§ Mr. David NicholsonTo ask the Secretary of State for the Environment what is his policy on the role of the planning system in facilitating the provision of affordable housing; and if he will make a statement.
§ Sir George YoungWe are today publishing guidance in a circular, describing the role the planning system can play in securing the provision of affordable housing, and announcing more flexible arrangements to encourage shared ownership schemes in rural areas.
The planning system must play an important role in securing adequate provision of affordable housing. Development plans should make realistic assessments of total housing requirements, including the provision needed for affordable housing. While not imposing fixed quotas, plan policies can reasonably encourage developers to incorporate affordable housing in larger developments. In rural areas, we have encouraged authorities to develop policies for the release of small, "off-plan" sites for affordable housing.
In development control, conditions and agreements can be used to promote affordable housing schemes, where control is exercised in pursuance of a proper planning 4W objective, and is sound and enforceable. Such schemes may be promoted in partnership with private developers, but, generally, the most secure and effective way of securing the provision of affordable housing is by co-operation with a housing association or other body, such as a village trust, whose continuing interest in the property, through either renting or shared ownership, can provide a basis for control over subsequent changes of ownership or occupation.
We have decided to make a change in the present arrangements for shared ownership. Until now, we have not allowed public subsidy to be invested in schemes unless the occupiers have a right to "staircase" to full owner-occupation if they wish, at a time of their choosing, without being forced to move.
To encourage more schemes in the future, we have decided to amend our policy, and also allow public subsidy to be put into housing association and other private shared ownership schemes which contain a reasonable staircasing restriction in the special circumstances of a rural settlement. Details of those circumstances are set out in the circular published today.
This is an important measure of flexibility which I know will be welcomed by many organisations who wish to see more done to bring home ownership within the reach of existing villagers. We have listened to their advice and we have acted. I now look to local authorities, to landowners and developers, and to housing associations to respond.