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June 2011 Affordable Housing Draft supplementary planning document

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Page 1: Affordable Housing - Southwark Council...3 Affordable Housing supplementary planning document Draft April 2011 • Publish your representations and our officer responses when we take

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Draft April 2011Affordable Housing supplementary planning document

Draft Supplementary planning document June 2011

Affordable HousingDraft supplementary planning document

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TIMELINE FOR CONSULTATION

Consultation on the affordable housing supplementary planning document (SPD)

We welcome your comments on the affordable housing supplementary planning document (SPD).

The affordable housing supplementary planning document will be:

• Availabletothepublicfrom14June2011• TakentoCabinetforagreementforconsultationon21June2011• Availableforformalconsultationfrom19Augustto30September2011

Pleasesendusyourresponseby5pmFriday30September2011.Anyresponsesreceivedafterthis date will not be considered.

Howtomakearepresentation

Representations should be made using our response form found at our website:

http://www.southwark.gov.uk/ahspd

Ifyoudonothaveinternetaccess,theresponseformoralettercanbesentto:

Alison SquiresTeam Leader Planning PolicyRegeneration and neighbourhoodsFREEPOSTSE1919/14London SE17 2ES

[email protected]

Tel:02075255471Fax:02070840347

What do we do with your representation?

Whenwereceiveyourrepresentationwewill:

• Acknowledgeyourresponsebyemail(orletterifanemailaddressisnotprovided)

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• PublishyourrepresentationsandourofficerresponseswhenwetaketheSPDforwardforadoption

TIMETABLE

Afterconsultationclosesonthisdocument,wewilllookatalltherepresentationswereceiveandconsiderwhetherweneedtomakeamendmentstotheSPD.

WewillthentakeafinalSPDandthecommentsmadeontheSPDwiththeofficercomments,to the Council’s Cabinet for adoption. The table below sets out the important consultation and adoption dates.

CONSULTATION TIMETABLE

Consultation on Sustainability Appraisal Scoping Report

17 September – 22 October 2010

Consideration of responses October 2010 to June 2011

Consultation on draft Affordable Housing SupplementaryPlanningDocument,SustainabilityAppraisal,consultationplanandEqualities Impact Assessment (this stage of consultation now)

14Juneto30September2011

Consideration of responses October 2011

AdoptthefinalversionoftheAffordableHousing Supplementary Planning Document accompaniedbyafinalEqualitiesImpactAssessment,finalsustainability appraisal and a sustainability and consultation statement.

November2011

Help with your comments

ForindependenthelpandadviceonthisplanningdocumentorforanyotherplanningmatteryoucancontactPlanningAidforLondonon02072474900orbyemailinginfo@planningaidforlondon.org.uk

IfyouwouldlikeamemberofplanningpolicytoattendacommunitymeetingtodiscusstheSPD please get in contact with us.

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Contents1. INTRODUCTION 8

1.1 The Affordable Housing SPD 81.2 Why we need the SPD 81.3WhatdoesthisSPDdo? 91.4WhentousethisSPD 101.5Otherimportantdocumentsyouneedtoknowabout 111.6HowtofindyourwayaroundthisSPD 12

2.WHATISAFFORDABLEHOUSING? 14

2.1Whatdowemeanbyaffordablehousing? 142.2 Additional guidance 152.3Whoiseligibleforaffordablehousing? 172.4Changestonationalaffordablehousingpolicy 19

3.GETTINGTHERIGHTAMOUNTOFAFFORDABLEHOUSING 20

3.1Ourstrategy 203.2Ourpolicies 203.3Additionalguidance 243.4Monitoringandreview 26

4.GETTINGTHERIGHTMIXOFHOUSING 27

4.1Ourstrategy 274.2Ourpolicies 274.3Additionalguidance 324.4Monitoringandreview 33

5.THEQUALITYANDDESIGNOFAFFORDABLEHOUSING 34

5.1 Ourstrategy 345.2Ourpolicies 345.3Additionalguidance 36 Designandintegration 36 Dwellingsizes 365.4Monitoringandreview 39

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6.WHERESHOULDTHEAFFORDABLEHOUSINGBEPROVIDED? 40

6.1Ourstrategy 406.2Ourpolicies 406.3Additionalguidance 41 On-siteprovision 36 Off-siteprovision 42 Poolingcontributionsforaffordablehousing 42 Calculatingthepooledcontributions 426.4Monitoringandreview 45

7.MAXIMISINGAFFORDABLEHOUSING 46

7.1Ourstrategy 467.2Ourpolicies 467.3Additionalguidance 477.4Monitoringandreview 51

8.SHELTERED,SUPPORTEDANDEXTRACAREHOUSING 52

8.1 Our strategy 528.2 Our policies 528.3Additionalguidance 538.4Monitoringandreview 54

9.FINANCINGANDSECURINGAFFORDABLEHOUSING 55

9.1Ourstrategy 559.2Ourpolicies 559.3Additionalguidance 56

10. MAKING AN APPLICATION 61

10.1Pre-applicationadvice 6110.2Engagingwitharegisteredprovider 6210.3Submittingaplanningapplication 63

APPENDIXA.FINANCINGAFFORDABLEHOUSING 64

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Listoffiguresandtables

Table 1: Household affordability income limits 17Table 2: Annual household income range mid-point for intermediate housing units 18Table3:Table4.4ofsavedSouthwarkPlanpolicy4.4 22Table4:SavedSouthwarkPlanpolicy4.4Affordablehousingtenuremixindesignatedareas 28 Table5:Minimumdwellingsizes 38Table 6: Dwelling Size 62

Figure1:Affordableandprivatehousingrequirements(figure28oftheCoreStrategy) 21Figure2:Minimum35%privatehousingpolicyareas 23Figure3:TenureMix 29

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1. INTRODUCTION

1.1 The Affordable Housing SPD

1.1.1 Ourcorestrategy(2011)andsavedSouthwarkPlanpolicies(2007)setouthowSouthwarkwill change up to 2026 to be the type of place set out in our Sustainable Community Strategy (Southwark2016).

1.1.2 Southwark2016setsoutthekeyobjectiveofmakingtheboroughabetterplaceforpeople.Tomeetthisobjectivewewanttoprovidemoreandbetterhomestomeettheneedsofthecommunity.Ourcorestrategy,savedSouthwarkPlanandareaactionplanpolicieshelpustodothis. This supplementary planning document (SPD) supports these strategic planning policies by providingguidanceonhowhomescanbeprovidedforpeopleonawiderangeofincomestofurtherimprovemixedcommunities.Itwillreplacetheadopted2008AffordableHousingSPD.

1.2 Why we need the SPD

1.2.1 SouthwarkhasoneofthehighestamountsofaffordablehousinginthecountryandwearethelargestlandlordinLondon.Inthe1970sapproximately70%ofSouthwark’shousingstockwassocialrentedhousing(councilhousingplushousingassociationrented).AsatApril2010,thepercentageofsocialrentedstockwasdownto44%butthisisstillthreetimesthenationalaverageandthehighestinLondon.Approximately1.5%ofthehousingstockisintermediatehousing.Despitehavingthislargeamountofaffordablehousing,therestillremainsaconsiderableneedformoreaffordablehousinginSouthwark.

1.2.2 Thereisawell-documentedshortageofaffordablehomes,inSouthwark,acrossLondonandthewholeoftheUK.Akeyobjectiveofnationalgovernment,theGreaterLondonAuthority(GLA)andSouthwarkistoprovidemoreaffordablehousing.NationalguidanceinPlanningPolicyStatement3:Housing,setsouttheoverallpolicywithaviewtoensurethateveryonehastheopportunitytoliveinadecenthome,whichtheycanafford,inacommunityinwhichtheywishtolive.

1.2.3 Ourhousingstudiesandstatisticalevidencesupportourpriorityofprovidingmoreaffordablehousingtomeetlocalneed.OurStrategicHousingMarketAssessment(2010)andHousingRequirementsStudy(2009)bothsetoutthatthereisaconsiderableneedformoreaffrdablehousing,includingbothsocialrentedandintermediatehousing.OurcorestrategyhousingbackgroundpaperssetoutfurtherinformationonSouthwark’sexistinghousingstockandourhousing need.

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1.2.4 Thesecanbefoundat:

http://www.southwark.gov.uk/ldf/evidence

1.2.5 Through our planning policies we set out a strategy to bring forward the maximum reasonable amountofaffordablehousingtohelpmeettheSouthwark2016andcorestrategyobjectiveofmakingtheboroughabetterplaceforpeoplebyprovidingmoreandbetterhomes.ThroughourHousingStrategy2009-2016wealsosetoutastrategytoimproveexistingaffordablehousinginSouthwarktohelpimprovequalityoflifeforresidents.

1.3WhatdoesthisSPDdo?

1.3.1 SupplementaryPlanningDocuments(SPDs)areoneofanumberofdocumentswithinasetofplanningdocumentscalledthelocaldevelopmentframework(LDF).WithintheLDFdevelopmentplandocuments,thecorestrategy,areaactionplansandthesavedSouthwarkPlansetSouthwark’spoliciesforaffordablehousing.SPDsprovidefurtherguidancetothesepolicies.SPDscannotsetnewpolicy.SPDsareusedtomakedecisionsonplanningapplications.Information on our website sets out further information on the LDF. This can be found at:

www.southwark.gov.uk/planningpolicy

1.3.2 ThisdraftSPDwillreplacethe2008AffordableHousingSPDandtakesintoaccountchangesinnational,regionalandlocalpolicies.ItprovidesguidanceonthenewcorestrategyandareaactionplanpoliciesandthesavedSouthwarkPlanpoliciesonaffordablehousing.

1.3.3 TheSPDdoesnotprovideguidanceonthecurrentproposalsforchangestoaffordablehousingstemming from the emergence of the Localism Bill and other emerging changes in planning policyassociatedwiththechangeinnationalgovernmentinMay2010.WemayneedtoupdatethisSPDorproduceanotherLDFoncewehaveclarityontheproposedchangesandtheirimplicationsforSouthwark.

1.3.4 TheLDFdocumentsandthespecificpoliciesthatthisSPDprovidesguidanceonaresetoutbelow. All the documents can be found at:

www.southwark.gov.uk/ldf/evidence

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Core strategy (2011) • StrategicTargetsPolicy2ImprovingPlaces• Areavisions• Strategicpolicy5Providingnewhomes• Strategic policy 6 Homes for people on different incomes• Strategic policy 7 Family homes• Strategic policy 8 Student homes• Strategicpolicy14Implementationanddelivery

SavedSouthwarkPlan(2007)• Policy 2.5 Planning obligations• Policy3.11Efficientuseofland• Policy4.2Qualityofresidentialaccommodation• Policy4.4AffordableHousing• Policy4.5Wheelchairaffordablehousing• Policy4.7Nonself-containedhousingforidentifiedusergroups

Aylesbury Area Action Plan (2010)• PolicyBH3Tenuremix• PolicyBH4Sizeofhomes• Policy BH5 Type of homes• Appendix 6 Design guidance

Canada Water Area Action Plan (publication/submission draft 2010)• Policy 22 Affordable homes

1.3.5 Thecorestrategy(2011)andsavedSouthwarkPlanpolicies(2007)setoutaffordablehousingpolicies for the whole borough. The area action plans set additional affordable housing policies forspecificareas.WherethereisanareaactionplanpolicythisisusedwhereitprovidesmoredetailtothecorestrategyandsavedSouthwarkPlanpolicies.

1.4WhentousethisSPD

1.4.1 WewillusethisSPDtomakedecisionsonallplanningapplicationsthatincludethedevelopmentof10ormorehousingunits.Thisincludesapplicationsfornewbuild,changeofuse,conversions,extensionsandmixedusedevelopments.

1.4.2 WewillalsousethisSPDtomakedecisionsonplanningapplicationsthatincludehousingwhere:

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• The site is 0.5 hectares or more in size• Thesiteisappropriateinsizeandlocationtoprovide10ormorehousingunits• Thedevelopmentisastudenthousingschemeof30ormorebedspacesandlivingspaces,or

thedevelopmentisover0.5hectares(whicheverissmaller)• Thedevelopmentincludeslive-workunitsandthenumberoflive-workunitsis10ormore.• Alsoifthenumberofresidentialunitsandlive-workunitscombinedis10ormore

1.5Otherimportantdocumentsyouneedtoknowabout

1.5.1 Therearemanyimportantplanningandhousingdocumentsthatprovidefurtherinformationandbackgroundtoaffordablehousingandthissupplementaryplanningdocument.Wehavesetoutthekeydocumentsthatdealwithaffordablehousingbelow.

National

1.5.2 PlanningPolicyStatement3:Housingsetsoutnationalgovernment’spoliciesonhousing,including affordable housing. This can be found at:

www.communities.gov.uk/publications/planningandbuilding/pps3housing

Regional

1.5.3 TheLondonPlanconsolidatedwithalterationssince2004(2008)isthecurrentadoptedLondonPlan.Togetherwiththedevelopmentplandocumentsinourlocaldevelopmentframeworkthisisouradopteddevelopmentplanandtogethertheysetoutourplanningpolicies.TheMayorhasalsopreparedadraftreplacementLondonPlan(2009)whichwilleventuallyreplacetheadoptedLondonPlan.TheInspector’sreportisavailableontheMayor’swebsiteandtheplanisexpectedto be adopted in late 2011. This can be found at:

http://www.london.gov.uk/priorities/planning

Local

1.5.4 ThisSPDshouldbeusedalongsideourotherplanningdocumentsthatsetoutbothpolicyanddetailedguidance.Forinformationonallourplanningpolicydocumentsvisit:

www.southwark.gov.uk/planningpolicy

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Supporting Documents

1.5.5 OursupportingdocumentsprovidefurtherbackgroundinformationonthisSPD.Youcanalsoput in representations on any of these supporting documents. These are:

Equalities Impact AssessmentThisexamineshowtheSPDmeetstheneedsofthewholecommunityandlooksattheimpact

oftheSPDonthedifferentequalitytargetgroupsinSouthwark.

Sustainability appraisal Thesustainabilityappraisallooksattheeconomic,environmentalandsocialimpactsoftheSPD.

Consultation PlanThissetsouthowwewillconsultthecommunityontheSPDandhowwewilltakerepresentationswe

receiveontheSPDintoconsideration.

1.6HowtofindyourwayaroundthisSPD

1.6.1 This SPD is split into 10 sections:

• Section1and2setouttheintroductionandbackgroundtowhyweneedaffordablehousingand what is considered as affordable housing

• Sections3to6setoutguidanceonhowwegettherightamount,mix,qualityandlocationof affordable housing

• Section7setsoutguidanceforspecifictypesofdevelopments

• Section8setsoutguidanceforsheltered,supportedandextraneedshousing

• Section9setsouthowaffordablehousingisfinancedandsecured

• Section 10 sets out guidance on submitting a planning application.

• AppendixAsetsouttheamountaregisteredproviderwillnormallypayforasocialrentedunit

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1.6.2 Withinsections3to9wesetout:

• Ourstrategy.Thisexplainsthepurposeandobjectivesofourpoliciesandguidance• Ourpolicies.ThissetsoutthekeyLDFpoliciesusedinmakingdecisions on affordable

housing.Thesearefromourcorestrategy,savedSouthwarkPlanandareaactionplans• Additionalguidance.TheSPDprovidesadditionalguidanceandinformation of a more

detailedlevelthanappropriateforadevelopmentplandocument.Thesesectionssetouradditional guidance on implementing the policies

• Monitoringandreview.Thissetsouthowwemonitorourpoliciesandguidance to ensure thatourstrategyisbeingeffectivelydelivered

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2. WHAT IS AFFORDABLE HOUSING?

2.1 What do we mean by affordable housing?

Corestrategydefinition

2.1.1 Wedefineaffordablehousinginthecorestrategy.

Affordable housing:

‘Affordablehousing,assetoutinLondonPlanpolicy3A.8meetstheneedsofhouseholdswhoseincomes are not enough to allow them to buy or rent decent and appropriate housing in theirborough.’

2.1.2 The core strategy sets out that there two types of affordable housing:

1. SocialrentedhousingishousingthatisavailabletorenteitherfromtheCouncil,aregisteredproviderorotheraffordablehousingprovider.Accesstosocialrentedhousingisbased on need.

2. Intermediateaffordablehousingishousingatpricesandrentsabovethoseofsocialrentedbutbelowprivatehousingpricesorrents.Itcanincludepartsharedownership(NewBuildHomebuy),Rent-to-Homebuyandintermediaterenthousing.Factboxoneprovidesfurther detail on some of the different types of intermediate affordable housing.

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2.2 Additional guidance

2.2.1 For housing to be considered as affordable it must meet the following criteria.

Social rented housing

2.2.2 Socialrentedhousingishousingthatisavailabletorenteitherfromthecouncil,aregisteredproviderorotheraffordablehousingprovider.Forsocialhousingtobeconsideredaffordableitmust meet the following criteria:

• Thegovernmenthastoldlocalauthorities,housingassociationsandotheraffordablehousingproviderstousethesameformulaforsettingrentsforsocialrentedhousing,knownastargetrents.Theformulaisthattherentsthattenantspayarebasedonthevalueoftheunit,itsbedsizeandtheaverageincomeofhouseholdslivinginthesamearea.Toqualifyassocialrentedhousing,rentsmustbenogreaterthanthesetargetrents;and

• Servicechargesarecollectedbylandlordstorecoverthecostsofprovidingservicestoadwelling.Thewaytheservicechargeisorganisedissetoutinthetenant’sleaseortenancyagreement.Thechargenormallycoversthecostsofgeneralmaintenanceandrepairs,insuranceofthebuildingand,wheretheservicesareprovided,centralheating,lifts,lightingand cleaning of common areas. The charges may also include the costs of management bythelandlordorbyaprofessionalmanagingagent.Toqualifyassocialrentedhousing,servicechargesmustbeatalevelthatensurestheyareaffordabletohouseholdsonatotal(orgross)incomeoflessthan£18,100peryearandthatrentsandservicechargesintotaldonotexceed30%ofnethouseholdincome(i.e.afterdeductions);and

• Accesstosocialhousingshouldbebasedorhousingneed;and

• Itmustbeavailableonalong-termbasis.InSouthwarklong-termisconsideredtobeinperpetuity.

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Intermediate housing

2.2.3 Intermediatehousingishousingforpeoplewhocannotaffordtorentor buymarkethousingbutcanaffordtopaymorethantargetrents.Forintermediatehousingto

be considered affordable it must meet the following criteria:

• Itmustenablehouseholdsthatdonotearnenoughtoaffordmarkethousingbutcanaffordmorethantargetrents,torentorpurchaseallorpartoftheirhome;

• Rentsincludingservicechargesmustbeabovethetargetrentsforsocialhousingbutmustbeaffordablebyhouseholdsonincomesoflessthan£61,400(or£74,000forhomeswithmore than two bedrooms)

• Purchasepricesmustbenogreaterthan3.5timestheaverageincomelimitof£61,400(or£74,000forhomeswithmorethantwobedrooms)orannualhousingcosts(includingrentandservicecharges)arenogreaterthan40%ofthenethouseholdincome(assumedtobe70%oftotal,orgross,income).

Fact box one: Types of intermediate housing

Intermediatehousingincludessharedownership,housingforrentandotherlow-costhomeownershipproducts.TwoofthemainintermediateproductsinSouthwarkaresharedownership(alsoknownasNewBuildHomebuy)andRent-to-Homebuy.

Shared ownership (NewBuild Homebuy)

Shared ownershipisthemainoptionforintermediatehousinginSouthwark.Itallowshouseholds who cannot afford to buy a me outright the opportunity to part buy and part rent ahome.

Residentsinsharedownershipmaychoosetobuya25%,50%or75%shareintheirhomedepending on what they can afford. They pay rent on the share that they do not buy. The bigger thesharethatispurchased,thelessrenthastobepaidontheremainingpartoftheproperty.

Residents can choose to buy a greater share of their property when they can afford it until eventuallytheyowntheirhomeoutright.Thisisknownas‘staircasing’.

Rent- to-Homebuy

Rent-to-Homebuy is another form of intermediate housing that helps households that experience difficulty in obtaining an affordable mortgage without a deposit. Rent is set at up to 80%ofcurrentmarketrentonanewhomeforupto5years.Thetenantisabletopurchasethedwelling on Newbuild Homebuy terms at the end of the intermediate rent period or earlier if theyhavemanagedtosaveupforadeposit.

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2.3Whoiseligibleforaffordablehousing?

2.3.1 Householdsearningbelowaspecifiedincomemaybeeligibleforaffordablehousing.Households earning below these income limits are not normally able to otherwise afford to buy orrentdecentandappropriatehousinginSouthwark.

2.3.2 TheLondonPlansetstheplanningframeworkforhouseholdincomelimitsforsocialrentedandintermediatehousing.ThesearebasedonaveragehouseholdincomesandaveragehousepricesacrossLondon.Householdsearningabovetheseincomelimitsarenoteligibleforaffordablehousing.

2.3.3 TheGreaterLondonAuthority(GLA)updatestheLondonPlanincomelimitseveryyearthroughtheLondonPlanAnnualMonitoringReport,basedonchangesinaverageincomesandhouseprices. Table 1 sets out the current household affordability income limits. We will update these figuresannuallytotakeintoaccounttheupdatesmadebytheGLA.PleasecheckthissectionoftheSPDonourwebsitetoensureyouareusingthemostup-to-datefigures.Thefigureswillbeupdated at:

http://www.southwark.gov.uk/ahspd

2.3.4 ThecurrentfiguresarefromthedraftreplacementLondonPlan2009.Thesearethemostup-to-datefiguresatthetimeofconsultationonthisSPD.

Table 1: Household affordability income limits

Income range Housing type

£0-£18,100 Social rented housing

£18,100-£61,400 Intermediate housing

Forhomeswithmorethantwobedrooms,whichareparticularlysuitableforfamilies,theupperendofthisrangeforintermediatehousingis£74,000

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2.3.5 WeusetheLondonPlanfiguresastheincomelimitsforsocialrentedhousing.WeadapttheLondon Plan income limits to create our own local affordability criteria for intermediate housing toensureourresidentscanaffordintermediatehousinginSouthwark.Ourfiguresarewithinthe wider intermediate housing income limits set by the GLA. They represent the mid point between the household income below which households could qualify for social rented housing (£18,100)andthehouseholdincomerequiredtoqualifyforamortgagetopurchasehousingintheleastexpensiveareasofourborough.ThesearespecifictoSouthwark,basedonouraveragehouseholdincomes.Table2setsoutourannualhouseholdincomerangemid-pointforintermediate housing units.

Table 2: Annual household income range mid-point for intermediate housing units

Number of bedrooms 1 2 3 4

Income (range mid-point) £29,515 £35,943 £42,372 £44,154

Developerswillberequiredtoensureintermediatehousingisaffordabletohouseholdsontheseincomesthroughexpressingthesefiguresinsection106agreementsrelatingtosecuringaffordableintermediatehousing.Wewillupdatethesefiguresannuallytotakeintoaccountchangestolocalhousepricesandincomelevels.PleasecheckthissectionoftheSPDonourwebsitetoensureyouareusingthemostup-to-datefigures.Wewillalsoupdatethesefiguresthrough our Annual Monitoring Report.

We will update our website at:

http://www.southwark.gov.uk/ahspd

2.3.6 Registeredproviderswillnormallybuytheaffordableunitsfromthedeveloper.ThetableinAppendixAindicateshowmucharegisteredproviderwouldnormallypayadeveloperforsocialrentedunits.Wedonothaveanequivalenttableforintermediateaccommodationbutouraffordabilitylevelslargelyconstrainthepricethatispaid.

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2.4Changestonationalaffordablehousingpolicy

2.4.1 SincethechangeofgovernmentinMay2010,therehavebeenanumberofsuggestedchangestothewaysinwhichaffordablehousingisdeliveredandwhatisdefinedasaffordablehousing.

2.4.2 TheGovernmentrecentlyconsultedonachangetoPlanningPolicyStatement3:Housing.The change includes the product Affordable Rent as a form of affordable housing. The council submittedaresponsetothisconsultationraisingconcernwhethertheproductwouldworkinSouthwarkwherethereisahighneedforaffordablehousing,particularlysocialrentedhousing,andalowaverageincome.TherevisedPlanningPolicyStatement3wasadoptedon9June2011.WewilllookattheimplicationsofthenewdefinitionsforSouthwarkaspartoftheconsultation on this SPD.

2.4.3 AtthetimeofconsultingonthisSPD,noneofthesuggestedchangeshavebeendevelopedintofinalpolicyorlegislativechanges.ThisdraftSPDforconsultationcontinuestousethecurrentPPS3andLondonPlandefinitionsofaffordablehousing.WemayneedtoreviewthisandtakeintoaccountchangesinnationalandregionalpolicybeforewetakethisSPDtoCabinetforfinaladoptioninNovember2011.

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3.GETTINGTHERIGHTAMOUNTOFAFFORDABLEHOUSING

3.1Ourstrategy

3.1.1 WewanttoprovidearangeofhousingtomeettheSouthwark2016andcorestrategyobjectivesofprovidingmoreandbetterhomes.Wewanttoofferhousingchoicesforpeopleondifferentincomes.Werequiredevelopmenttoprovideasmuchaffordablehousingasisreasonablypossiblewhilstalsomeetingtheneedsforothertypesofdevelopmentandencouraging mixed communities.

3.2Ourpolicies

3.2.1 Ourpoliciesforgettingtherightamountofaffordablehousingarewithinourcorestrategy,oursavedSouthwarkPlanpoliciesandouractionplansforAylesburyandCanadaWater.Theseareset out below.

3.2.2 Corestrategypolicy6Homesforpeopleondifferentincomes,setsthepolicies:

• Requiringasmuchaffordablehousingondevelopmentsof10ormoreunitsasisfinanciallyviable

• Requiringaminimumof35%affordablehousingunitsondevelopmentswith10ormoreunits

• Requiringaminimumof35%privatehousingintheElephantandCastleopportunityareaandSouthBermondsey,Faraday,Livesey,Nunhead,Peckham,theLane,BrunswickParkand

• Camberwell Green wards. Figures 1 and 2 show these areas. • Providingaminimumof8558netnewaffordablehomesbetween2011and2026

Figure1showsthetenuremixrequired.Thisisfigure28ofthecorestrategy.

3.2.3 Corestrategypolicy6andtheareavisionssetaffordablehousingtargetsforthefollowingareas.These targets are also set out in the area action plans and supplementary planning document/opportunityareaframeworksfortheseareas.

• Bankside,BoroughandLondonBridgeOpportunityArea:minimumof665affordablehousing units between 2011 and 2026

• ElephantandCastleOpportunityArea:minimumof1400affordablehousingunitsbetween2011 and 2026

• Canada Water Action Area: minimum of 875 affordable housing units between 2011 and 2026

• AylesburyActionArea:2100affordablehousingunitsbetween2009and2026

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Figure1:Affordableandprivatehousingrequirements(figure28oftheCoreStrategy)

Peckham

BrunswickPark

CamberwellGreen

Nunhead

The Lane

South Camberwell

Peckham RyeEast Dulwich

FaradayLivesey

Village

Newington

East Walworth

South Bermondsey

Grange

Chaucer Rotherhithe Surrey Docks

RiversideCathedrals

Peckham

At least 35% of newunits must be affordable.

At least 35% of new unitsmust be private.

(10 units or more)

WardBoundary

At least 35% of new unitsmust be affordable.

(10 units or more)

50% of the new homes mustbe private and 50% must beaffordable.

Aylesbury CoreArea

Canada WaterAction Area

A minimum of 35% of thenew units must be affordable

At least 35% of new unitsmust be private

At least 35% of new unitsmust be affordable

Elephant and CastleOpportunity Area

Bankside, Boroughand London BridgeOpportunity Area

Affordable HousingTarget: 665 units

Affordable HousingTarget: 1400 units

Affordable HousingTarget: 875 units

Affordable HousingTarget: 2100 homes

At least 35% of new unitsmust be affordable.

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3.2.4 Corestrategypolicy8Studenthomes,setsthepolicy:• Requiring35%ofstudentdevelopmentsasaffordablehousinginlinewithpolicy6and

figure28[ofthecorestrategy]

3.2.5 SavedSouthwarkPlanpolicy4.4Affordablehousing,setsthepolicy:

• Forallschemescapableofproviding10,11,12,14and14dwellings,onsiteprovisioncalculated by the proportions outlined in the following table.

Table3:Table4.4ofsavedSouthwarkPlanpolicy4.4

Number of units 10 11 12 13 14

Proportion of affordable units 1 2 3 4 5

3.2.6 SavedSouthwarkPlanpolicy4.5Wheelchairaffordablehousingsetsthepolicy:

• Foreveryaffordablehousingunitwhichcomplieswiththewheelchairdesignstandards,onelessaffordablehabitableroomwillberequiredthanotherwisestatedinpolicy4.4[nowpolicy6ofthecorestrategyandpolicyBH3oftheAylesburyAreaActionPlan]

3.2.7 AylesburyAreaActionPlanpolicyBH3setsthepoliciesfortheAylesburyActionArea:

• 50%ofnewhomesintheactionareacorewillbeaffordableand50%willbeprivate• Oftheaffordablehousingprovided,75%shouldbesocialrentedand25%shouldbe

intermediate

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Figure2:Minimum35%privatehousingpolicyareas

At least 35% of newunits must be private

WardBoundary

(10 units or more)

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3.3Additionalguidance

How we calculate the required amount of affordable housing

Developmentsof15housingunitsormore

3.3.1Fordevelopmentof15housingunitsormore,theamountofaffordablehousingtobeprovidedwillbecalculatedinhabitablerooms.Ahabitableroomisdefinedinthecorestrategyasaroomthatcouldbeusedforsleepingwhetheritisornot.Itincludesbedroomsandlivingrooms.

3.3.2 Incircumstanceswherethecalculationofaffordablehousingresultsinafractionofahabitableroom (e.g. 0.7) we will round the number up or down to the nearest whole habitable room (with 0.5beingroundedup).Anyroomthatisover27.5sqmwillbeconsideredastwohabitablerooms.

Developmentof10-14units

3.3.3 Fordevelopmentsof10-14housingunits,theamountofaffordablehousingtobeprovidedwillnormallybecalculatedonunitsasshownintable4.4ofsavedSouthwarkPlanpolicy4.4andinsection3.2ofthisSPD.

Studentdevelopments

3.3.4 Werequirestudentschemestoprovideaffordablehousingwhentheyinclude30ormorebedspacesandlivingspaces,orthedevelopmentisover0.5hectares(whicheverissmaller).Thisisequivalenttothethresholdof10unitsofgeneralneedshousingaseachbedspaceorlivingspaceisequivalenttoonehabitableroom.

3.3.5Corestrategypolicy8appliestoallstudentschemesabovethisthreshold.Assetoutinthepolicythisissothatwecanmeettheneedsofuniversitiesandcollegesfornewstudenthousingwhilstbalancing the building of student homes with other types of housing such as affordable and family homes. By requiring an element of affordable housing or a contribution to affordable housing(asconventionalaffordablehousing)wecanmakesureweworktowardsmeetingthe needs for both student accommodation and affordable and family accommodation. The policyappliestoallstudentschemesabovethethreshold.WerequireanelementofaffordablehousingonallstudentsitesabovethethresholdtoensurethatweworktowardsmeetingtheconsiderablehousingneedinSouthwarkformoreaffordablehousingandmorefamilyhousing.It will help to ensure we meet our affordable housing targets

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3.36Example1: Calculating the required amount of affordable housing in student schemes

• Adevelopersubmitsanapplicationforadevelopmentof220studentbedroomsintheElephant and Castle opportunity area. The bedrooms are arranged within cluster flats with 10 studentbedroomssharingacommunalliving/diningarea

• Eachstudentbedroomandeachliving/diningareacountsasonehabitableroom.• Thereare220habitablerooms(200bedroomsand20living/diningareas)• Corestrategypolicy6requiresaminimumof35%ofthedevelopmentasaffordablehousing.

A minimum of 77 of the 220 habitable rooms should be affordable housing

Wheelchair affordable housing

3.3.7 OurwheelchairstandardsaresetoutinourResidentialDesignStandardsSPD2008.Foreveryaffordable housing unit that meets these standards one less affordable habitable room will be requiredassetoutinsavedSouthwarkPlanpolicy4.5

3.3.8Example2:Calculatingtherequiredamountofaffordablehousingforwheelchairaffordable housing

• Adevelopersubmitsanapplicationfor75flatsinLondonBridge• Theapplicationincludes20onebedroomflats,40twobedroomflatsand15threebedroom

flats• Whencountingupallofthehabitableroomsinthedevelopmentthereare145bedrooms

and75livingrooms.Thistotals220habitablerooms.• Corestrategypolicy6requiresaminimumof35%ofthedevelopmenttobeaffordable

housing. This is a minimum of 77 habitable rooms• The applicant proposes that 8 of the three bedroom affordable flats are built in accordance

with the wheelchair design standards in our Residential Design Standards SPD• SavedSouthwarkPlanpolicy4.5allowsonelessaffordablehabitableroomsthanunder

normalpolicyrequirementforeveryaffordableunitthatmeansthesestandards• Thedevelopmenthastoprovide69habitableroomsasaffordable(i.e.subtract8from77)

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3.4Monitoringandreview

3.4.1 ThroughourAnnualMonitoringReport(AMR)wemonitorhowmuchhousingwedelivereveryyear.Thisincludesmonitoringtheoveralldeliveryofallhousingandthedeliveryofaffordablehousing.Wemonitorhowmuchhousingandaffordablehousingisdeliveredwithineachofourareas.

3.4.2 Wealsomonitorthenumberofhouseholdswhichareinpriorityneedandthenumberofhouseholds on the housing register.

3.4.3 Togetherthishelpsusreviewwhetherourpoliciesaremeetingourhousingtargetsforallhousingandaffordablehousing.Italsoenablesustoreviewwhetherthesepoliciesareeffectivein helping to meet some of our affordable housing need by reducing the number of households which are in priority need and the number of households on the housing register. This will help us to identify whether we need to amend our affordable housing policies through future developmentplandocuments.

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4.GETTINGTHERIGHTMIXOFHOUSING

4.1Ourstrategy

4.1.1 WewanttoprovidearangeofhousingtomeettheSouthwark2016andcorestrategy objectivesofprovidingmoreandbetterhomes.Wewanttoofferhousingchoicesforpeople ondifferentincomes.Wewanttoprovideprivate,intermediateandsocialrentedhousing.We

alsowanttoprovidedifferentsizeddwellingsandmorefamilyhomes.

4.2Ourpolicies

4.2.1 Ourpoliciesforgettingtherightmixofhousingarewithinourcorestrategy,oursaved SouthwarkPlanpoliciesandourareaactionplansforCanadaWaterandAylesbury.Theseareset

out below for both tenure mix and dwelling size mix.

Policies for tenure mix

4.2.2 Corestrategypolicy6Homesforpeopleondifferentincomessets,thepolicies:

• Requiringaminimumof35%affordablehousingunitsondevelopmentswith10ormoreunits

• Requiringaminimumof35%privatehousingintheElephantandCastleopportunityareaandSouthBermondsey,Faraday,Livesey,Nunhead,Peckham,theLane,BrunswickParkandCamberwell Green wards. Figure 2 on page 21 shows these areas.

Figure1showsthetenuremixrequired.Thisisfigure28ofthecorestrategy.

4.2.3Corestrategypolicy8StudentHomes,setsthepolicy:

• Requiring35%ofstudentdevelopmentsasaffordablehousinginlinewithpolicy6andfigure28[ofthecorestrategy]

4.2.4 SavedSouthwarkPlanpolicy4.4Affordablehousing,setsthepolicies:

ThisissetoutinFigure3.

• The affordable housing must be an appropriate mix of dwelling type and size to meet the identifiedneedsoftheborough

• Atenuremixof70:30socialrented:intermediatehousingratioexceptasstatedbelowforopportunity and local policy areas. Figure 1 shows this.

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Table4:SavedSouthwarkPlanpolicy4.4Affordablehousingtenuremixindesignatedareas

Area designation Socialrented(%) Intermediate(%)

CentralActivitieszone 70 30

Urban zone 70 30

Suburban zone 70 30

Elephant and Castleopportunity area 50 50

Old Kent Road action area 50 50

PeckhamandNunheadaction area 30 70

Camberwell action area 50 50

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Figure3:TenureMix

Old Kent RoadAction Area

Elephantand CastleOpportunityArea

CamberwellAction Area

Urban DensityZone

Central ActivityZone

Suburban DensityZone

Peckham andNunhead

Action Area

Canada WaterAction Area

Social Rented :Intermediate

AylesburyAction Area

70% : 30%

50% : 50%

30% : 70%

75% : 25%

Old Kent RoadAction Area

Elephantand CastleOpportunityArea

CamberwellAction Area

Urban DensityZone

Central ActivityZone

Suburban DensityZone

Peckham andNunhead

Action Area

Canada WaterAction Area

Social Rented :Intermediate

AylesburyAction Area

70% : 30%

50% : 50%

30% : 70%

75% : 25%

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4.2.5 AylesburyAreaActionPlanpolicyBH3Tenuremix,setsthepolicyfortheAylesburyActionArea:

• 50%ofnewhomesintheactionareacorewillbeaffordableand50%willbeprivate.• Oftheaffordablehousingprovided,75%shouldbesocialrentedand25%shouldbe

intermediate

4.2.6 CanadaWaterAreaActionPlanpolicy22Affordablehomes,setsthepolicyfortheCanadaWateraction area:

• Inschemesof10ormoreunits,atleast35%ofhomesmustbeaffordable.Oftheaffordablehomes,70%shouldbesocialrentedand30%shouldbeintermediate

Policies for a mix of dwelling sizes

4.2.7 Corestrategypolicy7FamilyHomes,setsthepolicies:

• Atleast60%2ormorebedrooms• Atleast10%,20%or30%ofunitswith3,4or5bedroomsdependingontheareaofthe

development• Thismaybesplitbetweenprivate,socialandintermediatehousing• Amaximumof5%asstudiosandonlyforprivatehousing

4.2.8 SavedSouthwarkPlanpolicy4.2Qualityofresidentialaccommodationrequiredevelopment,sets the following policy:

• Achievegoodqualitylivingconditions

4.2.9 SavedSouthwarkPlanpolicy4.4Affordablehousing,setsthepolicies:

• The affordable housing must be an appropriate mix of dwelling type and size to meet the identifiedneedsoftheborough

• Theaffordablehousingshouldnotbedistinguishablefromtheprivatehousingdevelopment

4.2.10 SavedSouthwarkPlanpolicy4.5Wheelchairaffordablehousingsetsthepolicy:

• Foreveryaffordablehousingunitwhichcomplieswiththewheelchairdesignstandards,onelessaffordablehabitableroomwillberequiredthanotherwisestatedinpolicy4.4[nowpolicy6ofthecorestrategyandpolicyBH3oftheAylesburyAreaActionPlan]

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4.2.11 AylesburyAreaActionPlanpolicyBH4Sizeofhomessetsthepolicies:

• Amaximumof3%ofstudiosallinprivatetenure• Atleast70%ofhomestohavetwoormorebedrooms• Atleast20%ofhomestohavethreebedrooms• Atleast7%ofhomestohavefourbedrooms• Atleast3%ofhomestohavefiveormorebedrooms

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4.3Additionalguidance

Tenure split

Developmentsofunder15units

4.3.1 Forsmallerdevelopmentsof10-14unitsitwillnotalwaysbepossibletogetamixofsocialand intermediate housing because of high management and maintenance costs. It is often expensiveforregisteredproviderstomanageandmaintainsmallnumbersofunitsinprivatedevelopments.Asaresult,inthesecircumstances,wemayallowalloftheaffordablehousingtobeprovidedaseithersocialrentedorintermediatehousing.Thiswillbedecidedonasitebysitebasis,takingintoaccounttheoverallhousingneed,thelocationofthesiteandanysiteconstraints.

4.3.2 Weadviseapplicantstodiscusswithusassoonaspossiblethetenureofsmallerschemes.

Student schemes

4.3.3 Thesamepoliciesandguidanceasapplytoconventionalaffordablehousingapplytotheaffordablehousingelementofstudentdevelopments.TheaffordablehousingprovidedaspartofastudentdevelopmentwillbesplitbetweensocialrentedandintermediatehousinginaccordancewithsavedSouthwarkPlanpolicy4.4,AylesburyAreaActionPlanpolicyBH3andCanada Water Area Action Plan policy 22.

Mix of housing sizes

4.3.4 Wewanttoprovidearangeofhousingsizestomeettheneedsofthecommunity.

4.3.5 Corestrategypolicy7Familyhomes,requiresaleveloffamilyhousingbasedontheareawheretheschemeisproposedandtheabilityofthedevelopmenttoprovideamenityspaceforfamilies.AylesburyAreaActionPlanpolicyBH3TenuremixsetsoutthepolicyfortheAylesbury.Canada Water Area Action Plan policy 22 Affordable homes repeats the core strategy policy.

4.3.6 Corestrategypolicy7allowsthefamilyhousingtobesplitbetweenprivate,socialandintermediate housing as our housing studies show that there is a need for more family homes across all tenures.

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4.3.7 Studioflatsarenotsuitableforaffordablehousing.Corestrategypolicy7,AylesburyAreaActionPlanpolicyBH4andCanadaWaterAreaActionPlan22onlyallowstudiosasprivatetenure.Wewillnotacceptstudioflatsasaffordablehousingbecausetheydonotmeetanidentifiedneed.However,privatestudioflatsdogeneratearequirementforaffordablehousingjustlikeanyothersizeofunitiftheyarepartofadevelopmentof10ormoreunits.Theythereforecounttowards the calculation of how many habitable rooms are required as affordable housing.

4.3.8 Somesmallerschemesmayhavetoofewaffordablehousingunitstoallowforamixofunitsizeswithintheaffordableunits.Inthesecircumstances,theaffordablehousingunitswillberequiredtohaveonemorebedroomthanthemajorityoftheprivateunitsinthedevelopment.Forexampleifmostoftheprivateunitshavetwobedrooms,wewouldrequiretheaffordableunitstohavethreebedrooms.Thisisbecausethereisagreaterneedforlargersizedfamilydwellingswithin the need for affordable housing.

4.3.9 Thesamepoliciesandguidanceasapplytoconventionalaffordablehousingapplytotheaffordablehousingelementofstudentdevelopments.Theaffordablehousingelementofstudentschemeswillberequiredtomeetthepoliciesincorestrategypolicy7,CanadaWaterAreaActionPlanpolicy22andAylesburyAreaActionPlanpolicyBH4.

4.3.10 Weadviseapplicantstodiscusswithusassoonaspossiblethedwellingmixofyourscheme.

Wheelchair affordable housing

4.3.11 SavedSouthwarkPlanpolicy4.5allowsonelessaffordablehabitableroomforeveryaffordableunit which complies with our wheelchair standards. There is a need for more family sized wheelchairunitsandsoweencourageapplicantstoprovidemore3bedroompluswheelchairunits,particularlywheelchairaffordablehousing.WealsoencourageapplicantstospeaktoourOccupationalTherapistwhocanprovidemoreadviceonthetypeofwheelchairhousingneeded.

4.4Monitoringandreview

4.4.1 WemonitorthemixofnewdwellingsthroughourAnnualMonitoringReport(AMR).Thisincludesindicatorsontheamountofdwellingswhicharestudios,onebedroom,twobedrooms,3bedroomsand4bedroomsplus.Wealsomonitorthesizeofdwellingbytenuretypetomonitorhowmuchofeachsizeofdwellingsareprivate,socialrentedandintermediate.Thishelps us to see whether we need to amend our policies to ensure that the type of housing deliveredmeetsourhousingneed.

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5. THE QUALITY AND DESIGN OF AFFORDABLE HOUSING

5.1 Our strategy

5.1.1 Wewanttoensurethatnewdevelopmentsareofahighqualitydesigntohelpcreateplaceswherepeoplewanttolive.ThiswillhelpmeettheSouthwark2016andcorestrategyobjectiveofmakingourboroughabetterplaceforpeople.Thesamedesignconsiderationsapplytoaffordablehousingastomarkethousing.

5.2 Our policies

5.2.1 Corestrategypolicy7,savedSouthwarkPlanpolicies4.2and4.4,andAylesburyAreaActionPlanpolicyBH5setoutourkeypoliciestoensurehighqualityhousing.TherearealsootherrelevantrelatedpoliciesinotherLDFdocumentsincludingcorestrategypolicies5and12,andsavedSouthwarkPlanpolicies3.2,3.12and3.13.Thereisalsoadditionalguidanceinoursupplementaryplanningdocumentsforresidentialdesignstandards,designandaccessstatements,andsustainabledesignandconstruction.

5.2.2 Corestrategypolicy7Familyhomes,setsthepolicy:

• AlldevelopmentwillbeexpectedtomeettheCouncil’sminimumoverallfloorsizes

5.2.3 SavedSouthwarkPlanpolicy4.2Qualityofresidentialaccommodationrequiresthatresidentialdevelopment:

• Includeshighstandardsof:[withinalistof7requirements]• Space including suitable outdoor/green space

5.2.4 SavedSouthwarkPlanpolicy4.4Affordablehousing,setsthepolicy:

• Theaffordablehousingshouldnotbedistinguishablefromtheprivatehousingdevelopment

5.2.5 Aylesbury Area Action Plan policy BH5 Type of home sets the policy for the Aylesbury:

• The standards for new housing should comply with the design guidance set out in Appendix 6.

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5.2.6 SectionA6.7.2ofappendix6setsoutatableofdwellingspacestandardsforprivate, intermediate and social rented new homes within the action area.

5.2.7 We recently consulted on an amendment to the draft Canada Water Area Action Plan to insert a policy on dwelling sizes. Consultation closed on 2 June 2011. We will update this section of this SPDoncewehaveconsideredtheconsultationresponsesontheCanadaWateramendment.

5.2.8 We will update this section of this SPD following consultation on the Canada Water Area Action Plan.

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5.3Additionalguidance

Design and integration

5.3.1 Weexpectaffordablehousingtobeintegratedwithmarkethousingthroughahighstandardofdesign and shared access arrangements as far as is practical.

5.3.2 Thephysicalintegrationofaffordablehousingamongmarkethousing(otherwiseknownaspepper-potting)isencouraged.However,werecognisethatpepper-pottingcancausedifficultiesinmanagingandservicingpropertiesasthiscanleadtohighhousingcostsoverandabovewhatisconsideredtobeaffordable.Applicantsshouldjustifywhytheaffordablehousingcannotbephysicallyintegratedamongstprivatehousing.Thisissuemostlyoccursinthedevelopmentofflats.Inthesecircumstanceswesuggestthatmarketandaffordablehousingcouldbeverticallygroupedtokeephousingcostsaffordable.Thereshouldbenodifferenceintheappearanceandqualityofaffordableunitsandprivateunits.Affordableandprivatetenantsshouldhaveequalaccesstocommunalfacilitiessuchassharedgardensandparkingareas.Affordablehousingshouldbecarefullydesignedsoitcanbeeasilymaintained.Highservicechargesandmaintenancecostsassociatedwithbadlydesigneddevelopmentscanaffecttheaffordability of housing for residents.

5.3.3 Applicantsarestronglyencouragedtodiscussmaintenanceandmanagementissueswithapartnerregisteredprovideratanearlystageinthedesignprocesstomakesurethatthedesignofthedevelopmentiscostefficient,withoutcompromisinghighqualitydesign.

5.3.4 Westronglyencourageapplicantstodiscussatanearlystagethedesignofdevelopmentsthatincludeaffordablehousing.Pleasealsorefertosection3.5oftheResidentialDesignStandardsSPD 2008 for further information.

Dwelling sizes

5.3.5 Corestrategypolicy7highlightstheimportanceofensuringthatallnewdevelopmentisofahighqualitywithgoodlivingconditions.Minimumfloorareastandardsensureanadequateamountofspaceisprovidedinresidentialdevelopmenttoachieveapleasantandhealthylivingenvironment.ThisisalsoapriorityfortheMayor,who,throughthedraftLondonPlanrequiresminimumspacestandardsinordertomakenewhomesprovidegoodlivingconditionsfordifferent sized households. We will update this section of the SPD once the draft replacement London Plan is adopted.

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5.3.6 Tabletwobelowsetsouttheminimumoveralldwellingsizesweexpectalldevelopmenttomeet.Theseareminimumstandardswhichdevelopersareencouragedtoexceed.Theyarein line with the requirements of the draft replacement London Plan and are based on the numberofpeopleexpectedtoliveinahome.Thismeansdevelopersshouldstatethenumberofoccupiersahomeisdesignedtoaccommodate.Acrossascheme,themixofdwellingtypesshouldcaterforthefullrangeofhouseholdsizes.Wewillassessthisusingtheaveragedwellingsizessetoutintabletwo.Thestandardswillapplytobothaffordableandprivatehomes.Thisisalso being updated in our Residential Design Standards supplementary planning document. We finishedconsultingontheResidentialDesignStandardsSPDon2June2011.WewillbelookingattheconsultationresponsesandpreparingthefinalResidentialDesignStandardsSPDforadoption in September 2011.

5.3.7 DevelopmentwithintheAylesburyactionareamustmeetthestandardsreferredtoinpolicyBH5 and set out in appendix 6 of the AAP.

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Table 5: Minimum dwelling sizes

Developmenttype Dwelling type (bedroom/persons)

Essential GIA (sqm)

Flats Studios 36

1b2p 502b3p 612b4p 70

2baverage 66

3b4p 74

3b5p 86

3b6p 95

3baverage 85

4b5p 90

4b6p 99

4+baverage 95

2 storey houses 2b4p 83

3b4p 87

3b5p 96

3baverage 92

4b5p 100

4b6p 107

4+baverage 104

3storeyhouses 3b5p 102

4b5p 106

4b6p 113

4+baverage 110

Whendesigninghomesformorethansixpersonsdevelopersshouldallowapproximately10sqmperextra person.

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5.4Monitoringandreview

5.4.1 WemonitorsomeaspectsofdesignthroughourAnnualMonitoringReport(AMR).ThisincludesmonitoringtheamountofunitsthatmeettheLifetimeHomesStandards,ourwheelchairstandardsandenvironmentalstandards.Wedonotcurrentlymeasurethenumberofunitswhichmeetorexceedtheminimumfloorareas.WearelookingatthisaspartofourcurrentreviewoftheAMRindicatorstotakeintoaccountthenewindicatorsfromthecorestrategyandlookatthebestwayofmeasuringhownewresidentialdevelopmentisbuilttoahighqualityofdesign.

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6. WHERE SHOULD THE AFFORDABLE HOUSING BE PROVIDED?

6.1 Our strategy

6.1.1 Werequiredevelopmenttoprovideasmuchaffordablehousingasisreasonablypossiblewhilstalsomeetingtheneedforothertypesofdevelopmentandencouragingmixedcommunities.

6.2 Our policies

6.2.1 Corestrategypolicy6Homesforpeopleondifferentincomes,setsthepolicies:

• Requiringasmuchaffordablehousingondevelopmentof10ormoreunitsasisfinanciallyviable• Providingaminimumof8558netnewaffordablehomesbetween2011and2026

6.2.2 Corestrategypolicy8Studenthomes,setsthepolicy:• Requiring35%ofstudentdevelopmentsasaffordablehousinginlinewithpolicy6andfigure28[ofthecorestrategy]

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6.3Additionalguidance

The sequential test

6.3.1 Wefollowasequentialapproachtomakesurethatwegetasmuchaffordablehousingaspossible. This is in accordance with the sequential approach required by national and regional policy.

6.3.2 Thesequentialapproachissetoutbelow.Thisappliestoalltypesofhousingdevelopmentincludingsmallschemesandstudenthousingdevelopments:

1. Allhousing,includingaffordablehousingshouldbelocatedonthedevelopmentsite.2. Inexceptionalcircumstanceswemayallowtheaffordablehousingtobeprovidedoff-site.

Inthesecircumstanceswerequirethataffordablehousingisprovidedonanothersiteorsitesinthelocalareaoftheproposeddevelopment.

3. In exceptional circumstances we may allow a pooled contribution in lieu of on-site of off-siteaffordablehousing.Inthesecircumstanceswerequireapaymenttowardsprovidingaffordable housing instead of the affordable housing being built as part of the proposed development.

6.3.3 Wherewealloweitheranoff-siteorpooledcontributionprovision,atleastasmuchaffordablehousingmustbeprovidedaswouldhavebeenprovidediftheminimum35%affordablehousingpolicyrequirementwereachievedon-site.

6.3.4 Affordablehousingshouldbedeliveredatthesametimeasprivatehousing.Thisshouldbethecaseforon-site,off-siteandapooledcontributionprovision.

On-siteprovision

6.3.5 Thegeneralpresumptionisthataffordablehousingshouldbeprovidedon-site.Whereanapplicantsuggeststousthattheycannotprovidetheminimumpolicyrequirementonsite,thefirstoptionistodiscusswiththecouncilhowtoensureasmuchaffordablehousingaspossibleisprovideonsite.Thismayincludevaryingtheaffordablehousingtenuremixtobeprovidedbetweenintermediateandsocialrentedhousing.Applicantsarerequiredtosubmitafinancialappraisal to demonstrate why the policy requirement amount or mix of affordable housing cannotbedeliveredon-site.Furtherinformationonfinancialappraisalsinsetoutinsection8.3ofthisSPD.Ifthefinancialappraisaldemonstratestooursatisfactionthattherequiredlevelormixofaffordablehousingisnotfinanciallyviableon-site,wemayallowoff-siteprovisionorapooled contribution.

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Off-siteprovision

6.3.6 Insomecasesapplicantsmaydemonstratetouswhytheaffordablehousingcannotbebuilton-site.Applicantsmustdemonstratethistousthroughafinancialappraisal.Whereweaccept that the best option for the affordable housing is to be built off-site (for example due to site constraints) we will require the affordable housing to be built on another site near the development.

6.3.7 Wewillonlyconsideroff-siteaffordablehousingwhereanappropriatesiteorsiteshavebeenidentifiedneartothedevelopmentsite.Werequireapplicantstohavesecuredplanningpermission for the required amount of off-site affordable housing before any occupation of the markethousingdevelopment.Wealsorequiredthatnomorethan50%ofthedevelopmentwillbeoccupiedbeforetheaffordablehousingunitsarecompletedandhandedovertotheregisteredprovider.Thiswillbesetoutinthesection106agreement.

6.3.8 Wewillrequiretheoff-siteaffordablehousingtobebuiltandreadyforoccupationatthesametimeastheon-sitemarkethousing.Wewillalsorequirethatoff-siteaffordablehousingisadditionaltowhatwouldhavecomeforwardthroughastandarddevelopmentonthatsite(ieitresultsinanetgainofaffordablehousingunitsabovestandardpolicyrequirements).Thiswill usually result in a higher percentage of affordable housing on any sites that are used for the deliveryofoff-siteaffordablehousing.

Example3:Calculatingtherequirementforoff-siteaffordablehousing

• Adeveloperisrequiredtoprovide40habitableroomsoff-site,asithasbeendemonstratedtooursatisfactionthattheseroomscannotbeprovidedon-site• Theoff-siteschemeproposeddevelopmentistobuilt50residentialunits,madeupof145habitable rooms• Corestrategypolicy6requiresaminimumof35%ofhabitableroomstobeaffordableonallsitesofover15units• 35%of145habitableroomsis50.75habitableroomsrequiredasaffordable• Becausethefigureis50.75,werounduptherequirementto51habitablerooms• Thedeveloperisrequiredtoprovide40habitableroomsaspartoftheoff-siteprovisionplusthe 51 habitable rooms required as part of standard policy

Intotalthedeveloperhastoprovide91habitableroomsasaffordablehousing(i.e.overallthiswouldbe63%ofthescheme)

Pooling contributions for affordable housing

6.3.9 NewhousingdevelopmentsinSouthwarkmay,inexceptionalcircumstances,provideaffordable

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housingbymakingapooledcontributioninsteadofprovidingtheaffordablehousingon-siteorthroughthedevelopersecuringtheirownoff-siteaffordablehousingsite.Thesequentialtestmustbefollowedtojustifythatatleastasmuchaffordablehousingaswouldhavebeenprovidediftheminimum35%affordablehousingrequirementwereachievedon-site.Aminimumof£100,000ofpooledcontributionperhabitableroomofaffordablehousingwillbe required. To ensure that the maximum reasonable proportion of affordable housing is negotiatedoneachdevelopmentwewilldeterminetheexactamountrequired(above£100000peraffordablehabitableroom)usingarobustviabilityassessment.Ourcurrentcalculationsandevidencebasedemonstratethatthisapproachisjustifiedandreasonable.Thisissetoutintwoofourstudies:Paymentsinlieuofon-siteaffordablehousing:viabilitytesting,andSouthwarkstudentstudy:implementation.Bothofthesecanbeviewedonourwebsiteat:

http://www.southwark.gov.uk/ldf/evidence

6.3.10 Thisapproachwillhelpustodeliverthecorestrategy,the‘HousingStrategy2009–2016’andtheCommunityStrategy‘Southwark2016’byimprovingplaces,increasinghousingchoice,providingnewhomesandimprovingmixedandbalancedcommunities.ThiswillenableSouthwarktocontinuetomeetLondonplanandcorestrategyaffordablehousingtargets.WithoutthisapproachweareunlikelytomeetourtargetsduetothechangesintheeconomicenvironmentandreducedprovisionofGovernmentandHomesandCommunitiesAgencyfundingchanges.ThisSPDguidanceistobeappliedaspartofdeliveringpolicy6andpolicy8ofthecorestrategyandsavedSouthwarkPlanpolicy4.4andmustbeweighedupalongsideallofthepoliciesinthedevelopmentplanandtheLocalDevelopmentFramework.Thisisoneelementintheconsiderationofwhetheraresidentialelementofadevelopmentisacceptableandshouldbeweighedupalongsidealloftheothermaterialconsiderations.Thedeveloperwillberequiredtoprovideon-siteaffordablehousinginlinewiththeLocalDevelopmentFrameworkifthepooledcontributioncannotbeprovidedassetoutinthisSPD.

6.3.11WeneedtocomplywithnationalpolicyandtheMayor’spolicyofpromotingchoicesandqualityinhousingandcreatingsustainable,inclusiveandmixedcommunities.ThisapproachwillhelptodeliverLondonPlanpolicies3A.5Housingchoiceand3A.9Affordablehousingtargets.Paragraph29ofPlanningPolicyStatement3Housingandpolicy3A.10andparagraphs3.55and3.56oftheLondonPlan2008setoutthataffordablehousingshouldbeprovidedfirstlyon-site,thenoff-siteandonlytheninexceptionalcircumstancesasanin-lieupayment.However,paragraph29ofPPS3makesitclearthatwhereitcanberobustlyjustified,off-siteprovisionorafinancialcontributioninlieuofon-siteprovision(ofbroadlyequivalentvalue)maybeacceptedas long as the agreed approach contributes to the creation of mixed communities in the local authorityarea.WeconsiderthatthepooledcontributionisconsistentwiththestrategyofPPS3aswewillbeprovidingadditionalhomes,increasinghousingchoice,affordablehousingandfamilyhousingtomeetneedswithinSouthwarkandLondon.

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6.3.12 Paymentofthepooledcontributionwillbeinstagesbasedontheprogressofthedevelopmentfromobtainingplanningpermission,tocommencementofconstruction,completionandthroughstagesofoccupation.25%ofthecontributionshouldbepaidpriortoimplementation,50%shouldbepaidpriortopracticalcompletion,andtheremaining25%shouldbepaidpriortofirstoccupationofthedevelopment.Thetriggersforpaymentaretoensurethatthereisnonegativeimpactonprovisionofaffordablehousing.Affordablehousingwouldnormallybeexpectedtobeprovidedalongsidetheinitialprivateunits.Thereforethetriggerwillenableasimilarleveloftimelyaffordablehousingtobecompleted.

6.3.13 Thepooledcontributionwillbesecuredaspartofthesection106legalagreementforthedevelopmentandassociatedplanningpermissionwhichwillexpire2yearsfromthedategranted. This pooled contribution is required in addition to the section 106 requirements of the corestrategy,SouthwarkPlan,theSection106PlanningobligationsSPDandanyotherLocalDevelopmentFrameworkrequirements.Thesection106agreementmustspecifythepooledcontributionsumandthedevelopmentswherethiswillbespent.Toreceivesupport,schemeswillberequiredtodemonstratequality,deliverabilityandvalueformoney.Thesewillbebuiltbythecouncilalone,orbythecouncilinpartnershipwitharegisteredprovider/developer.

Calculating the pooled contributions

6.3.14 Fordevelopmentsof15ormorehousingunits,therequiredamountofaffordablehousing(basedonhabitableroomswillbemultipliedby£100,000tocalculatehowmuchthepooledcontributionshouldbe.Thesemaybehigherifthefinancialappraisalsdemonstratesthatahighersumcanbeachieved.

6.3.15 Fordevelopmentsofbetween10and14units(includingmixed-useschemeswherethereareonlybetween10and14residentialunits)thein-lieupaymentwillbecalculatedby:

• Findingoutwhatsizemostofthehousingunitsare(iftheyaremostlyonebedroom,twobedrooms,threebedroomsetc)

• Calculatinghowmanyhabitableroomsareinmostofthehousingunitsinthedevelopment.Forexampleifmostoftheunitsaretwobedroomsandonelivingroom,thanmostoftheunitswillhavethreehabitablerooms

• MultiplyingthisnumberbyhowmanyaffordablehousingunitsarerequiredtobeprovidedinaccordancewithsavedSouthwarkPlanpolicy4.4

• Multiplyingthisby£100,000.Incaseswherethefinancialappraisaldemonstratesthatahighersumcanbeachieved,thefigurewillneedtobemultipliedbythehigherpaymentperhabitableroom.

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6.4Monitoringandreview

6.4.1 ThroughourAnnualMonitoringReportwemeasurehowmuchaffordablehousingisdelivered.Thisishousingthathasbeendeliveredon-siteoroff-site.Wealsomeasurehowmuchsection106moneywehavesecuredinlieuofon-siteaffordablehousing.Thisenablesustoseewhether our policies which normally require affordable housing on-site are being implemented. We monitor these policies to see whether we need to amend our policies through future developmentplandocuments.

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7.MAXIMISINGAFFORDABLEHOUSING

7.1 Our strategy

7.1.2 Werequiredevelopmenttoprovideasmuchaffordablehousingasisreasonablypossiblewhilstalsomeetingtheneedforothertypesofdevelopmentandencouragingmixedcommunities.Weapplyouraffordablehousingpoliciestoalldevelopmentof10unitsandabove.

7.2 Our policies

7.2.1 Corestrategypolicy6Homesforpeopleondifferentincomes,setsthepolicies:

• Requiringasmuchaffordablehousingondevelopmentsof10ormoreunitsasisfinanciallyviable

• Requiringaminimumof35%affordablehousingunitsondevelopmentswith10ormoreunits

• Requiringaminimumof35%privatehousingintheElephantandCastleopportunityareaandSouthBermondsey,Faraday,Livesey,Nunhead,Peckham,theLane,BrunswickParkandCamberwell Green wards. Figure 2 on page 21 shows these areas.

Figure3showsthetenuremixrequired.Thisisfigure28ofthecorestrategy.

7.2.2 SavedSouthwarkPlanpolicy3.11Efficientuseoflandsetsthepolicies:

• Alldevelopmentsshouldensurethattheymaximisetheefficientuseofland,whilst:

i.Protectingandamenityifneighbouringoccupiersorusers;andii. Ensuring a satisfactory standard of accommodation and amenity for future occupiers of the site;andiii.Positivelyrespondingtothelocalcontextandcomplyingwithallpoliciesrelatingtodesign; andiv.Ensuringthattheproposaldoesnotunreasonablycompromisethedevelopmentpotentialof, orlegitimateactivitieson,neighbouringsites;andv.Makingadequateprovisionforservicing,circulationandaccessto,fromandthroughthesite; andvi.Ensuringthatthescaleofdevelopmentisappropriatetotheavailabilityofpublictransportand other infrastructure

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7.3Additionalguidance

Assessingthesitecapacityandunderdevelopment

7.3.1 Proposalsfordevelopmentthatappeartobedesignedorsub-dividedtoavoidthethresholdatwhichaffordablehousingisrequiredmayneedtoberevisedfollowinganassessmentofthesitecapacity.Wherethisappearstobethecase,wewilllookat:

• AssessingtheapplicationagainstsavedSouthwarkPlanPolicy3.11Efficientuseofland• Lookingatwhetherappropriatedensitylevelshavebeenappliedtothesite,takinginto

accountcorestrategyPolicy5providingnewhomes• Assessing the application against the design and access statement to see if the proposed

developmentisthebestdesignsolution• Whetherthesiteisartificiallysub-dividedandwhethertheplanningapplicationshouldin

factbecoveringawiderarea

Partialdevelopment,additionaldevelopmentandphaseddevelopment

7.3.2 Inadditiontotheabove,wewillalsolookatwhethertheschemeappearstobeoneofthefollowingtypesofdevelopments:

A.Sitesthatarepartiallydeveloped

7.3.3 Wewilllookatwhetheranapplicationisanextensiontoabuildingwhichhasanexistingplanningpermission(thismaybecompleted,underconstructionoryettobeginconstruction)toseewhetheritshouldbemoreproperlyconsideredtobepartofasingledevelopment.Wewilltakeintoaccount:

• Thetimingbetweenthepreviousplanningpermissionandthenewplanningapplication,andtheextenttowhichthepreviouspermissionhasbeenimplemented

• Whetherthefreshapplicationislinkedtothepreviousapplication.Thismayincludeownership,sharedaccessorsharedbuildings,levelofoccupationandotherrelevantconsiderations.

B.Phaseddevelopments

7.3.4 Whereanapplicationforhousingissubjecttoasinglepermission,butisduetobedeliveredinphases,theaffordablehousingrequirementswillbeappliedacrosstheoverallscheme.Incaseswhere,followingthesubmissionofaviabilityappraisal,planningpermissionallowsfortheprovisionoflessthanthecorestrategyorareaactionplanrequirementofaffordablehousingintheinitialphase,wewillsetoutaprocessofre-appraisalpriortothecommencementofeachsubsequentphasetoassesswhetherthatphaseiscapableofprovidingincreasedlevelsofaffordable housing. This will be secured through the Section 106 agreement.

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C. New applications on sites with planning permission

7.3.5 Ifasitehasanexistingplanningpermissionandanewplanningapplicationissubmittedwewillalwayslookatwhetherthesitecanaccommodatetherequiredlevelofaffordablehousinginaccordancewithourpolicies.Therewillbenopresumptionthattheequivalentamountofaffordable housing will be required for the new planning permission as for the existing planning permission,aseachindividualapplicationisassessedonitsownmeritsinlinewithpolicyasisexists at that time. The amount of affordable housing required will be calculated by reference to the new total number of units (gross).

Redevelopmentofsites

7.3.6 MuchofthedevelopmentinSouthwarkisonsitesthatarealreadyusedforhousing.OftentheredevelopmentofsitescanhelpmakebetteruseoftheplotinaccordancewithsavedSouthwarkPlanPolicy3.11EfficientUseofLand.Weapplyouraffordablehousingpoliciestoredevelopmentsofexistinghousingwherethetotalnumberofunitsincreasesto10oraboveorthesiteisabove0.5hectares.Theamountofaffordablehousingrequirediscalculatedbyusingthe total (gross) number of housing units proposed in the application.

Example four

• Therearecurrently9privateresidentialunitsonasiteinCanadaWater• These9unitsarebeingknockeddownandrebuiltandafurther8unitsarealsobeingbuilt• This bring the total (or gross) number of housing units proposed in the application to 17• Inaccordancewithourpolicies,35%ofthetotalhabitableroomswithinthedevelopment

would need to be affordable• Asthedevelopmentisover15units,wewouldrequirethistobecalculatedbyhabitable

room

Mixed use

7.3.4 Weencouragemixedusedevelopments,particularlyinourtowncentres.MixedusedevelopmentshelpuselandmoreefficientlyinlinewithsavedSouthwarkPlanPolicy3.11.Forexamplehousingaboveashoporofficescanhelpmakethebestuseoflandwhilstalsoencouragingpeopletouseand/orworkintheshopsandbusinessestheylivenearto.Mixedusedevelopmentscanalsoimprovesafetyandsecuritybyhavingpeoplearoundatdifferenthoursof the day.

7.3.5 Werequireaffordablehousingonmixed-useschemesthatpropose10ormorehousingunits.In cases where planning permission has been granted for a mixed use scheme and this is

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subsequently amended through a new or amended planning application which increases theamountofresidentialuse,theamountofaffordablehousingrequiredwillneedtoberecalculatedacrossthewholescheme.Inrecalculatingtheaffordablehousingthatisrequired,thetotalnumberofhabitableroomsacrossthewholeofthesitewillneedtobetakenintoconsideration.

Live-work

7.3.6 Live-workunitscombinebothresidentialandemploymentspaceinoneunit.OursavedSouthwarkPlanPolicy1.6Live-workunits,requirestheemploymentandresidentialusestobeseparatelydefinedandcapableofoperatingindependently.

7.3.7 Wenotdoacceptlive-workunitsasaffordablehousingastheydonotmeetanidentifiedneedforaffordablehousing.However,theydogeneratearequirementforaffordablehousinglikeanyothertypeofresidentialunit.Ifthedevelopmentisformorethan10live-workunitswewillrequiretheminimumpolicyrequirementforaffordablehousingtobemet.Similarlyifthelive-workunitsarepartofamixedusedevelopmentalongsideotherformsofhousing,andtogetherthenumberofresidentialunitsandlive-workunitsexceeds10units,theminimumpolicyrequirement for affordable housing must be met.

100%ormostlyonetenureschemes

7.3.8 Historicallywehavereceivedmanyapplicationsfordevelopmentsthataremostlyor100%affordablehousingwhichhashelpedusdeliverlotsofnewaffordablehousing.However,insomeareasoftheboroughwehavefoundthatverylittleprivatehousingisbeingdevelopedand that some areas are becoming dominated by affordable housing. In order to ensure that weofferarangeofhousingchoicesincludingprivatehousingtocreatebalancedandmixedcommunities,corestrategypolicy6requireaminimumamountofprivatehousingtobeprovidedinsomeareasoftheborough.Thisisrequiredbycorestrategypolicy6.Inthesespecificareaswewillnotaccept100%affordablehousingschemesandthemaximumamountofaffordablehousingpermittedwillbe65%ofthedevelopment.Whereprivatehousingistobeprovidedinareaswiththeminimumprivatehousingpolicyinaccordancewithpolicy6ofthecorestrategy,thecouncilwillsecureitthroughaplanningagreementunderSection106oftheTownandCountyPlanningAct1990.

7.3.9 ThesavedSouthwarkPlanPolicy4.4tenuresplitwithinaffordablehousingisnormallyrequiredin100%ormostlyaffordablehousingschemes.Incaseswherethiscannotbemet,theapplicantmustdemonstratetousthespecificindentifiedneedfortheschemeandspecifictenuremix.Weencourageapplicantsfortheseschemestotalktousatanearlystageintheirpreparation.

7.3.10 Inthesecaseswewouldnormallydecidetheappropriatetenurewithintheaffordablehousingbytakingaccountof:

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• Thesitelocationincludingwhetheritiswithintheprivateandaffordablehousingpolicyarea,andtheexistinglevelsofaffordablehousinginthearea

• The need to create a mix and choice of housing across the borough

7.3.11 Ourstandardsection106(planningobligations)chargeswillalsoapplytoall100%ormostly affordable housing schemes of 10 units or more. Our Section 106 Planning Obligations SupplementaryPlanningDocumentprovidesfurtherinformation.

Estate regeneration

7.3.12 Corestrategypolicy6setsoutanoverallnetaffordablehousingtargetof8558newhomesbetween 2011-2026. This means that across the whole borough we will ensure we replace any affordable housing which is lost and build more. We also set out affordable housing targets fordifferentareaswhicharegrosstargets.Thismeansthattheydonottakeintoaccountthedemolitionofexistinghousing,justthenewhousingbuilt.

7.3.13 On some of our estate regeneration schemes we may not replace all of the affordable housing lostduringredevelopmentonthatsite.Wesetthisoutincorestrategypolicy6wherewestatethatthesame35%minimumaffordablehousingwillapplytobothnewandreplacementhousing.WehaveagreedwiththeMayorthatwemayallowthelossofaffordablehousingtoothertenuresinsomecircumstances.Theneedtocreatemixedcommunitiesandtoimprovethe quality of our existing homes means that we cannot replace all the affordable housing within estates.

7.3.14 Ourapproachtoallowthelossofaffordablehousingtoothertenureswillprovideforthecreationofmoremixedcommunitieswhilstmaintaininggrowthoverall.Thiswillhelptocreatea better mix and choice of housing in areas with high concentrations of social housing. It also allowsforinvestmentinhousingestatesacrossSouthwark,bothbyprivateprovidersandthecouncilinordertomakemoreaffordablehomesmeetstheDecentHomesStandard.Weareintheprocessofregeneratingmanyofourestatesandhaveplanstoinvestandimprovemore.

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7.4Monitoringandreview

7.4.1 WemonitorhowmuchaffordablehousingisdeliveredthroughourAnnualMonitoringReport(AMR).Thisincludesaffordablehousingdeliveredfromallsources,includingnewdevelopment,extensions,changeofuse,phaseddevelopmentsandestateregeneration.Werecordbothgrossandnetfiguressowecanseehowmuchofthedevelopmentisnetnewaffordablehousingandhow much is replacing existing affordable housing. We record housing when it is completed and so this ensures we do not double count for amended or new planning applications on a site already with planning permission.

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8.SHELTERED,SUPPORTEDANDEXTRACAREHOUSING

8.1 Our strategy

8.1.1 WewanttoprovidearangeofhousingtomeettheSouthwark2016andcorestrategyobjectivesofprovidingmoreandbetterhomes.WewanttoprovidehomesthatmeetthedifferingneedsofgroupswithinSouthwark.

8.2 Our policies

8.2.1 SavedSouthwarkPlanpolicy4.7Nonself-containedhousingforidentifiedusergroups,setsoutthatappropriatenewdevelopmentorchangesofusewhichprovidenonself-containedresidential accommodation will normally be permitted where:

i.Theneedfor,andsuitablyof,theaccommodationcanbedemonstratedbytheapplicantii.Itsprovisiondoesnotresultinasignificantlossofamenitytoneighbouringoccupiersiii. There is adequate infrastructure in the area to support any increase in residents and iv.Thedevelopmentprovidesasatisfactorystandardofaccommodation,includingsharedfacilities.Provisionmustbemadewithinthedevelopmentforadequateamenitiesandfacilitiestosupportthespecificneedsoftheoccupiers,includingstaffing,servicingandmanagementarrangements,withparticularconsiderationgiventothespecificneedsofchildren.

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8.3Additionalguidance

8.3.1 Certainmembersofthecommunitysuchastheelderly,peoplewithmentalorphysicaldisabilities,andvulnerablepeople,needtohavehousingthatcatersfortheirspecificneeds.These types of housing include:

i. Sheltered housingii. Supported housing iii. Extra care housing

8.3.2 Specialisthousingofthistypeneedstobemadeavailableatacostthatisaffordabletothepeoplethattheyareintendedtohouse.Forthisreason,therequirementtoprovideaffordablehousingwillnotnormallybeappliedtothesetypesofhousing(referalsotosavedSouthwarkPlanPolicy4.7andsection4oftheResidentialDesignSPD).

8.3.3 Ourpriorityistoprovideconventionalhousingthatmeetsgeneralneeds,wehavetomakesurethat any specialist housing is actually needed in the borough for those people that it is intended tohouse.Thisistomakesurethatlandisdevelopedtobuildhousingthatisreallyneeded,morespecificallyaffordablehousingandfamilyhousing.

8.3.4 SavedSouthwarkPlanpolicy4.7requiresapplicantstodemonstrateaneedforspecialistnon-selfcontainedhousing.ThisistomakesurethattherearepeopleinSouthwarkwhoneedthistypeofhousingandthatitisnottakingawaylandfromconventionalhousing,includingfamilyand affordable housing.

8.3.5 Forustoassessifthereisaneedforhousingtomeetspecificneeds,applicantswillberequiredto:

a. Demonstrate that there is a local need for such housingb.Provideevidencethatthehousingwillbeaffordabletothosepeoplethatitisintendedtohousec.Givedetailsofthelong-termlease,managementandmaintenancearrangementsoftheaccommodationd.Provideevidenceoftheirexperienceofdeliveringandmanaginghighqualityschemesofthetypeofhousingtheyproposetodeliver.e.Provideevidencethatthereisaconfirmedsourceofrevenuefundingforanysupportorcareelementofthescheme.ForexamplethismaybeconfirmationfromSouthwarkHealthandSocialCare.

8.3.5 Ifsatisfactoryevidenceofanidentifiedlocalneedforspecialistaccommodationisnotsubmittedwithaplanningapplication,normalaffordablehousingrequirementswillapplyinaccordancewithcorestrategypolicies6and8andsavedSouthwarkPlanpolicy4.4.

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8.3.6 Applicantsarestronglyencouragedtodiscussproposalsforhousingforspecificusergroupswith us at an early stage.

8.3.7 Ifhousingforspecificneedsisconvertedtogeneralneedshousinginthefuture,normalaffordable housing requirements will apply.

8.4Monitoringandreview

8.4.1 WemonitorhowmuchofthesetypesofhousingarecompletedthroughourAnnualMonitoringReport (AMR). These are normally recorded within the indicator measuring the amount of residential institutions (D1 Use Class) or within the indicator for the amount of hostels.

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9.FINANCINGANDSECURINGAFFORDABLEHOUSING

9.1Ourstrategy

9.1.1 Wewanttofullyimplementouraffordablehousingpoliciesandensurethatasmuchaffordablehousingasisreasonablypossibleisbuilt.OurcorestrategyandsavedSouthwarkPlanpoliciesset out how we secure affordable housing through section 106 planning obligations.

9.2Ourpolicies

9.2.1 Corestrategypolicy6Homesforpeopleondifferentincomes,setsthefollowingpolicies:

• Requiringasmuchaffordablehousingondevelopmentsof10ormoreunitsasisfinanciallyviable

9.2.2Corestrategypolicy14Implementationanddeliverystates:

• Usingplanningobligationstoreduceormitigatetheimpactofdevelopments

9.2.3 SavedSouthwarkPlanpolicy2.5Planningobligations,setsoutthecaseswhentheCouncilwillenter into planning obligations. These include:

• Secureanappropriatemixofuseswithinadevelopment

9.2.4 Italsosetsoutthatobligationsmay:

• Restrictionondevelopment;and/orallorpartofadevelopment• Beafinancialcontribution.

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9.3Additionalguidance

Howwillaffordablehousingbefinanced?

9.3.1 Assetoutcorestrategypolicy6werequireasmuchaffordablehousingasisfinanciallyviable,withthepolicyrequirementbeingaminimumof35%affordablehousing.OurAffordableHousingViabilityStudy2010showsthataminimumof35%affordablehousingondevelopmentsof10ormoreunitsisaviable,implementablepolicyoverthe15yeartimeframeof the core strategy (2011-2026).

9.3.2 Wherethepolicyrequirementcannotbemet,thefirstoptionistodiscusswiththecouncilhowtoensureasmuchaffordablehousingaspossibleisprovidedonsite.Thismayincludevaryingtheaffordablehousingtenuremixtobeprovidedonsitebetweenintermediateandsocialrented housing.

Financial appraisals

9.3.3 ApplicantsarerequiredtosubmittheGLA’sDevelopmentControlToolkitModeltodemonstratewhythepolicyrequirementamountormixofaffordablehousingcannotbedelivered.TheGLAToolkitcomprisesofaspreadsheetwithboroughspecificdefaultsforinputswhichapplicantscanoverridewiththeirownactualinputsifdesired.Thefinancialappraisalindicatesthefinancialviabilityofdeliveringaffordablehousingonanyparticularscheme.Thisisbasedontheresiduallandvaluewhichamountstotherevenuefromallhousesalesminusallnon-landcosts.Thisvalueshoulddemonstratethatthemaximumreasonableamountofaffordablehousingisbeingachieved.

9.3.4 TheGLAToolkitisnotsuitablefordealingwithstudenthousingschemes.Insteadsomeexistingcommercialtoolsmaybebetterabletomoreaccuratelyassesstheviabilityofstudenthousingschemes where applicants suggest that the policy requirement amount of affordable housing cannot be met.

9.3.5 Whenwereceivefinancialappraisals,wewillassessthemtomakesurethatweagreewiththeestimationsthathavebeenmade,particularlyaboutbuildcostsandhouseprices.Theresultsoftheseassessmentswillbeusedwhenwearenegotiatingandmakingdecisionsonplanningapplications.

9.3.6 Unlessthefinancialappraisaljustifiestooursatisfactionwhythedeliveryoftherequiredlevelofaffordablehousingisnotfinanciallypossible,wewillrequirethatitisprovidedon-site.Intheexceptionalcaseswewillallowoff-siteprovisionorapooledcontributioninlieuofon-siteaffordablehousing.Thiswillalsobesubjecttoafinancialappraisal.

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9.3.7 Inmakingourdecisiononwhetherweagreewiththeestimationsthathavebeenmadeinthefinancialappraisals,wewilltakeintoconsiderationgenuinelyabnormalsitecoststhatcouldnotreasonablyhavebeenanticipatedwhichmayjustifyareductioninthelevelofaffordablehousing.Examplesofabnormalsitecostsareunexpectedcostsassociatedwiththeextensivepreservationofarchaeologicalremainsorextensiveremediationofcontaminatedland.

9.3.8 Wewillexpectthattheapplicanthastakenintoconsideration:

• Theneedtoprovideaffordablehousingandcostsassociatedwithotherknownpolicyrequirements such as renewable energy and section 106 payments in accordance with our section106toolkit

• Anyconstraintsassociatedwiththesite,suchasifithasbeencontaminatedbypreviousindustrial uses or is in an archeological priority zone

• Standarddevelopmentcostssuchas:

» demolition

» landscaping

» surveyse.g.archaeologicalorecological

» ground conditions

» drainageorfloodpreventionmeasuresand

» noiseabatementmeasures,i.e.earthbunds,etc.

9.3.9 Applicantswillberequiredtopayforthecostsassociatedwithcarryingoutfinancialappraisalsand our reasonable costs associated with our subsequent assessment of them. This is because thefinancialappraisalseekstojustifytheplanningmeritsofreducedaffordablehousingprovisionoranoff-siteorpooledconrtributioninlieuofon-siteaffordablehousingprovision,asan exception to adopted planning policy.

Reviewingviability

9.3.10 Insomecases,basedonafinancialappraisalwemaydecidetograntplanningpermissionforaschemewhichisnotcompliantwithourpolicyrequirementof35%affordablehousingorourpolicies on tenure within the affordable housing. In these cases we may require a clause in the section106agreementthatwouldrequireaviabilityreviewpriortoimplementationusingtheGLA’sDevelopmentControlToolkitModel(orinstudentschemesasuitablecommercialviabilitytool)toseewhethertheschemecouldatthattimeprovidemoreaffordablehousingorothersection106contributionthanwouldhavebeenpossibleatthetimeplanningpermissionwasgranted.

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What happens once it is built?

9.3.11 Onceaffordablehousingisbuiltbyaprivatedeveloper,wewillexpectittobetransferredtoaregisteredproviderorotheraffordablehousingprovider.WehavealistofregisteredproviderswithsignificantdevelopmentandhousingmanagementroleinSouthwark.Theup-to-datelistisonourwebsiteat:http://www.southwark.gov.uk/ahspd

9.3.12 Incircumstanceswhereapplicantsarelookingforapartnerregisteredprovider,wewillusuallyreferthedevelopertoaregisteredprovideronthislist.Thedevelopershouldselltheaffordablehousingtotheregisteredprovideroraffordablehousingprovideratapricewhichaccordswiththecapitalfundingthattheregisteredprovideroraffordablehousingprovidercanraise.Theamountoffundingthataregisteredprovideroraffordablehousingprovidercanraiseisbasedon the future income that they will get from the affordable units from rents. Appendix A of this SPDsetsoutguidanceontheamountofmoneypayablebyaregisteredprovidertoadeveloperfor social rented housing.

Public subsidy

9.3.13 TheHomesandCommunitiesAgency(HCA)currentlyallocatepublicsubsidy.OurroleistoadvisetheHCAifwesupportanapplicationforpublicsubsidy.TheHCAreceivebidsfromitsInvestmentPartners,mainlyregisteredprovidersandwillsupportthosethatbestmeetitsfundingcriteriaofvalueformoney,quality,adherencetopolicyandassuranceofdelivery.

9.3.14 Aspartofthisprocess,registeredprovidersconsultwithuspriortosubmittingabidandtheHCAwillconsultustoseekourviewsonhowthebidswilladdresslocalprioritiesandhousingneed.

Securing affordable housing

How will affordable housing be secured - Section 106 Planning Contributions?

9.3.15 Whereaffordablehousingistobeprovided,thecouncilwillsecureitthroughaplanningagreementunderSection106oftheTownandCountyPlanningAct1990.

9.3.16 Applicantsarestronglyadvisedtoagreethedetailsoftheaffordablehousingtobeprovidedwith us at the pre-application stage and certainly before a decision is made on the application.

Thiswouldnormallycoverthefollowingissues:

• Location of the affordable units on the site• Affordabilitythresholds–housingwillhavetobeavailableatthecostsoutlinedinsection

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2.1and2.2ofthisSPD.WewillalsoensurethatintermediatehousingisavailabletohouseholdsinSouthwarkinaccordancewiththeannualhouseholdincomerangemid-points for intermediate housing units set out in table one in section 2.1.

• Thatnomorethan50%ofthedevelopmentwillbeoccupiedbeforetheaffordablehousingunitsarecompletedandhandedovertotheregisteredprovider

• Number,tenureandsizeoftheaffordablehousingunits• Standards which the affordable housing units must meet • Terms to ensure that we secure local authority nomination rights• The retention of social housing in perpetuity –to ensure that all the dwellings remain

permanently,solelyandexclusivelyavailabletomeettheidentifiedaffordablehousingneed

9.3.17 Where100%affordablehousingschemesareproposedthesection106agreementwillincludeconditionsthatensurethatthatiftheschemeisnotdevelopedsolelyforaffordablehousingitwillbecomessubjecttonormalaffordablehousingrequirements.

9.3.18 Allrelevantmatters,includingarrangementsforservicecharging,shouldberesolvedbetweenallpartiesbeforeasection106agreementissigned.Westronglyencouragetheinvolvementofpartnerregisteredprovidersindraftingsection106agreements.Wherearegisteredproviderisnotinvolved,thesection106agreementwillbeusedtocontrolaffordabilitythresholdsandoccupancysothattheaffordablehousingwillbeavailabletothoseinneedofit.

Howwillprivatehousingbesecuredinareaswiththeminimumprivatehousingpolicy?

9.3.19 Whereprivatehousingistobeprovidedinareaswiththeminimumprivatehousingpolicyinaccordancewithpolicy6ofthecorestrategy,thecouncilwillsecureitthroughaplanningagreementunderSection106oftheTownandCountyPlanningAct1990.

Keeping affordable housing affordable

9.3.20 GiventhehighdemandforaffordablehousingintheboroughandtheneedforSouthwarktomeetourstrategichousingrequirements,wewillresistthelossofaffordablehousingwherepossible.

Social rented housing

9.3.21 Wewillensure,throughasection106agreement,thatsocialrentedhousingremainsbothaffordableandavailabletothoseinlocalhousingneedinthelongterm.Thisisreferredtoasretaining affordable housing ‘in perpetuity’.

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9.3.22 Measureswhichhelptomakesurethatweretainaffordablehousinginperpetuityarethrough:

• Theinvolvementofaregisteredproviderinthedevelopmentandmanagementofascheme• Nominationsagreementsbetweenthelocalauthorityandregisteredprovider• Section106Agreements,signedbeforeplanningpermissionisgrantedtoensurethatthe

typeofuseandapprovedtenuremixismaintained• Securing the tenure mix through the Section 106 Agreement

Intermediate housing

9.3.23 Werecognisethebenefitsofhelpingpeoplebecomehomeownerssoweallowintermediatehousingthatissharedownershiptobe‘staircased’to100%.Thismeansthathouseholdsinsharedownershiphousingcaneventuallybuytheirhomeoutright.However,wealsorecognisethatintermediatehousingneedstobeprovidedforfuturegenerationsinhousingneed.

Other priorities

9.3.24 Allmajorapplicationsarerequiredtomeetourminimumsection106requirements.Thesearesetoutinthetoolkitwhichsupportsoursection106planningobligationssupplementaryplanning document 2007.

9.3.25 Theremaybecircumstanceswhere,aftertheminimumsection106requirementsaremet,afinancialappraisalshowsthatitisnotviabletoprovidethefullpolicyrequirementofaffordablehousingduetotheschemeprovidingotherexceptionalcommunitybenefits.Theapplicantmustdemonstratetousthatthecommunitybenefitsareadditionaltothestandardminimumsection106requirementsandthattheschemeisexceptionallybeneficialtothewidercommunityandmeetsthecouncil’sobjectives.

9.3.26 Intheseexceptionalcircumstanceswemayreviewthelevelsofaffordablehousingtobeprovidedaspartofascheme,ifitissatisfactorilydemonstratedthatthereisanidentifiedneedforsuchfacilities,theirwiderbenefitandthatitisadditionaltotheminimumsection106requirements.Wewillrequireapplicantstosubmitafinancialappraisaltodemonstratewhytheaffordablehousingcannotbeprovidedduetothecostofthecommunitybenefitstobedelivered.

9.3.27 Applicantsarestronglyencouragedtodiscusssuchtypeofproposalswithusatanearlystage.

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10. MAKING AN APPLICATION

10.1Pre-applicationadvice

10.1.1 We strongly encourage applicants to discuss proposals with us before submitting a planning application.

10.1.2 Weofferaformalpre-applicationadviceprocesswhichweencourageallapplicantstomakeuseof.Thiswillhelptomaketheplanningprocessmoreefficientbyallowingtheidentificationand resolution of any potential issues before the application is actually submitted. It increases thelikelihoodofasubmittedschemebeingconsideredacceptableprovidedtheprofessionaladvicereceivedfromusinformsthefinalapplication.

10.1.3 Applicantsareencouragedtocompleteourpre-applicationformandprovideasmuchinformationaspossibletoinformthepre-applicationdiscussions/advice.Wewillprovidewrittenformalpre-applicationadvicefollowingreceiptofthepre-applicationenquiry.

10.1.4 Wemaymeettheapplicanttodiscusstheschemeorwemayconsiderthatareviewofthedetailedinformationsubmittedissufficientwithoutameeting.Ourwebsitelinkbelowsetsouttheserviceweofferandthecostthisservice.

www.southwark.gov.uk/downloads/download/512/request_for_pre-application_planning_advice

10.1.5 Themoreinformationthatisprovidedtousatpre-applicationstage,themoredetailedaresponsewecanprovideandthemorechancethereisthatanyconcernswiththeproposalwillbeidentifiedandresolvedbeforetheapplicationissubmittedtousformally.Developmentmanagementofficersfrequentlyseekadviceonpre-applicationsfromotherplanningteamsincludingpolicy,transport,anddesignandconservation.Whereappropriatetheyalsoinvolveotherspecialistofficersincludingourhousingteamtoprovidedetailedadvice,particularlyonaffordable housing.

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10.1.6 Thekeyaffordablehousingrelatedadvicewecanofferatpre-applicationstageis:

• Adviceontheappropriateamountandmixofaffordablehousing• Adviceonthestandardandqualityoftheproposedhousing,design,layoutandother

developmentmanagementmatters• TheHeadofTermthataSection106Agreementwillneedtocover• AdviceonRegisteredProvidersandpartnershipworking• Adviceonthelikelyfundingfortheaffordableunits• Exceptions to normal policy requirements• Assessmentofopenbookfinancialappraisalssubmittedtous

10.1.7 Theformintheweblinkabovesetsoutthekeydocumentsthatshouldbesubmittedaspartof a pre-application discussion. In order to ensure affordable housing can be considered we also require:• Totalamountofaffordablehousingproposed,calculatedinunits,habitableroomsand

floorspace (sqm)• Percentageofaffordablehousingproposedcalculatedinunits,habitableroomsandfloor

area (sqm)• Percentage of social rented and intermediate housing proposed• Number of bedrooms and floor areas within social rented and intermediate housing units• Thenumberofaffordablewheelchairunitstobeprovidedandwhetherthesewillbesocial

rented or intermediate

10.1.8 Inordertoprovideaseffectiveanddetailedpre-applicationadviceaspossible,itisalsohelpfultohave:

• Theweeklycosttooccupieroftheproposedaffordableunits,includingrealisticandaffordableservicecharges

• Detailsoftheaffordabilityandtenureoftheintermediatehomesandhowthesewillprovidefor a range of income groups

• Mechanism for ensuring adequate management of the properties.

10.2Engagingwitharegisteredprovider

10.2.1 Wecanalsoadviseandhelpwithcontactinganappropriateregisteredprovidertodeliverthe affordable housing element of a scheme at both pre-application and application stage if necessary.ThiswillbethroughcontactingoneoftheRegisteredProvidersonourscheduleinappendixC.AlltheRegisteredProvidersonthisschedulehave:

• Anexistingdevelopmentroleintheborough• Existing local infrastructure

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• ApprovedDeveloperStatuswiththeHomesandCommunitiesAgency• Asatisfactorylocalhousingmanagementservice• Nomination agreements with us

10.2.2 WereviewourlistofregisteredprovidersonaregularbasisandwewillupdateappendixCofthis SPD accordingly on our website..

10.2.3 Weencouragedeveloperstomakeearlycontactwitharegisteredprovider.Workingcloselywitharegisteredproviderhelpstoensurethathighqualityaffordablehousingcanbedelivered,which meets our affordability criteria.

10.2.4 Insomecases,aregisteredprovidermaynotbeinvolvedinthedeliveryofaffordablehousing.Whereapplicantschoosetouseotheraffordablehousingprovidersthatarenotregisteredproviders,thespecificproviderwillneedtobeapprovedbySouthwark’sDirectorofRegenerationandNeighbourhoods.Wewouldalsoencouragedeveloperstoseekadvicefromplanning and housing officers on:

• Managementandmaintenancearrangements/servicechargesforoccupiersofaffordablehousing

• Arrangementsforretainingthehousingasaffordableforsuccessiveoccupiers.

10.3Submittingaplanningapplication

10.3.1 Applicantsmustdemonstratethattheaffordablehousingintheirschemeisdeliverable.AnapplicationwillnotbeacceptedasvalidandwillnotbeassessediftheHeadsofTermshavenotbeensubmittedwiththeapplication.Wherearegisteredproviderisdeliveringtheaffordablehousing,theirdetailsandconfirmationoftheirinvolvementshouldalsobeprovided.Weexpecttheregisteredprovider’srequirementstohavebeendesignedintothescheme.

10.3.2 Wherearegisteredproviderisnottobeinvolvedinascheme,additionalinformationwillneedtobesuppliedonarrangementsforallocationofproperties,managementarrangementandservicechargesandarrangementsforpassingontheaffordablehousingtosuccessiveoccupiers.

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APPENDIXA.FINANCINGAFFORDABLEHOUSING

1.Theamountaregisteredproviderwillnormallypayforasocialrentedunit.Thistableindicateshowmucharegisteredproviderwouldnormallypayadeveloperforsocialrentedunits.Thefinalcolumn of the table shows the amount that would be paid. This amount represents the mortgage debtthataregisteredproviderwillbeabletomeetbychargingarentalincometotenantsoftheaffordableunits.Thecolumnsshowingtargetrents,on-costsandnetrentshowthecomponentsofthis sum.WewillupdatethesefiguresinlinewiththeHomesandCommunitiesAgency’supdates.

Table 6: Dwelling Size

Dwelling size

Target rent(£perweek)

On - costs(£perweek)

Net rent(£perweek)

Sum payable by a registered providertoadeveloperfortheprovisionofan

appropriately sized dwelling (£)

1 bed 98.00 37.65 60.35 57,052

2 bed 112.00 39.65 72.35 68,397

3bed 120.00 42.37 77.63 73,388

4+bed 131.00 44.40 86.60 81,864

10.5 Notes:

1. Target rents are based on the Homes and Communities Agency’s target rent formula. These affordablelevelsofrentarethoseatwhichregisteredprovidersareexpectedtochargerentsonschemesinvolvingsection106agreements.Noterentrestrictionsalsoapplytolargerunitsunder the target rent formula.

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2.Intermsofthefinancialarrangements,theCouncilwouldwishthedevelopertoprovidetherequiredamountofunits/habitableroomsatadiscounttoallowaregisteredprovidertoacquirethe affordable housing without public subsidy. The last column indicates how much a registered providerwouldbeabletoofferthedeveloperforanaffordablehousingunitofaparticularsize. 3.On-costs(thedifferencebetweentargetrentandnetrent)consistof:

•Managementcostsof£330perunitp.a.•Maintenancecostsof£975perunitp.a.• Voidsandbaddebtsat3%•MajorRepairsappliedat1%ofworkscost

Note,servicechargeshavebeenexcludedfromtheabove.

4.Thesumpayabletothedeveloperistheamountthataregisteredproviderwillpayadeveloperforaffordablehousingunitsandrepresentsthemortgagedebtthatcanbeservicedby the net rental income.

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