The Almshouse Association is concerned by the apparent inconsistency in the affordable housing allocation with local authorities, particularly around Section 106 of the Town and Country Planning Act 1990, which have been highlighted by the debate around the Westferry Printworks development.

It would appear that developers were keen to significantly reduce the percentage of affordable housing in their developments at a time when affordable homes are out of reach for so many.

Our member charities have repeatedly faced difficulties due to Section 106 even though their core function is to provide truly affordable housing. Almhouses should be exempt from Section 106 agreements because of this, yet our members have struggled with officials who misunderstand the remit of the agreements or the work of almshouses.

The Almshouse Association has long recognised that in order to promote more development of affordable housing, barriers to almshouses development need to be removed. Currently many local planning departments do not recognise almshouse charities as “affordable housing providers” as the terms used in the planning guidance PPG, refer to ‘Registered Providers of affordable housing‘. Many almshouse charities, established and run by the local community, are not ‘Registered Providers’, (although they are all registered with the Charity Commission and they provide affordable housing). We would like this guidance amended to refer to “a preference for Not for profit Affordable Housing Providers”.

The Almshouse Association believes that where a local planning provision is made for a Section 106 levy to be applied to commercial developers for affordable housing, it should be complied with. This would lead to greater opportunities for the provision of affordable housing.

Almshouse Association CEO Nick Phillips said:

“The question seems to be about a fair playing field in terms of developers required to contribute to building affordable homes. People talk about the “housing crisis” but the charities we represent report the real challenge is an “affordable housing crisis” and that section 106 is designed to be a way of providing communities with affordable housing. “

The Association welcomes consistency and the support of proper affordable community housing for those in the local community. We look forward to continuing our work with the government and local authorities to increase the national stock of truly affordable, community led housing

What is Section 106 ?
A section 106 agreement is an agreement between a developer and a local planning authority about measures that the developer must take to reduce their impact on the community. A section 106 agreement is designed to make a development possible that would otherwise not be possible, by obtaining concessions and contributions from the developer.  It forms a section of the Town And Country Planning Act 1990.

Posted 29 Jun 2020