Although councils are required to seek affordable housing in new developments, many developers find ways to reduce, defer, or avoid this obligation altogether. Here are some of the most common tactics:
1. Viability Assessments
Developers can submit a report claiming that delivering the full affordable housing requirement would make the scheme “financially unviable”. These reports often:
- Inflate costs or underestimate revenues
- Use confidential, unaudited assumptions
- Are difficult for councils to challenge unless reviewed independently
In practice, this has become a routine loophole, especially on complex or high-value sites.
2. Commuted Sums Instead of Homes
Rather than building affordable homes on-site, developers may offer a financial payment to the council. These are called commuted sums.
- The council can use this money to fund affordable homes elsewhere — in theory.
- But in reality, off-site delivery is often delayed, uncertain, or never matched to local need.
- It also breaks the principle of mixed communities — with affordable homes quietly pushed out of market-led developments.
3. Salami Slicing
Developers may split large sites into multiple smaller applications, each falling just below the threshold (e.g. 10 homes or 0.5 ha) required to trigger affordable housing contributions.
- On paper: “Just a small scheme.”
- In practice: A large, coordinated development evading obligations through fragmentation.
4. Delaying Detail Until Later Stages
Even when affordable housing is included in outline permission, developers often leave key details — like tenure mix or dwelling type — to be finalised later.
This allows them to:
- Shift units away from social rent
- Prioritise leasehold/shared ownership products
- Reduce quality or mix based on future market shifts