New Local Plan - Issues & Options (Regulation 18)
Housing Needs Policies
Housing and Economic Needs Assessment (HENA, 2022)
21.1 It is important that new homes delivered provide for an appropriate mix of types, tenures and sizes of homes, including affordable housing (NPPF). The Housing and Economic Needs Assessment (HENA, 2022) includes an assessment of affordable housing need across the Leicester and Leicestershire authorities and also considers the appropriate mix of housing across the area focusing on sizes of homes required in different tenure groups. The HENA also includes an assessment of need for specialist accommodation for older people and the potential requirements for housing to be built to higher accessibility and wheelchair standards and considers the needs for self and custom build housing and also Gypsy and Traveller needs.
21. Affordable Housing
21.2 The NPPF categorises affordable housing into four main types:
- Affordable housing for rent: owned and managed by a Council or other Registered Provider with rent set at a level which does not exceed 80% of the local market rent or Social Rent set in accordance with the Government's rent policy.
- Starter homes: new dwellings which are available for purchase by qualifying first-time buyers and are sold at a discount of at least 20% of the market value, subject to a price cap and with restrictions on sale or letting.
- Discounted market sales: housing which is sold at a discount of at least 20% below market value with eligibility determined by local incomes and house prices and with provisions to ensure housing remains at a discount for future eligible households.
- Other affordable routes to home ownership: for those who could not achieve home ownership through the market including shared ownership, equity loans, low cost homes for sale and rent to buy.
21.3 The HENA assessed affordable housing need taking account of the NPPF definition of affordable housing. It found that Harborough's affordable housing need is:
- 254 affordable homes for rent per annum
- 185 affordable home ownership per annum
21.4 Affordable home ownership products include First Homes, Shared Ownership and Rent to Buy. The figures for affordable home ownership represent the highest possible requirement. The HENA analysis states that the needs for affordable home ownership do not include any reduction due to the availability of market-based initiatives to make homes affordable such as the Help-to-Buy Equity Loan scheme which evidence shows has in the past comprised a significant proportion of new-build delivery. This would significantly reduce the estimated need for affordable home ownership products and therefore point Councils to focus on meeting rented needs where possible. The HENA states that individual local authorities may look to discount a proportion of the identified Affordable Home Ownership numbers to reflect these scenarios.
21.5 The Council's approach to meeting the need for affordable housing will be informed by viability evidence for the whole plan and is unlikely to be as high as the need identified by HENA.
Affordable Housing