Research highlights lack of affordable mortgages

There is a shortage of affordable housing, according to new findings. 

Property experts have claimed that new rules that reduce the commitments of developers to produce affordable housing will drastically reduce the number of such homes available over the next few years.

The analysis highlighted a recent case where a new appeal mechanism to remove the obligation of a developer to provide affordable housing was introduced.

It has been claimed the new guidelines introduced through the Growth and Infrastructure Act 2013 are being used by developers to reduce their affordable housing commitments.

Experts worry this could result in more developers following suit.

Angus Taylor from property consultants Bruton Knowles suggested that councils and construction firms should take a more joined up approach to ensuring enough affordable homes get built.

He said: "Although we’re coming out of the recession, I believe there is going to be more cases where developers appeal on their affordable housing commitments. Coupled with a reduction in the number of affordable houses being built during the recession has made for a perfect storm in affordable housing provision.

"What’s key is that developers undertake stringent viability studies prior to the submission of any planning application."

An example was given of a case in Gloucester where the affordable housing commitment went from 20 per cent on one site and 30 per cent on a second site to 14.1 per cent across the two. Another case in Exeter resulted in the affordable housing provision being reduced to zero.

As a result of the shortages in cheap mortgages, more and more people are likely to turn to rental accommodation in the coming years.

In London in particular, the high price of properties will lock many out of homeownership. Some local authorities have responded to this by increasing their provision of suitable rental accommodation.

Published 21st November, 2014

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