means that internal space standards are now more important to ensure sustainability and livability into the future. In order to address these issues the Council adopts the Housing Corporation design requirements, and Eco Homes Very Good rating, as well as the Housing Quality Indicator minimum standards.
The Council will work with developers and RSL partners to deliver new social housing at these target space standards. In doing this consideration will be given to the specific circumstances of each scheme. For example where there is a good level of external amenity to meet the needs of a wide age range of children it may be acceptable to consider space standards not below the minimum of the Housing Quality Indicator standards.
The Council seeks the provision of larger family units (3 bedroom plus) for intermediate housing on sites, providing they are affordable according to the criteria set out in this chapter. The Council seeks to ensure that intermediate housing is demonstrably affordable for its residents.
Accordingly, it will seek the provision of a range of intermediate housing rents or prices to meet the full range of those in need of intermediate housing. Analysis of the Council’s register has been used to establish the income levels of those registered in the Borough and a range of products to meet the different income ranges is appropriate.
All targets are relevant at the time of production of the SPD and will be revised as circumstances dictate. In considering what is affordable to intermediate
households the Council regards that no more than 40% of a household’s net annual income should be allocated towards housing costs (including service charges).
2.9 Negotiating the Maximum Reasonable Proportion of Affordable Housing
The Council will seek the maximum reasonable proportion of affordable housing on qualifying sites. In accordance with the Development Plan the initial basis for negotiations is that 50% of all housing should be provided as affordable housing. Should an applicant propose a lower proportion of affordable housing a financial appraisal will be required in order to demonstrate the maximum reasonable proportion for the specific site. The Further Alterations to the London Plan (policy 3A.8i) encourages Boroughs to seek a lower threshold through the DPD process where this can be justified in accordance with government guidance.
One method for which proposed developments may be assessed in Hounslow is through the use of the Development Control Toolkit developed for the Greater London Authority (GLA) by Three Dragon’s Consultants and Nottingham Trent University. Although it is recognised that a methodical approach to projecting costs and profits will never be perfectly accurate, in the interests of objectivity and consistency of analyses, the Development Control Toolkit is publicly available and therefore is recommended as a tool to inform the negotiation process.
