Government Scraps Affordable Housing Rule Changes Following Industry Backlash
The government has abandoned controversial plans to relax affordable housing requirements in England, following widespread opposition from housing organisations and industry stakeholders.
The proposals would have allowed developers of medium-sized housing developments of between 10 and 49 homes to make cash payments instead of delivering affordable and social housing directly on-site.
However, following consultation responses and warnings that the policy could significantly reduce the supply of affordable homes in rural England, ministers have confirmed the measures will not go ahead.
Affordable Housing Supply Protected
The decision represents a significant change in the government’s approach to housing and planning reform, as it works towards its target of delivering 1.5 million new homes by the end of the current parliament.
The National Housing Federation (NHF) had raised concerns that removing on-site affordable housing requirements could result in 32,000 fewer affordable homes over the next decade.
The impact was expected to be particularly severe in rural communities. NHF analysis found that more than half of affordable homes in England’s most rural areas are delivered through developments of this size.
Kate Henderson, Chief Executive of the NHF, welcomed the government’s decision, saying it would safeguard an important route for delivering social housing and help ensure genuinely affordable homes continue to be built across the country.
Consultation Reveals Significant Opposition
Opposition to the proposed changes was clear during the government’s consultation.
Of the 910 individuals and organisations that responded, 41% strongly opposed the measure, while only 18% strongly supported it.
The government acknowledged “significant opposition across stakeholder groups” and concluded that allowing developers to replace on-site affordable housing with cash contributions could undermine its commitment to delivering the biggest increase in social and affordable housebuilding in a generation.
Wider Planning Reforms Push Ahead
While ministers have reversed this element of the reforms, wider measures designed to accelerate UK housebuilding and planning approvals are moving forward.
New planning rules include a “default yes” approach to housing developments near well-connected train and tram stations, intended to unlock land, speed up planning decisions and increase housing supply.
Housing Secretary Angela Rayner said the government remains focused on getting planning approved quickly while ensuring the infrastructure communities need is delivered alongside new homes.
The reversal signals that while ministers remain determined to boost housebuilding in England, increasing supply will not come at the expense of one of the country’s most important sources of affordable and social housing.
