The Affordable Housing Policy can be found in a number of council planning documents. To read a summary of requirements, visit affordable housing needs in Bracknell.
We will only consider the relaxation of requirements, in part or in full, for a scheme that is subject to abnormal costs. This does not include the price paid for the land.
An independent assessment of an open book financial appraisal of the development must be carried out before we can agree to a relaxation.
Viability assessments
Viability assessments should be based on the government’s recommended approach. These are set out in the National Planning Guidance.
Viability assessments must investigate various affordable housing options. It is not enough to assume that affordable housing cannot be provided.
We will choose and appoint an independent consultant to review the viability assessment. The cost of the assessment will be funded by the developer.
If the preferred tenure mix is found not to be viable, we will seek alternative affordable housing provision to meet local housing needs.
Section 106 Agreement
The applicant will be expected to enter into a Section 106 legal agreement that will include a late stage review mechanism.
The mechanism will allow the development's viability to be reassessed over its lifetime. It will make sure the greatest benefit to the public is secured over the period of the development.
The agreement would also secure the appointment of an independent assessor, funded by the developer. The assessor will monitor the scheme on an open-book basis against the late-stage review provisions.
Late-stage review mechanism
The mechanism is usually triggered when 75% of units in a scheme are sold or let (or after a period agreed by the local planning authority). This means the review will be based on actual sales values and known build costs.
The review will take place before the whole development is sold. This will make sure that the review and any extra contribution arising from it is enforceable.
The outcome will typically be a financial contribution towards off-site affordable housing provision.
The mechanism is based on changes to the gross development value (GDV) and build costs between planning permission and review. By focusing on these key inputs, the approach avoids the need to undertake a full reassessment of the viability of the scheme.
The estimated GDV and build costs submitted in the original planning application will be compared to final figures. These will be evaluated through an updated scheme valuation and elemental cost plan. The review mechanism determines whether a ‘surplus’ is generated over and above the returns necessary for a scheme to be deemed viable.
The review mechanism uses a formula to compare GDV and build costs at the application stage and review stage. It allows for any surplus profit to be split between the developer and council once the threshold level of viability has been reached. This incentivises the developer to maximise value from a scheme.
For late stage reviews, this will be split 60/40 between the council and the developer. 60% of surplus profit will be used for additional affordable housing.
The contribution towards affordable housing will be capped. The figure will be equal to the provision of affordable housing on a fully policy compliant basis. This is currently 25% affordable housing with a tenure mix of 70% affordable rent and 30% intermediate housing.
A second formula is used to determine the price ‘cap’ on any affordable housing contribution.