Out-Law News

DCLG reports 33% fall in affordable home provision

The provision of affordable homes under planning obligations negotiated between landowners, developers and local planning authorities has fallen by nearly one third compared to 2007-8, according to a study commissioned by the Department for Communities and Local Government (DCLG).

A report (84-page / 1.2MB PDF) on the study estimated that 32,000 affordable homes were agreed in 2011-12, compared to 48,000 in 2007-8. Provision of affordable housing was found to be increasingly concentrated in London, which accounted for more than half of agreed units compared to 30% in 2007-8.

The report said the reduction in affordable housing provision was linked to an overall fall in construction activity since 2007-8. It said that the number of section 106 agreements per local authority had dropped by around one third. The total value of section 106 agreements was estimated at £3.7 billion compared with £4.9bn in 2007-8 and £4bn in 2005-6, according to the report.

Despite the falls in values and activity, the report predicted a potential rise in infrastructure funding over the coming years with the gradual introduction of the community infrastructure levy alongside section 106 agreements.

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