Section 106 - affordable housing contributions

MQT on 2014-12-17
Session date: 
December 17, 2014
Question By: 
Stephen Knight
Liberal Democrats
Asked Of: 
The Mayor


How do you respond to the UK Government's announcement that national planning policy will be changed to exempt developments of 10 homes or fewer, with less than 1,000 square metres of floorspace, from planning obligations imposing contributions towards affordable housing? Please outline the impact you expect this decision to have on the provision of affordable homes across London?


Answer for Section 106 - affordable housing contributions

Answer for Section 106 - affordable housing contributions

Answered By: 
The Mayor

I am supportive of measures to boost housing delivery on small scale sites, particularly incentives to encourage custom build and small and medium sized house builders to play a greater role in London. Increasing output on these sites will help accelerate housing delivery to meet the capital's growing housing need.

Whilst I will closely monitor the impact of these changes, evidence suggests that such proposals are unlikely to have a significant negative impact on affordable housing provision. Developments of 10 units and less provide around a quarter of London's housing completions, but these sites do not provide significant numbers of affordable homes. Only 5% of affordable units are delivered on sites of this size and much of this provision is by affordable housing providers rather than as a result of mixed tenure development, so this should continue. Across London as a whole and over the long term, financial contributions from these sites have been modest.