The presumption is that provision of Affordable Housing is to be made on site. Alternatives to on-site provision will only be agreed exceptionally and where off-site alternatives are considered to be the best way to achieve the delivery of more affordable units.
All other types of provision must be actively considered by the developer and discounted by the council before a commuted sum is accepted. The alternatives to on-site provision are set out in priority order below:
| Type of Provision | Notes | |
| 1 | Provision of affordable units on an alternative site (‘donor site’) | A parallel planning application should be submitted for the development of the donor site and the implementation of any approved scheme on the main site would need to be linked through a s106 agreement to an approved development on the donor site. |
| 2 | Purchase of land for a RP or the Council within the same settlement | Suitable land within the same settlement or place as the application site will be transferred at no cost to a RP or any development company formed by the council, who will then finance and build the required affordable homes on that land. The location should be agreed with the appointed Housing Officer. |
| 3 | Purchase of existing housing units within the Borough | The developer will purchase the required number of units on the open market and sell them to a RP or council at a 30%-40% discount. The location, quality, cost, size and design of the units must be agreed with the RP and the council’s Housing Officer to ensure units meet the prevailing need and are of an appropriate standard. |
| 4 | Purchase of land for a RP or the Council elsewhere in the Borough | Suitable land elsewhere in the borough will be transferred at no cost to a RP or any development company formed by the council, who will then finance and build the required affordable homes on that land. The location should be agreed with the appointed Housing Officer. |
| 5 | Commuted sum for Affordable Housing | This will be accepted on sites of four units or less. On larger sites it will only ever be accepted after the alternatives above have been actively considered by the developer and discounted by the council. |
Financial contributions are considered an inefficient and resource-intensive method of providing Affordable Housing and the provision of Affordable Housing by way of a financial contribution will only be accepted in exceptional circumstances. Further detailed guidance is set out in the Affordable Housing SPD including a section on commuted sums in Appendix D.
