A long-standing aim of the RHG is to increase the delivery of new retirement housing schemes and to address the barriers that those who want to develop this form of housing often experience. A key recommendation we make to national and local government is to address the long-term issue of viability and the impact of the Community Infrastructure Levy, Planning Obligations and Affordable Housing obligations on limiting the delivery of specialist housing for older people.
This form of housing is rarely assessed on its own rights and is often required to pay the same levels of contributions as mainstream housing, which has a different viability model, and which prevents many new retirement housing sites from coming forward. Moreover, developers seeking to secure good quality, centrally located sites for specialist housing for older people are unable to operate on a level playing field when facing competing interest from non-residential users, because affordable housing policies do not apply to non-residential uses and often CIL charges are significantly lower for non-residential developments.
Our recommendation was supported by the Government’s Older Peoples’ Housing Taskforce, which noted that this form of housing also delivers wider societal benefits by reducing burdens on health and social care services and as such, guidance to local authorities should include a planning policy presumption in favour of specialist retirement housing and careful consideration given to whether affordable housing policies and CIL charges should therefore be applied to such developments.
However, despite the growing need for better housing and care options for older people, there are only a handful of Local Plans adopted which fully address this issue of viability for retirement housing.
Local authorities in Swale and Fareham have a full exemption and there are a few emerging policies now promoting exemptions which the RHG has helped to achieve. Key extracts from their emerging policies are noted below.
The RHG continues to make the case to other local authorities, and you can also read more about our approach to viability in our ‘Planning for Retirement’ report.
Key extracts from their emerging policies
- Birmingham, which notes: “Due to the specific viability challenges of delivering older persons’ housing, the evidence suggests based on the market research, viability assessment appraisal inputs and policy requirements, Older Person’s Housing is exempted from Affordable Housing provision.”
- Charnwood, which notes: “Our viability evidence shows that neither sheltered housing nor extra care housing developments are likely to be viable if a contribution towards affordable housing is sought.”
- Leicestershire are also towards the latter stages of their Local Plan examination and have recently consulted on main modifications that exempt specialist housing for older people from affordable housing, as well as removing the requirement for M4(3).
- Dudley, which notes: “All developments of ten homes or more should provide a proportion of affordable housing, where this is financially viable (excluding older persons’ homes for retirement living/sheltered housing and extra-care as defined in the PPG).”
- There are also some authorities which have set a lower affordable housing requirement for older persons’ housing that, whilst not ideal as it doesn’t overcome then level playing field point mentioned above, is nonetheless helpful as it sets the policy compliant level at a lower starting point at the planning application stage. An example is Maidstone Borough Council, which has recently adopted a plan that has a lower affordable housing requirement for class C3 retirement housing and exempts housing that falls into the C2 Use Class from delivering any affordable housing.
