A Flawed Argument on Rural Exception Sites

Meeting Place Communications

The Times reported on a warning by unnamed charities who say rural landowners will benefit at the expense of the poor by reducing the amount of land earmarked for affordable homes.

At the moment, developments on ‘rural exception sites’ can only be built if local people haven’t demonstrated opposition to the plans, if the homes are reserved for local people, and the homes are never resold or rented at market rates.

If proposed changes to the National Planning Policy Framework go ahead local authorities will be given discretion to allow new homes to be built on these sites. As the draft changes state, this could lead to “the delivery of affordable units without grant funding.”

In practice this is likely to lend itself to a net increase in affordable homes being built. Surely given the housing crisis the country finds itself in, this should be welcomed.

The problem is all rural exceptions sites, and all affordable housing , will now be valued at market-20% rather than  the NPV of the social housing rent + construction   costs (without land premium).  rather than market housing only being used here it is viable it would automatically render most exception sites unviable

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