Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 11
11
Deferred
Site-specific viability assessments frequently reduce affordable housing requirements unjustifiably.
Conclusion
Too often, site-specific viability assessments are used by developers to negotiate down affordable housing requirements in circumstances where this is completely unjustifiable. Affordable housing contributions are frequently the first provision to be cut following a viability assessment, even where a developer may be making other significant contributions through Section 106 agreements and CIL. In areas with high land values, viability assessments should only be used in this way in very exceptional circumstances. Currently, not all local authorities have their affordable housing requirements clearly set out in local policy. Greater clarity from local authorities would provide developers with the right incentives to avoid lengthy viability negotiations, and ensure more applications are meeting local affordable housing requirements from the outset. (Conclusion, Paragraph 70) 63
Government response summary AI-generated
The government deferred responding to the point about site-specific viability assessments until Spring 2026, when it plans to issue a full response to the New Towns Taskforce’s report.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Deferred
HM Government · verbatim extract
Deferred
The Government is committed to delivering the biggest increase in social and affordable housing in a generation. The revised NPPF published in December 2024 is already clear that LPAs should assess the size, type and tenure of housing needed for different groups in the community, including those who require affordable housing, and reflect this in planning policies. This includes setting out the mix of affordable housing required on major development, which should reflect identified local needs. In December 2024, we updated the framework to make clear that authorities should consider the particular needs of those who require Social Rent homes, and specify the minimum proportion of Social Rent homes required of developments. The Government has since updated the Planning Practice Guidance (PPG) in December 2025 on viability to support this position. As part of the consultation on the revised NPPF which launched in December 2025, we are seeking views on whether requiring a national minimum proportion of Social Rent homes would better support delivery of Social Rent. In addition, our draft policies on developer contributions and viability consider instances where developer contributions are reduced below the requirements set out in relevant plan, and encourage the appropriate use of review mechanisms to maximise policy compliance over time. More broadly, our proposed changes – including to standardised inputs into viability assessments – aim to promote greater clarity about expected contributions, including those related to affordable housing, and the limited circumstances in which site-specific viability assessments may be justified.
Read the full response on Parliament ↗