Government drops measure to raise affordable housing threshold

April 6, 2021
<p><span>The government has dropped its proposal to raise the site threshold for affordable homes provision.</span></p> <p><span>In an update following its consultation on changes to the current planning system, the Ministry of Housing, Communities and Local Government (MHCLG) stated that the measure, which would have </span><span>temporarily</span><span> </span><span>lifted </span><span>the </span><span>small sites</span><span> threshold for affordable housing provision to 40 or 50 homes, would not be necessary “at this stage”. This was due to the industry’s robustness in the face of the pandemic and “the other measures we have available to support SMEs”. </span></p> <p><span>The measure was proposed to support SMEs during the economic upheavals of the coronavirus crisis.</span></p> <p><span>MHCLG said it would continue to closely monitor the market and speak to SME housebuilders about their challenges and the support that could be given. “But there are no plans to raise the small sites threshold at this stage.” </span></p> <p><span>In current policy, a site of ten homes or more </span><span>is considered a “major development” and </span><span>will be subject to affordable housing provision.</span></p> <p><span>In December, the government decided </span><span>to scrap</span><span> another proposal from the consultation – changes to the standard method for assessing local housing need. MHCLG planned to introduce </span><span>an algorithm that would have …

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