| Solution to affordable homes shortage? | |
|  | | The South Hams is a beautiful place to live - but it comes at a high price |
| | South Hams District Council in South Devon wants developers to include 50% affordable housing in their new developments. But developers are against the move. |
| | | A South Devon council has come up with a radical plan to increase the supply of affordable homes in the area.
South Hams District Council wants to force developers to allocate 50% of new projects to affordable homes from May.
The move comes as the council battles to solve the housing crisis facing people in the area, where the average home is now 10 times the average annual salary in South Devon.
 | | South Hams Council |
But developers say it will lead to fewer houses being built because of the lower returns from affordable homes.
Pierre Williams, spokesman for the Housebuilders' Federation, said that developers would be scared away.
He said: "A very large part of the reason why homes are not affordable is that there are simply not enough of them because the local authorities are restricting planning permission for new homes."
But the council's foward planning manager, Lee Bray, rejected the claim. He said the council had done viability work on its plans, which showed they could work.
He said: "We have to do something to enable local people to get their first foot on the housing ladder. We want and we need development.
"Developers will probably not eagerly embrace it, but they understand the need and they want clear guidelines."
*In May 2004, South Hams councillors
agreed new planning guidance, which all developers will have to adhere to.
It means that from now on, half of all homes built in the district will need to be affordable.
The rules also require any low cost housing to be used for meeting local needs - not sold to people moving in from elsewhere.
Article first published: 2nd February 2004
Updated: May 2004
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