Ruling boost for Shropshire affordable housing developments

In a “landmark” judgement by Mr Justice Holdgate on 31 July 2015, West Berkshire District Council and Reading Borough Council successfully challenged through Judicial Review in the High Court, the Minister of State for Housing and Planning’s Written Ministerial Statement (WMS).

The WMS, introduced on 28 November 2014, sought to end a council’s ability to seek affordable housing and/or affordable housing contributions as a planning obligation on sites of 10 or less homes (or five homes and less in designated rural areas).

The WMS and changes made to the National Planning Policy Guidance were declared to be unlawful, and as a result have already been withdrawn.

Shropshire Council had been extremely concerned at the effects the WMS would have on delivering affordable housing in the county. Therefore, it provided a detailed evidenced response of the impacts to the original consultation exercise in March 2014, as well as providing a subsequent evidenced formal witness statement in support of this Judicial Review and which was referenced to in the judgement.

The council also formally considered these implications and resolved, on 21 January 2015, to continue to give full weight to its locally adopted policy (CS11) that requires that “… all new open market development makes an appropriate contribution to affordable housing…”.

This was a clear, consistent message that maintained a robust, evidenced and reasoned local approach that sought to remove, as much as possible, uncertainty for local developers pending this judgement or a local appeal decision that fully evaluated the relative material considerations of the council’s locally adopted position and the WMS.

Mal Price, Shropshire Council’s Cabinet member for regulatory services, said:

“It is important to note that affordable housing can only be provided with subsidy of some kind, and there is an acute need for affordable housing in Shropshire. There are nearly 8,000 households seeking local affordable housing on the council’s housing waiting list. It has house price to household income ratios of 13:1 in some areas, and over 80% of Shropshire’s earning households could not afford to buy a local level entry/starter home (two bed terrace), and yet individual building plots still command over £200,000 in some areas.

“We cannot build enough local affordable housing to meet the demand.

“This has been a very challenging time for the council, councillors, officers and the development industry locally. We have had to contend with many overwhelmingly unsuccessful planning appeal challenges against a number of our decisions. These have contributed uncertainty and hesitation into a fragile local development industry.

“This ruling, though no doubt subject to challenge by the Government, is a huge boost for the delivery of affordable housing locally, for the sustainability of Shropshire’s communities, and for housebuilding in general by helping to remove uncertainty for developers on whether or not an affordable housing contribution is appropriate in Shropshire – it is.

“However, policy, like the council, does not stand still and we are always very keen to hear of any amendments or suggestions from residents and local businesses on how these housing policies and housing initiatives can be refined or improved for the future.”