Affordable Housing

Lord Shipley Excerpts

Monday 7th March 2016 Lords Chamber

Asked by

[Lord Shipley]

To ask Her Majesty’s Government what is their definition of affordable housing.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Williams of Trafford) (Con)]

My Lords, our definition of affordable housing for planning purposes is set out in annexe 2 to the National Planning Policy Framework. We recently consulted on our proposals for specific changes to national planning policy, including broadening the definition of affordable housing, to expand the range of low-cost housing opportunities for those aspiring to own their new home.

[Lord Shipley (LD)]

My Lords, I thank the Minister for her reply, but can she explain to the House why it is that the Government persist in defining homes, including starter homes, as affordable when they are clearly unaffordable to very large numbers of households on medium and low incomes?

[Baroness Williams of Trafford]

My Lords, affordable homes are 20% below market values, and our new starter homes, as I have recently demonstrated in the Chamber, will cost about £145,000 outside London, so will be well within the affordability range for many first-time buyers, but there is a range of other products for people to purchase, should they wish, such as shared ownership schemes.