Build to Rent

basis. Policy HO.7 Build to Rent Proposals for the development of Build to Rent housing will be supported where they are in accordance with the Spatial Growth Strategy and other policies within this Plan and where they comply with all of the following criteria: 1. The proposal provides high quality housing that contributes positively to the provision of mixed and balanced communities, 2. The development is under unified ownership and unified management, 3. The development will provide on site management, 4. All the dwellings are self-contained and let separately, 5. The homes will be secured as part of a Section 106 agreement, which should include the process for the management and letting arrangements, covenants the build to rent homes are held under and any clawback arrangements. 6. Affordable homes on a build to rent scheme should be provided as Affordable Private Rent. The Affordable Private Rent units must be let to those whose needs are not met by the market and eligibility criteria for these units will be set out in the Section 106 agreement. The amount of Affordable Private Rent units should be in accordance with Policy HO.3. HO.7 ~ Development Management Considerations In relation to criterion 1 of the Policy ~ this is intended to ensure schemes provide high quality housing and contribute to sustainable communities. Whilst this policy supports Build to Rent developments, this is in the context of providing a range of tenures to suit the diverse needs of residents. The Local Planning Authorities are keen to avoid an excessive concentration of Build to Rent developments in one location if this would undermine the creation of sustainable communities. The scale and location of a proposed Build to Rent scheme along with the tenure profile of the surrounding development (both existing and consented schemes) will be taken into account when considering this criterion. In relation to the second and third criteria ~ these requirements are in line with the NPPF definition for Build to Rent and applicants will be expected to provide information to demonstrate compliance as part of an application. These matters will also be controlled through a S106 agreement. The market and affordable units should be owned and managed by the same organisation. In relation to the fourth criterion of the Policy ~ self-contained accommodation is defined as accommodation with private kitchen, bathroom, living and sleeping facilities all located behind a private, lockable front door. A S106 agreement will be used to control the requirements identified in the policy. This includes provisions for how the scheme will be managed and how dwellings will be let. The agreement will also cover the requirement for a covenant to retain the dwellings as rental units and any clawback arrangements should the units be sold prior to expiration of the covenant period. Further guidance on covenants and clawback procedures, including a formula to calculate any clawback sum, is available in national guidance. For affordable housing, the NPPF explains that on Build to Rent schemes the affordable units should be provided as Affordable Private Rent. This tenure does not require the involvement of a Registered Provider of Social Housing however the affordable units must be under the same management and ownership as the open market units. The minimum rent discount for Affordable Private Rent is 20% relative to local market rent (inclusive of service charges). Applicants should have regard to local and the Local Housing Allowance rates when setting the rent levels for Affordable Private Rent. Eligibility criteria for the affordable units will be set in the S106 agreement. The affordable units should be fully integrated into the development and indistinguishable from the market units. Policy Justification 5.3.9 The NPPF defines Build to Rent as ‘Purpose built housing that is typically 100% rented out. It can form part of a wider multi-tenure development comprising either flats or houses, but should be on the same site and/or contiguous with the main development. Schemes will usually offer longer tenancy agreements of three years or more, and will typically be professionally managed stock in single ownership and management control’ . 5.3.10 NPPF Paragraph 63 explains that the housing needs for different groups in the community, including those who rent their homes, should be assessed and reflected in planning policies. 5.3.11 The Strategic Housing Market Assessment (SHMA 2026) considered the need for Build to Rent units and found that whilst it was not possible to quantify the exact need for Build to Rent units in South Warwickshire, it would be appropriate for the Plan to offer broad support to Build to Rent developments and provide a framework for supporting schemes. This policy aims to fulfil thi