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Half of affordable new homes in rural England could be at risk if planning rules relaxed, analysis shows

Half of affordable new homes in rural England could be at risk if planning rules relaxed, analysis shows

Summary

The UK government is considering changes to rules that require private housing builders to include affordable homes in new rural developments of 10 to 49 houses. Analysis shows this change could risk half of the affordable housing supply in rural England and reduce the total affordable homes built by 32,000 over 10 years.

Key Facts

  • The government may end the rule that developers must build affordable homes in medium-sized developments (10-49 houses).
  • These rules are called section 106 agreements, which require some homes to be affordable.
  • In rural areas, over half of affordable homes come from developments of this size.
  • Ending these rules could lead to 32,000 fewer affordable homes over the next decade.
  • Affordable housing is important for rural families who often cannot afford market prices.
  • Developers might instead pay money to local councils to build affordable homes elsewhere.
  • Section 106 agreements currently provide about 36% of all affordable homes built in 2024-25.
  • Officials say no final decision has been made, but changes aim to simplify the building process amid concerns about building costs and delays.
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