Successful places with homes and jobs A NATIONAL AGENCY WORKING LOCALLY Securing Rural Affordable Housing in Perpetuity RTPI East of England Becky Ashley 24 th February 2015
Legislative Interventions to Secure Affordable Housing in Rural Areas Tenants: Legislation restricts Right to Buy for council tenant and Right to Acquire for Registered Provider affordable and social housing tenants in rural areas. Shared Owners: Legislation enables the inclusion in leases of clauses to restrict shared owners right to enfranchise (acquire the freehold interest) in rural areas. Communities: Community Right to Build.
Relevant Legislation S157 Housing Act 1985 Right to Buy Statutory Instruments 1997 Nos. 620-625 the Housing (Right to Acquire or Enfranchise) Statutory Instrument 1999 - The Housing (Right to Acquire or Enfranchise) (Designated Rural Areas) Order 1999 Statutory Instrument 2009 No. 2098 Housing, England The Housing (Right to Enfranchise) (Designated Protected Areas) (England) Order 2009 Statutory Instrument 2009 The Housing (Shared Ownership Leases) (Exclusion from Leasehold Reform Act 1967) (England) Regulations 2009 Localism Act 2011. Community Right to Build.
Policy Hierarchy Housing Act Statutory Instrument PPS Guidance a material planning consideration in the formulation of local policy. Planning Obligations can be made by agreement or unilaterally by s106. Can be modified or discharged after 5 years.
Exception Site Definition A site on the on the edge of (or well situated in relation to) the defined development boundary of the settlement but which may not have been allocated for housing development in the Local Development Framework True rural exception sites are within areas designated as rural by Legislation. Local Authority s cannot designate their own rural areas but can identify areas where special circumstances prevail such as perpetuity but they cannot restrict enfranchisement. Exception site policy designates sites for affordable housing in perpetuity.
S157 Housing Act 1985 Defines rural areas for the purposes of Right to Buy Enables landlords to impose a restrictive covenant: Sales only to those with a local connection, or If re-selling within 10 years of exercising Right to Buy then must sell back to the landlord. Preserved Right to Buy can be exercised in defined areas however. Referenced as the definition of rural for the purposes of recent PPG changes.
Statutory Instrument 2009 No. 2098 Housing, England The Housing (Right to Enfranchise) (Designated Protected Areas) (England) Order 2009 Enables retention clauses to be included in the leases of shared ownership houses in rural areas, without the landlord running risk of enfranchisement. Two possible mechanisms allowed buyback guarantee, or limit on the maximum share to 80%. Rural designation is the same as for Right to Acquire in 1999 SI. Whole parishes are listed and part parishes are shown on maps. Applies to houses. HCA through grant conditions requires that retention clauses are included in leases for flats and houses in DPA areas. LA can restrict enfranchisement through s106 planning requirement.
DPA Waivers Recognition that enfranchisement restrictions not always warranted. Waivers only relate to HCA funded schemes. Only the LA can apply to the HCA for a waiver Site specific Specific form for the application.
PPG Affordable Housing in Rural Areas PPG Changes November 2014: S106 obligations should not be sought on developments of under 10 units. Exception: Rural areas defined in s157(1) of the Housing Act where a 5 units threshold can be applied and a tarriff contribution accepted for between 5-10 units. The threshold changes do not apply to rural exception sites where obligations can be required. NB. Areas defined in s 157 of the Housing Act are not the same as areas defined for the purposes of DPA and Right to Acquire. There are two separate lists of defined rural areas for the purposes of affordable housing.