Issue - meetings

The First Homes Policy Review report was presented for Members’ consideration by the Strategic Housing Services Manager.

Cabinet was advised that Government had introduced an affordable housing product known as First Homes to be provided by all local housing authorities from 28th March 2022. This required a minimum of twenty five per cent of affordable housing on Section 106 sites to be First Homes.

An update to the National Planning Policy Framework (NPPF) guidance in 2024 offered an opportunity for this approach to be reviewed. The removal of the mandatory requirement to deliver a minimum of twenty five per cent of affordable housing as First Homes would allow Strategic Housing to flexibly negotiate with developers regarding appropriate affordable housing products on site.

It was noted that this report had been considered by the Overview and Scrutiny Committee the previous evening.

RESOLVED that the Council’s revised First Homes Policy be approved. 

The First Homes Policy Review was presented to Members by the Strategic Housing Services Manager. 

Members were reminded that the Government had introduced the First Homes policy in 2022.  At that time, it had been mandatory for 25% of affordable housing on qualifying Section 106 sites to be delivered as First Homes, however, subsequent changes to the National Planning Policy Framework (NPPF) had removed the mandatory requirement.  The policy had therefore been updated to remove the mandatory wording.  Officers considered that First Homes should remain within the policy as a product that could still be negotiated with developers where appropriate. It was advised that the Council’s preference remained for social rented housing and shared ownership, with shared ownership being the preferred affordable ownership product.

After the presentation, Member discussions were as follows:

• How likely was it that housing developers would agreed to the Council’s stated preference option for shared ownership when developers were considering affordable housing options? - The Strategic Housing Services Manager responded that developers generally did adhere to specific requirements in relation to tenure.
• Clarity on the position set out in the policy whereby a First Home had not sold and the Council expected compensation. – The Board were advised that because First Homes were discounted products, if a property cannot be sold as a First Home, it could be sold on the open market with 30% of the sale value paid to the Council.  A Member suggested that there should be a penalty if the property was lost from the affordable housing stock and that 50% of the sale value be paid back to the Council.  In response the Strategic Housing Services Manager advised that the ruling was stipulated within the First Homes policy and therefore would be difficult to revise.
• In order to help balance the affordable housing stock, what powers the Council had to insist that First Homes were built on small developments? – It was confirmed that affordable housing negotiations would proceed on the basis that the Council expected two-thirds social rented housing and one-third affordable home ownership, with shared ownership preferred.  However, First Homes could still be used where share ownership was not appropriate or viable.
• Clarification was also provided to Members as requested by the Chairman on the local connection criteria.

RESOLVED that the Council’s revised First Homes Policy Review be noted.