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
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.
Government Response
Deferred
HM Government
Deferred
59. A full Government response to the New Towns Taskforce’s report is planned for Spring 2026 which will contain more information on financing models. Each location will have differences in size, geography and infrastructure needs which will influence the financing models used. The Department is exploring different financing models used previously, such as in London, to determine the best approach. 60. The Government’s English Devolution and Community Empowerment Bill will give new powers to Mayoral Authorities to raise revenue to enable them to fulfil their strategic priorities. Government will continue to work with LAs to build their capacity for managing more complex financial instruments.