Out-Law News 1 min. read
02 Mar 2012, 2:15 pm
Boris Johnson has ignored the problem of Councils who allow developers to avoid providing on-site affordable housing by permitting the payment of cash instead, a group of housing associations known as the G15 group will say, according to reports.
The G15 group and the National Housing Federation will voice their concerns in a response to the Mayor's revised housing strategy, according to the reports.
The G15 and NHF are concerned that some London boroughs are accepting cash payments in lieu of on-site provision of affordable housing which results in fewer mixed communities and a reduction in the number of affordable homes actually provided.
"Cash payments are a very poor substitute for proper support for affordable housing" said Cameron Watt, head of neighborhoods at the NHF.
Planning permission for large residential schemes is almost always accompanied by planning obligations imposed on the developer, usually under the terms of a planning agreement secured under section 106 of the Town and Country Planning Act 1990. These obligations are designed to mitigate the impacts of the development and make it acceptable in planning terms.
Local planning authorities will usually have policies in place that require a certain proportion of residential development to consist of affordable housing when a certain threshold of units is reached. Local planning authorities may have an exceptions policy that allows for cash sums to be paid in lieu of on-site provision of affordable housing.
A DCLG Government consultation in relation to whether the community infrastructure levy ought to be capable of being spent on affordable housing closed at the end of December 2011 and the outcome is keenly awaited.
The Mayor has also published a draft revised London Housing Strategy for consultation with the public. The 12 week consultation period runs until 6 March 2012.
