Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 12
12
Accepted
Update national policy to encourage minimum affordable housing targets in Local Plans.
Recommendation
As part of its ongoing review of the viability planning practice guidance, the Government must consider how different types of developer contribution could be re-negotiated following a viability assessment, to protect affordable housing contributions. The Government must also update national policy to encourage all local authorities to set a minimum percentage target for affordable housing in their Local Plan for all major developments that include housing. This figure should be based on a local need assessment for affordable housing in each local authority, with particular regard for the local need for Social Rent homes. Local authorities should be encouraged to offer a ‘fast-track route’ for developments which meet the local affordable housing target, by making those developments exempt from detailed viability assessments and re-assessments later in the development process. This would encourage developments with a high percentage of affordable housing and speed up the delivery of housing of all tenures. (Recommendation, Paragraph 71)
Government response summary AI-generated
The government stated that existing legislation provides clear powers for compulsory purchase of land for new towns based on the ‘no-scheme’ principle, and that Homes England, LAs and potential Development Corporations already have access to CPO powers.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Accepted
HM Government · verbatim extract
Accepted
47. The Government is committed to delivering the biggest increase in social and affordable housing in a generation. 48. 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. 49. 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. 50. 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.
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