Welsh Government to produce 'detailed guidance' on section 106 for affordable housing

The Government has proposed a programme of legislative and non-legislative actions in a bid to tackle the housing crisis in its white paper 'Homes for Wales, A White Paper for Better Lives and Communities'.

The Welsh Government acknowledged in the White Paper (82-pages / 3.7MB PDF) that the negotiation of section 106 agreements have proved to be more challenging in the current economic conditions.

"Local authorities have been able to continue to use this approach to increase the supply of affordable housing...however, there are inconsistencies in approach that can act as a barrier," the White Paper said.

The Welsh Government said it would work with the Welsh Local Government Association to provide "updated guidance" for local planning authorities to "effectively" secure affordable housing via section 106 agreements.

Affordable housing must be "accessible and fundable" for households and respond to the needs of the local population, the Welsh Government said

The Welsh Government announced last week that it had increased its affordable homes target to 7,500 for this term of government, which runs until 2016. This represented an increase of 1,000 homes on the previous target and will be delivered with a combination of subsidy from the Welsh Government and other housing providers using their own finance, the Welsh Government said

"We will work to ensure that the Planning Bill reflects the need for the planning system to generate more positive outcomes in terms of new homes," the White Paper said. The Welsh Government also plans to ask each local authority to identify a 'champion' for housing.

"Ensuring everyone has a home that is both in good condition and affordable is a fundamental part of a fair and supportive society. This is the message from the Minister for Housing Regeneration and Heritage, Huw Lewis, as he officially launches his Housing White Paper," the White Paper said.

Further guidance is planned on section 106 planning agreements for affordable housing supply between April and September, the Paper said.

Consultations on the White Paper will be open for comments until 17 August.