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Ministers drop plans to relax affordable housing rules for developers

The government has reversed proposals to relax affordable housing quotas for developers in England following significant opposition from housing experts and a public consultation.

  • The government will not proceed with plans to end affordable housing quotas for private builders on sites with 10 to 49 houses.
  • Housing experts had warned the original proposals could reduce the number of cheaper homes, particularly in rural areas.
  • A consultation on the proposals received an overwhelmingly negative response, with 41% strongly opposed.

Ministers have abandoned plans to relax affordable housing rules for developers in England. The government announced on Monday that it would not proceed with proposals to remove affordable housing quotas for private builders on sites developing between 10 and 49 houses.

This decision follows a backlash from housing experts who cautioned that the original plans could significantly reduce the availability of cheaper homes, especially in rural areas. A public consultation on the proposals generated an overwhelmingly negative response, with 41% of respondents strongly opposing the measure.

The National Housing Federation (NHF) had highlighted that in England's most rural areas, over half of all affordable homes are built on developments of this size. The NHF warned that the policy change could have resulted in a loss of 32,000 affordable homes over the next decade.

Housing Secretary Angela Rayner stated on Monday that the government needs more homes, noting nearly 400,000 new homes have been completed since they took office and a 15% increase in housing starts. She added that new rules have been set out to expedite planning and ensure infrastructure accompanies new housing.

Why this matters: The decision safeguards a key method for delivering social homes in rural areas, where a significant proportion of affordable housing is built on medium-sized developments.

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