Uncertainty in the market with a number of housing associations being reluctant to commit to new projects!
Example from Northampton
The S106 agreement was completed in June 2015 and planning permission issued. Works on site have subsequently commenced. In the intervening period, as a result of the Government’s announcements in the Budget Summer 2015 to reduce social rents in the four years from 2016- 17 and the intention to extend the Right to Buy to housing association tenants, housing associations are reviewing their existing financial commitments and the plans for the future. This has introduced some uncertainty in the market with a number of housing associations being reluctant to commit to new projects until more detail about the Government’s proposals are available including the conclusion of the Planning and Housing Bill which is currently progressing through Parliament.
As a consequence of this, the developer has not been able to identify an RP willing to operate the affordable housing with the previously agreed tenure mix (i.e. one third being occupied on shared ownership tenures and two thirds being occupied on affordable rented tenures).