Purpose

This report seeks approval to use affordable housing commuted sums held by the Council to assist in the delivery of the affordable housing provision at Land South of Brenchley Road.

Decision

RESOLVED - That use of £250,000 of Section 106 affordable housing contributions held by the Council, as a subsidy contribution towards West Kent Housing Association’s acquisition offer for the affordable housing provision on the site at Land South of Brenchley Road Brenchley Road Horsmonden Tonbridge Kent, Planning 22/00296/OUT, be approved.

Reasons for the decision

The use of commuted sums will ensure that the site can deliver the policy compliant affordable housing provision without any reduction in the number of social rented homes. Currently, due to the financial landscape with high interest rates and inflation to housing building costs, Registered Providers are increasingly finding difficulties in delivering new affordable housing. The current Affordable Homes Programme through Homes England, which provides grant funding for affordable housing, cannot be utilised for affordable housing that are obligated through Section 106 Planning agreements.

Alternative options considered

Option 1 - To approve the use of section 106 commuted sums held by the Council to subsidise WKHA acquisition of the 27 affordable housing homes at Land South of Brenchley Road. This supports the Council’s strategic objective of delivering genuinely affordable housing, as the site will increase the social rented housing stock in the parish of Horsmonden, whilst ensuring that households in housing need and on low incomes will be able to afford these homes.

Option 2 – Do nothing and reject the subsidy request. The developer has confirmed that the offer from WKHA alone is not acceptable. They have indicated that without the £250,000 subsidy they will need to seek an alteration to the tenure mix of the affordable housing provision, to a 50:50 split between social rented homes and shared ownership homes, in order to secure an accepted offer for the affordable housing. This change in tenure mix would result in the loss of two social rented four-bedroom houses.