NOTE: this is a longer read, and looks at reasons for developers excusing themselves from building affordable homes with plans by the council to relax rules.
West Berkshire Council is exploring ways to boost affordable housing as it aims to build around 1,000 homes by 2030. Developers, however, have been facing difficulties delivering on social housing commitments due to viability assessments. These assessments allow developers to claim that building affordable homes will cut into their profits—defined as around 20%. This legal loophole lets them reduce their affordable housing quotas.
The council warns that without alternative strategies, many development sites could fail to meet affordable housing targets. Builders are struggling to attract registered providers willing to commit to new projects, as these providers are currently focused on updating existing homes to meet new regulatory standards.
A recent example occurred with a David Wilson scheme in Speen, where a lack of sustainable design features led to discrepancies with what registered providers now require. “We hope to bring affordable home ownership opportunities at The Chase,” said a spokesperson for David Wilson Homes. They added that while they have a history of building affordable homes, they faced challenges meeting initial planning commitments at some sites.
Since 2014, developers have faced penalties for not fulfilling social housing obligations, which makes the matter even more pressing. The council is considering using funds from these developers to back social housing schemes led by registered providers.
The Local Plan highlights a necessity for 330 affordable homes annually until 2039. The council maintains that a flexible approach is critical to avoid stalled developments or decreased commitments to affordable housing.
Collaboration across broader local authority boundaries is being looked at to improve housing delivery. While this flexibility may sometimes lead to less-than-ideal outcomes, it’s deemed necessary to increase affordable housing stock.
West Berkshire currently mandates 30% affordable housing on larger developments and up to 40% on greenfield sites. Recent discussions with Newbury MP Lee Dillon include pushing for a review of acceptable developer profits and seeking more engagement from local providers.
As it stands, the council owns 99 homes, including units at Walnut Close, amidst these ongoing challenges in affordable housing delivery.
Niki Hinman, Local Democracy Reporter
