New affordable housing plan a ‘massive risk’ (From Bournemouth Echo)

New affordable housing plan a ‘massive risk’

6:30pm Tuesday 24th November 2009 in

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“UNREALISTIC, unworkable and a massive risk” – that’s a former housing chief’s damning verdict on Bournemouth’s attempt to create more affordable homes.

Cllr Peter Charon, Bournemouth’s former cabinet member for housing, has taken the unusual step of ditching his property developer day job so he can oppose a proposed new system of calculating affordable housing contributions.

Under the plans, which were approved by cabinet on Wednesday, anyone seeking to build one or more additional housing units will have to provide a breakdown of their costs and anticipated profit.

If these exceed the council’s limits, the developer will have to build up to 40 per cent affordable housing, either on-site, off-site or by way of financial contribution.

It’s completely different from the current system, which only requires developers to make an affordable housing contribution if they are building 15 or more homes.

Under this policy, 95 per cent of development has not delivered any affordable housing, with many developers choosing to build just 14 units to avoid it.

“The aim, to provide more affordable housing, is laudable, but in my view the proposals are unrealistic and unworkable unless you happen to be a developer that only provides affordable housing and nothing else,” said Cllr Charon.

The policy is officially classed as “medium risk” by the council but Cllr Charon said: “There cannot be the slightest doubt that this policy carries a huge risk and may well have the opposite effect to that intended.”

But Cllr John Beesley, deputy council leader, said: “Our policy to date for delivering affordable housing clearly hasn’t been effective because 95 per cent of development has not delivered any affordable housing contribution.

“That’s a travesty considering we have got over 7,000 households on the waiting list and clearly something needs to change.”

He said the flexibility of the new system meant it should be able to deliver “in all market conditions.”