1. Affordable housing and Section 106 requirements
Affordable Housing
The number of homes a development must have before it is required to provide affordable housing is set by a combination of national and local planning guidance and varies depending on where the site is located. The NPPF introduced an affordable housing threshold of 10 units or more (or 0.5 hectares or more). However, in designated rural areas, local planning authorities may choose to apply a lower threshold of 5-units. East Devon District Council has chosen to apply the lower threshold.
What this means in East Devon
- In Exmouth, Sidmouth, Honiton and Seaton:
Developments of 10 or more new homes must provide affordable housing on the site.
- In all other areas (designated rural areas):
Developments of 6–9 homes must provide a financial contribution instead of onsite affordable housing.
Section 106 requirements
- For developments providing on-site affordable housing, a Section 106 agreement is needed. Planning applications must include Heads of Terms explaining the affordable housing offer and how it meets policy.
- If the developer believes on-site affordable housing is not financially viable, the Heads of Terms must explain this and include a Viability Appraisal showing why the required level cannot be met.
- Where a financial contribution is required, a Section 106 agreement or a Section 106 Unilateral Undertaking must be submitted with the application to secure payment.
If any existing buildings on the site qualify for Vacant Building Credit, the amount of affordable housing contribution you need to pay may be reduced.