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In the UK, few residential developments are built without consideration being given to affordable housing requirements. Alongside planning obligations, affordable housing is often central to the scheme’s delivery and commercial viability.
Our experienced affordable housing team understands that the key to making a scheme commercially viable is not juggling numbers, build quality and type of units. It requires a much wider understanding of the planning, socio-economic, financial and transactional issues that are involved which will improve the strength of the development, inform negotiations between parties and offer genuine benefits to local communities.
Derwent London and Land Securities are examples of clients for whom we have recently provided advice. The technical expertise typically required includes a combination of the following advice:
Understanding both planning and housing policy is essential. Although not a statutory requirement, it is often necessary to submit affordable housing statements to accompany planning applications. These outline the key issues and characteristics of a site that will define the nature and proportion of housing appropriate. We also provide expert insight and support in S106 agreements which address issues of timing, phasing, nomination rights, the role of registered social landlords, rents and tenancy and so on, ensuring our clients have total control over their scheme’s delivery and success.
Socio-economic studies
Our socio-economic reports examine local and regional housing needs and demonstrate the impact a proposed tenure mix can have on the socio-economic profile of an area.
Financial viability, grants and financing
Identifying the level and mix of affordable provision within a scheme and the amount of planning obligations to deliver a viable proposal is critical to successful negotiations with local authorities. This can involve using the ‘Three Dragons’ Development Control Toolkit. Alternatively, we can also apply our bespoke financial model which explicitly assesses the impact of affordable housing splits and the scope and level of community benefits.
For larger schemes phased over several years, there are significant implications of viability, grant funding and meeting planning obligation requirements when agreeing master plans, S106 agreements and planning conditions. We can demonstrate the impact financially and so inform negotiations.
In addition, we have experience of assessing the array of grants and financing opportunities available through housing associations, the Housing Corporation and other sources of finance.
Acquisitions and disposals
Our team is expert in helping vendors and developers assess the impact of affordable housing on their development site. We can assist in interpreting market conditions and shaping the opportunity in a way which will maximise the development value of the site or return from the scheme.
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