Protocol for funding affordable housing
The amount of money that developers should pay towards off-site affordable homes in Northumberland is to be set out in a new document.
The draft protocol which will determine and secure off-site affordable housing contributions goes before the county council’s cabinet next Tuesday.
While the main objective of the council is to deliver affordable homes on-site as part of new developments, it may not be possible in all cases.
Where it is not possible, the draft protocol suggests that the amount payable per affordable unit which would have been delivered (15 per cent of any development) would be based on how much the homes being sold are worth on the open market.
Sign up to our daily newsletter
The i newsletter cut through the noise
Nothing would be payable on properties worth less than £120,000, then £7,500 per affordable unit between £121,000 and £150,000, and the payment increases by £7,500 as the value rises by £50,000.
For example, if six affordable houses would have been delivered on site and the homes being sold are worth between £201,000 and £250,000, then £22,500 is owed per home – a total of £135,000.