Policy information sourced from the Lewisham Local Plan
HO3 Genuinely affordable housing
Strategic Objectives:
A An open Lewisham as part of an open London,
B Housing tailored to the community with genuinely affordable homes.
A The strategic target is for 50 per cent of all new homes delivered in Lewisham to be genuinely affordable. The Council will seek the maximum amount of genuinely affordable housing to be delivered on new housing developments. Development proposals that deliver high quality affordable housing through the Fast Track Route, as detailed in HO3. Part F, to achieve a minimum 35 per cent affordable housing will be considered favourably. Development proposals involving new housing will only be supported where the site capacity has been optimised and delivery of affordable housing maximised.
B The affordable housing requirement will apply to all forms of conventional housing in the C3 Use Class, unsecured student accommodation and, where appropriate, specialist and supported accommodation. Affordable housing requirements for Purpose Built Student Accommodation are set out in Policy HO7 (Purpose Built Student Accommodation).
C The affordable housing requirements for major developments (large sites) will apply in circumstances where development has already been permitted and 10 or more dwelling units will be delivered taking into account:
- New residential units that are proposed which would result in an uplift in the overall number of units on the site of the extant permission; and
- Development that is proposed on an adjacent site which by virtue of its layout, design and use is functionally related to the extant permission and would result in an uplift in the overall number of units across the sites.
D Applicants will be expected to make all reasonable efforts to secure grant funding to deliver an increase in affordable housing beyond the level that would otherwise be achievable. The Council will work positively with development industry partners to help identify opportunities to secure grant funding to deliver more genuinely affordable housing in Lewisham. Development proposals will be considered favourably where they demonstrably deliver the maximum viable amount of affordable housing whilst meeting the minimum threshold level of affordable housing without public subsidy, as set out in HO3 Part F, and secure grant funding to deliver provision of genuinely affordable housing additional to this level.
Large sites (major developments)
E Development proposals for new housing, including mixed-use developments, with site capacity to accommodate 10 or more dwelling units must deliver the maximum amount of genuinely affordable housing, taking into account:
- Their contribution to the Borough’s strategic affordable housing target, based on habitable rooms, subject to viability;
- The need for provision of a mix of secure housing tenures, with the affordable component sought to be provided on the basis of a tenure split of 70 per cent genuinely affordable (social rent or London Affordable Rent) and 30 per cent intermediate (London Living Rent or shared ownership);
- The preferred housing size mix for affordable housing, as set out in Table 7.1;
- Availability of public subsidy; and e. Other planning benefits that may be achieved, having particular regard to the delivery of the spatial strategy for the Borough.
F A threshold approach to viability will be applied to major development proposals, in accordance with London Plan policy H5 (Threshold approach to applications), taking into account the different routes to affordable housing delivery (i.e. Fast Track Route and Viability Tested Route). In Lewisham, the threshold level of affordable housing on gross residential development is set at:
- A minimum of 35 per cent;
- A minimum 50 per cent on public sector land; and
- A minimum of 50 per cent for Strategic Industrial Locations and Locally Significant Industrial Sites where development would result in a net loss of industrial capacity.
G Where the Viability Tested Route is used, and in other circumstances where a Viability Assessment is submitted to support the level of affordable housing provision made by a development proposal, this must be based on a standard residual valuation approach, with the benchmark existing use value of the land taken as the Existing Use Value (EUV) Premium or the potential for Alternative Use Value. In order to ensure transparency in the planning process the Viability Assessment must be undertaken in line with the Mayor’s Affordable Housing and Viability SPG or future equivalent.
H To maximise affordable housing delivery and address economic uncertainties that may arise over the lifetime of a development proposal the use of ‘review mechanisms’ will be required, where appropriate, and implemented in line with the Mayor’s Affordable Housing and Viability SPG.
I In order to promote inclusive and mixed communities all new affordable housing provision should be delivered on-site. Off-site provision for major development proposals will only be considered in exceptional circumstances, where it can be demonstrated to the satisfaction of the Council that:
- It is not practical or feasible to provide affordable housing onsite due to site development constraints;
- A higher level of affordable housing can be secured through provision on an alternative site;
- Off-site provision is necessary to better meet priority housing need, such as for affordable family housing; and
- The provision will better support inclusive and mixed communities.
Small sites (minor developments)
J Development proposals for new housing delivering between 2 and 9 dwelling units must make provision for affordable housing.They should seek to deliver affordable housing on-site wherever feasible Where it can be demonstrated to the satisfaction of the Council that off-site contributions are acceptable these will be secured through planning obligations, with payments in lieu calculated using Table 7.2 (Small sites affordable housing requirements) and the formula set out in Table 7.3 (Small sites affordable housing payments in lieu).
| TOTAL NUMBER OF UNITS | EQUIVALENT NUMBER OF ON-SITE AFFORDABLE UNITS TO BE USED TO CALCULATE PAYMENT IN LIEU |
|---|---|
| 2 | 0.70 |
| 3 | 1.05 |
| 4 | 1.40 |
| 5 | 1.75 |
| 6 | 2.10 |
| 7 | 2.45 |
| 8 | 2.80 |
| 9 | 3.15 |
| FORMULA FOR CALCULATING PAYMENTS IN LIEU |
|---|
| X = ((A-B) X C) - ((A X C) X D) |
| X – the payment in lieu (£) A = the market value of a square metre of floorspace in the development B = the value of affordable housing per square metre of floorspace (reflecting the mix between genuinely affordable and intermediate products) C= the number of square metres required to meet the affordable housing requirement D= the percentage profit applied to the market housing less the percentage profit applied to the affordable housing, plus the percentage marketing costs applied to the market housing [together reflecting the additional costs of to the developer of delivering a scheme of 100% market housing]. |
Inclusive and mixed neighbourhoods and communities
K In order to secure inclusive and mixed neighbourhoods and communities the Council may seek to alter the tenure and/or mix of affordable housing provision on a case-by-case basis. In establishing the most appropriate level of provision for a site, development proposals will be considered having regard to the existing levels of housing tenure and mix in the area (including extant permissions),
L All new affordable housing developments must be of a high-qaulity design having regard to other Local Plan policies. They must be designed to be ‘tenure neutral’ in accordance with the National Design Guide, so that affordable units are indistinguishable from market units in terms of quality of design and materials, space standards, access and amenity. Where mixed tenure schemes are proposed these must ensure all residents of the development have access to amenities and communal spaces including play spaces, with reference to Policy QD2 (Inclusive and safe design).
Vacant Building Credit
M The application of the Vacant Building Credit (VBC) is not appropriate in Lewisham. The use of VBC will only be considered in limited circumstances, where applicants suitably demonstrate there are robustly evidenced reasons why it is appropriate and the following criteria are met:
- The building is not in use at the time the application is submitted;
- The building is not covered by an extant or recently expired permission;
- The site is not protected for an alternative land use; and
- The building has not been made vacant for the sole purpose of redevelopment, as demonstrated by evidence showing that the building has been vacant for a minimum continuous period of five years and has been actively marketed for at least two years therein, at realistic local area prices.
For more information and policy context please see the Lewisham Local Plan