Boris slashes affordable housing targets for developers

Plans by the new mayor of London to slash affordable housing requirements across the Capital have been welcomed by the British Property Federation and Home Builders Federation.

Sir Simon Milton, Boris Johnson’s senior planning advisor, has articulated plans to lower affordable housing targets in London to encourage more housing development.

The British Property Federation and Home Builders Federation have both welcomed the move which will improve the viability of some developments and therefore deliver more housing overall.

Milton has said that the aim is to promote development by being less stringent on affordable housing schemes in densely developed areas.

He told Property Week: “We shouldn’t get hung up on the 50% target because even Ken with all his huffing and puffing wasn’t achieving that. The real goal has got to be maximizing affordable housing across London as a whole.”

The property industry believes that Milton’s focus on what is achieveable on developments rather than some notional target will provide more affordable housing for the capital.

Milton added: “The 50% was a Londonwide aspiration. If you look at what has been achieved, the highest is 34% across London. If you have larger sites, you have more room, I am keen to make sure that all boroughs play their part and do what they can to meet the mayor’s targets.”
Industry leaders have said that the definition of affordable housing should also be widened to include other types of housing. Products such as low-cost market homes or private rented properties can be just as affordable, but currently fall outside the current definition of affordable housing.

John Stewart, director for economic affairs at the Home Builders Federation, said: "Simon Milton's comments offer a welcome way forward for delivering an increase in housing, the key to making housing more affordable. We hope he will also look to expand on the current narrow definition of affordable housing to incorporate other types of product, such as low-cost market housing which home builders can deliver without any need for public subsidy.. These are often as affordable for first-time buyers as other tenures built through s106 agreements.”

Ian Fletcher, director for residential policy at the British Property Federation, said: ”Unrealistic demands on housing developments which the public needs achieve nothing. Affordability is determined by a person’s income, not by the type of property. There are many providers of professional rented accommodation who could benefit from the definition of ‘affordable housing’ being widened, and there are thousands of Londoners looking for rental homes who would benefit as a result.”