Ministers drop plan to relax affordable housing rules after rural homes backlash

British ministers have reversed a plan to ease affordable housing requirements for developers building small to medium-sized sites, following significant opposition from housing experts and the public. The government announced Monday it would not proceed with proposals to end affordable housing quotas for private builders on sites containing between 10 and 49 houses.

The proposed change, part of a broader 150-page planning reform document, aimed to potentially boost housebuilding rates and help meet the government's target of constructing 1.5 million new homes. The Treasury was reportedly keen on allowing developers to make cash payments instead of building affordable homes on-site for these smaller developments.

However, the plan triggered a strong negative response during a public consultation. Of the 910 individuals and groups who responded, 41% were strongly opposed, compared to only 18% in strong support. The government acknowledged "significant opposition across stakeholder groups" and decided against proceeding, citing concerns that the measure could have a "detrimental impact" on manifesto commitments.

Housing experts had warned that relaxing these rules would disproportionately affect rural areas, where a substantial number of affordable homes are built on medium-sized sites. Analysis by the National Housing Federation (NHF) suggested the policy change could lead to a loss of 32,000 affordable homes over the next ten years. Kate Henderson, chief executive of the NHF, welcomed the government's decision, stating it would "safeguard one of the most important routes for delivering social homes in rural areas."

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It’s extremely positive to see that the government has listened to the social housing sector and decided against removing onsite affordable housing requirements on medium-sized development sites. This decision will safeguard one of the most important routes for delivering social homes in rural areas, ensuring we can build genuinely affordable homes where people need them, in every postcode across the country.