Issue - decisions

First Homes

15/12/2021 - The Publication of a First Homes Interim Guidance Note

The Executive was informed that changes to the Planning Practice Guidance, which would have effect from 28June 2021, included the introduction of First Homes. First Homes was a specific form of discounted market sale housing that would be available to first time buyers and sold at a minimum discount of 30% below the market value, with a maximum price of £250,000 at the first sale after the discount was applied; the discount would be retained in perpetuity through a restriction on the Land Registry title. The Policy set out that, for planning applications determined after 28 December 2021, at least 25% of all affordable housing units delivered through developer contributions must be First Homes.

 

Members were advised that policies within the new Local Plan would reflect the requirement for First Homes; however as the new Local Plan was not due to be adopted until 2023, it was considered appropriate to publish an Interim Guidance Note. This would make the requirements for First Homes clear to developers and could be in place prior to the requirement for First Homes taking effect for schemes granted permission after 28 December 2021.

 

It was reported that the main implication of the introduction of First Homes was that the delivery of other forms of affordable housing, including affordable home ownership products such as shared ownership, would be impacted. In accordance with Government Guidance, once the 25% of First Homes was accounted for, social rent should be delivered in the same percentage as set out in the Local Plan and the remainder of the affordable housing tenures should be delivered in line with the proportions set out in the Local Plan Policy. Members noted how this would apply in relation to the Council’s adopted affordable housing policy. 

 

RESOLVED that

 

(i)        the update to National Planning Practice Guidance and the introduction of First Homes be noted; 

 

(ii)      the publication of the First Homes Guidance Note, as attached at Annex A to the agenda report, including the local connection criteria for determining eligibility of purchasers be agreed; and

 

(iii)     the potential resource implications of First Homes be noted.