First Homes – Interim Position Statement
4. Impact on other Affordable Housing Tenures
4.1 The requirement is that at least 25% of all affordable homes delivered through planning obligations will be delivered as First Homes, with the balance of the affordable units being delivered as per the relevant former District Council’s local plan requirement.
4.2 Where cash contributions for affordable housing are secured instead of on-site units, a minimum of 25% of these contributions should be used to secure First Homes. A local authority should prioritise securing their policy requirements for social rent once they have secured the 25% First Homes requirement. Where specific developments are exempt from delivering affordable home ownership products under paragraph 64 of the National Planning Policy Framework, they shall also be exempt from the requirement to deliver First Homes.
Local Plan requirements
4.3. The following sets out the impacts of the application of First Homes policy on each of the areas that are not exempt.
Former Wycombe district area
4.4. Wycombe Local Plan 2019 policy DM24, requires a tenure split of 80% affordable rent and 20% intermediate. So a scheme of 100 homes not on a greenfield site or a Class B business use would provide 35 affordable homes. Following implementation of this position statement would produce a tenure mix of:
- First Homes 8.75 units (25%) – leaving a balance of 26.25 affordable homes comprising:
- Affordable Rented units 21 units (80% of 26.25)
- Intermediate – 5.25 units (20% of 26.25)
Former Chiltern district area
4.5. The Chiltern Core Strategy 2011 policy CS8 requires at least 40% affordable on a site of more than 15 dwellings and Policy CS10 identifies a tenure split of 70% social rented and 30% shared ownership. So, an example of 30 homes would mean 12 homes are to be affordable and therefore following implementation of this position statement:
- First Homes – 3 units - 25% of 12 leaving 9 affordable homes comprising:
- Affordable Rented units – 6.3 units (70% of 9)
- Intermediate – 2.7 units (30% of 9)
Former South Bucks district area
4.6. South Bucks Core Strategy (2011) Core Policy 3 requires at least 40% of 5 dwellings or above to be affordable with a tenure split of 2/3 social rented and 1/3 intermediate. So for an example a scheme of 20 homes would mean 8 affordable homes and following implementation of this position statement:
- First Homes - 2 units (25%) leaving a balance of 6 affordable homes comprising:
- Affordable Rent – 4 units (2/3 of 6)
- Intermediate - 2 units ( 1/3 of 6)
4.7 The impact of the application of First Homes would be to reduce the amount of affordable rented and intermediate housing that would be delivered by approximately 25%. The inclusion of First Homes will not only reduce the amount of affordable rented homes being delivered but may also affect the viability of the inclusion of any social rented homes. This is largely because of the requirement for First Homes to be part of the affordable housing mix there will be a reduced number of shared ownership homes which tend to generate the higher level of income to the developer.
4.8 In terms of rounding, where the provision of First Homes results in figures below 0.5 of a unit this should be rounded down but where the figure is 0.5 or above this should be rounded up. The rounding of the remainder of affordable housing secured should be in line with the relevant local plan policy or Supplementary Planning Document in force for that part of Buckinghamshire.
4.9 The size of the units (1 bed/2-bed/3 bed etc.) to be secured and accessibility standards that apply to First Homes are the same standards as those for housing or affordable housing in the relevant local plan (or made neighbourhood plan) policy in force in Buckinghamshire.
The definition of what is ‘affordable housing’ is as per each Local Plan in force in the relevant area of Buckinghamshire. Therefore how forms of sheltered housing are addressed and if they are ‘affordable housing’ will be as set out in each relevant local plan (or made neighbourhood plan).