Ministers should abandon plans to cut social housing quotas in new developments to give discounts on homes for market sale in the wake of the coronavirus pandemic, Hackney Council has told the Government.
Under the Government’s ‘First Homes’ proposals, first-time buyers would get a 30% discount on certain new homes in their area – funded through the affordable housing contributions developers are required to make when applying for planning permission.
According to Hackney Council analysis, submitted in its response to the Government’s consultation on the plans, this would come at the expense of paying for genuinely affordable social housing in new developments, which are funded through the same contribution, known as a Section 106 agreement.
A similar ‘Starter Homes’ initiative was announced by the Government in 2015, promising 200,000 new homes with £2.3billion in funding, but was abandoned last year with no homes built.
Read the Mayor’s full letter to the Ministry of Housing, Communities and Local Government.