Adopted Lewisham Affordable Housing Policy (June 2011)
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Emerging Lewisham Affordable Housing Policy – Regulation 19/22 – January 2023
The current Lewisham Core Strategy was adopted back in June 2011 and it sets out ‘the vision, objectives, strategy and policies that will guide public and private sector investment to manage development and regeneration in the borough’.
Current Affordable Housing Policy
Core Strategy Policy 1 of the current Core Strategy sets out the expectations for Affordable Housing in the area, this can be seen below:
The above identifies that there is a strategic target of 50% affordable housing on residential development of 10+ dwellings, subject to viability.
The requested tenure mix is 70% social rent and 30% intermediate housing. However, if the site is located in an area that has a high concentration of social rented properties, the Council will seek the affordable units in a tenure that will provide a more balanced social mix.
Heads up for the New Lewisham Policy!
The adopted Affordable Housing policy is noticeably simpler to what is proposed in the Regulation 19 document (January 2023):
The proposed policy has a different approach to securing affordable housing in the Borough. There are a number of different scenarios in which the contribution will be sought.
The overall strategic target of 50% affordable housing remains the same, with a fast-track route option that offers a minimum of 35%.
Affordable housing will be required on all developments of C3 housing, unsecured student accommodation and, if appropriate, specialist and supported accommodation. These requirements will apply to all major developments of 10+ dwellings, taking into account:
- New residential units proposed that would result in an uplift in dwellings of the extant permission.
- Development that is proposed on an adjacent site that is functionally related to the extant permission ad would result in an uplift in dwellings across the sites.
For new build housing, including mixed-use schemes, developments of 10+ dwellings must deliver the maximum amount of affordable housing based on habitable rooms, subject to viability.
Lewisham Council will work with development industry partners to help identify opportunities to secure grant funding to deliver more affordable dwellings.
The requested tenure mix is as below:
There will be a threshold approach to viability that is applied to all major developments, this is in line with London Plan Policy H5. In Lewisham, the threshold level of AH on gross residential development is set at:
- A minimum of 35%.
- A minimum of 50% on public sector land.
- A minimum of 50% for Strategic Industrial Locations and Locally Significant Industrial Sites where development would result in a net loss of industrial capacity.
Where viability is tested, this must be in line with the Mayor’s Affordable Housing and Viability SPG or future equivalent. Alongside this, review mechanisms will also be required, where appropriate, in line with this guidance.
Affordable housing is to be provided on-site, and an off-site provision will only be considered in exceptional circumstances where it can be demonstrated that:
- It is not practical or feasible on-site due to development constraints.
- A higher level can be provided on an alternative site.
- Off-site is better to meet priority housing need.
New Small Sites Threshold
Developments that will deliver 2-9 dwellings will also be required to make a contribution towards affordable housing. Preferably it will be on-site; however, off-site contributions can be secured through planning obligations in lieu.
These payments will be calculated in line with table 7.2 and formula 7.3 above.
In most cases, aside from viability, vacant building credit will not be applicable to reduce an affordable housing contribution. There will only be limited scenarios available in which it could be applied:
- Building is not occupied at the time of planning application submission.
- No extant or expired permission on the building.
- Subject site not protected under an alternative use.
- Building not vacated for the purpose of development – the property must be vacant for at least 5 years continuously and marketed for two of these years.
Main Differences
The main changes are summarised below:
We understand that the document has now reached Regulation 22, with modifications still being made in 2025. The adoption of the new Lewisham Local Plan will have considerable affordable housing delivery and viability implications.
If you are hesitant on a scheme of less than 10 units, get your consent in now before the new policy comes into effect!
Otherwise, if you have an existing use value on your site, we can help reduce the contribution through a viability assessment. Get in touch today!
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