Recent analysis suggests that a legal loophole is enabling developers to avoid building affordable homes in rural areas.
According to a report based on eight rural councils over the course of a year, the use of viability assessments by developers meant that half of the affordable homes required were not built, as profits could fall below 20%.
The result is having a significant impact on rural landscapes, a concern expressed by the Campaign to Protect Rural England (CRPE) and Shelter, who put together the report.
Within the document, it’s also suggested that after overpaying to purchase the land, developers reduce their commitment to the construction of more affordable housing, enabling them to recoup lost money.
In the wake of the report’s publication, both Shelter and CRPE are urging the government to look at ways to prevent developers from using this loophole as part of their ongoing review of planning rules.
Commenting on the analysis was Polly Neate. The chief executive of Shelter stated: ‘With this new research, we can see for the first time the true scale of our housing crisis and it’s not just blighting cities but our towns and villages too. Developers are using this legal loophole to overpower local communities and are refusing to build the affordable homes they need.
‘The Government should use their current review of planning laws to close this loophole and give local communities the homes they really need. This process must act as a critical turning point in the government’s attitude towards affordable housing in this country.’
Also sharing his view on the research was Crispin Truman. The Chief executive at CPRE stated: It cannot be ignored any longer. Too much of our countryside is eaten up for developments that boost profits, but don’t meet local housing needs because of the viability loophole.
‘CPRE is calling for urgent action from the Government to close the loophole to increase the delivery of affordable housing, otherwise rural communities risk losing the young families and workers which they need to be sustainable.’
