Affordable Housing Requirements

Policy HO.3 Affordable Housing Requirements A. Thresholds All new residential development proposals, including for Self-Build and Custom- Build, will be required to contribute to the provision of Affordable Housing where it meets or exceeds the following thresholds: • In Designated Rural Areas development providing 2 or more dwellings OR with a site area of 0.5 hectares or more. • In all other areas development providing 10 or more dwellings OR with a site area of 0.5 hectares or more. Where demolition of existing dwellings forms part of a development, the thresholds will apply to the net increase in the number of dwellings. This does not change the site area threshold. B. Requirement Where a development meets or exceeds the thresholds identified in Part A of this policy provision must be made for the following proportions of Affordable Housing: • Zone 1: o On sites within the Green Belt or to be released from the Green Belt, or in the Cotswolds National Landscape a minimum of 50% affordable housing provision. o In all other areas a minimum of 40% affordable housing provision. • Zone 2: o On sites within the Green Belt or to be released from the Green Belt , or in the Cotswolds National Landscape a minimum of 40% affordable housing provision. o In all other areas a minimum of 30% affordable housing provision. Where the percentages above result in a fractional requirement and delivery is expected onsite in accordance with Part C of this policy, the requirement will be rounded to the nearest whole number. Consideration will be given to the viability of any scheme subject to robust evidence being provided by the applicant. C. On-site Provision On schemes proposing 10 or more new dwellings affordable housing will be expected to be provided on site. Off-site provision or a financial contribution will only be permitted where exceptional circumstances have been demonstrated to the Council’s satisfaction. The alternative form of provision will be equivalent or better in all respects to the affordable housing were this to have been provided on-site On schemes proposing fewer than 10 new dwellings (except for rural exception sites) a financial contribution towards off-site affordable housing will be required. For Self and Custom Build development the same requirements apply. D. Delivery All new Affordable Housing must be made available at a cost low enough to be affordable to households whose housing needs are not met by the market, taking into account local housing costs and local incomes. All Affordable Housing must comply with the NPPF definition and include the provision for homes to remain at an affordable cost for future eligible households or, exceptionally if relevant restrictions are lifted, for the subsidy involved in their development to be fully recycled for alternative affordable housing provision in South Warwickshire. Applicants must demonstrate that any on site affordable housing is deliverable. All Affordable Housing must have regard to any guidance issued by either Council in respect of Affordable Housing. Policy HO.3 ~ Development Management Considerations Zone 1 is defined as Housing Market Value Zones A and B as shown below. Zone 2 is defined as Housing Market Value Zones C and D as shown below. Where a site straddles the boundary between the two zones, the higher rate will apply. Source Aspinall Verdi Local Plan Viability Study (July 2026) Details of which parishes in South Warwickshire are ‘Designated Rural Areas’ are available in the Appendix 4. The requirement to deliver affordable housing applies to all new residential development involving self-contained accommodation, including self-build schemes, except for the following: • Ancillary accommodation and residential annexes (e.g. a manager’s flat in a care home); • Holiday accommodation (subject to suitable planning restrictions); • Homes with agricultural occupancy restrictions; • Homes with temporary planning permission; • Mobile homes; • Pitches for Gypsies and Travellers and plots for Travelling Showpeople; With reference to the delivery of Affordable Housing, the Councils will apply the definition from the NPPF or any successor document. Further, it is expected that any Affordable Housing proposed will be secured in perpetuity via a Section 106 legal agreement. This will ensure the Affordable Housing remains available for future eligible households. The Councils may also release guidance on Affordable Housing from time to time and it is important that this guidance is considered by applicants bringing forward schemes. Policy Justification 5.2.2 The need for Affordable Housing within South Warwickshire was considered in the Strategic Housing Market Assessment 2026 (SHMA). This identified a net need for 1237 affordable dwellings per annum (dpa) across South Warwickshire, with the need being slightly higher in Stratford district (668dpa) than Warwick district (569dpa). This represents approximately 56% of the total housing need of South Warwickshire (2197dpa), calculated using the government’s standard method. 5.2.3 Given the significant need for affordable homes, it is important the Councils maximise their delivery across South Warwickshire. For this reason, the Councils have chosen to apply two thresholds from which affordable housing will be required on residential developments, depending on location. 5.2.4 The default threshold applied across South Warwickshire requires affordable housing on schemes of 10 or more dwellings, in accordance with the NPPF Paragraph 65. This threshold has been tested through the whole plan viability appraisal and has been found to be deliverable. 5.2.5 The second threshold applies to residential developments in ‘Designated Rural Areas’ as defined by the Housing Act 1985. The rural nature of these areas means it is less likely housing schemes of 10 units or more will be developed, but nonetheless it is important to provide affordable housing to support rural communities. This lower threshold and the financial contribution that applies (see below) have been tested through the whole plan viability appraisal and found to be deliverable. 5.2.6 The amount of affordable housing required on a site also depends on its location. Though the SHMA found a need for 56% of new homes to be affordable, this proportion was not found to be deliverable through the whole plan viability appraisal. The technical evidence shows a mixed viability picture and as such, the SWLP adopts a flexible approach. Based on the housing market value zones, different affordable housing requirements are set across South Warwickshire. It is acknowledged that these may be challenging in the short-term, and as such, the requirements are subject to viability. It is acknowledged that higher requirements are sought in Grey Belt and Cotswolds National Landscape areas. As such, the figures are expressed as minimums. The approach to affordable housing for the strategic sites is set out in Policy DS.4. 5.2.7 In respect of how affordable homes should be provided, NPPF Paragraph 64 is clear that where a need for affordable housing is identified, this need should be met on- site unless off-site provision or an appropriate financial contribution can be robustly justified and contributes to creating mixed and balanced communities. 5.2.8 The Local Planning Authorities are however concerned that requiring on site delivery of affordable homes where the lower threshold applies in Designated Rural Areas could act as a barrier for development due to the small numbers of units that would come forward and challenges around securing a Register Provider to buy the units. To overcome this issue a financial contribution is required for affordable housing on sites of fewer than 10 units instead of