In England, there is no single affordable-housing percentage that applies to every residential scheme. The starting point is the development plan for the site: its evidence and policies establish the applicable proportion, tenure mix and expectations for delivery. The authority then considers whether the proposal meets those requirements, whether affordable homes will be provided on site, and—only where justified—whether a viability appraisal supports a different outcome.
What sets the affordable-housing requirement?
National planning policy supplies a framework, not a universal quota for every site. The relevant local development plan translates housing need into requirements for the area or site. Those policies may specify a proportion of a scheme to be affordable, a mix of tenures, and a minimum Social Rent share. The applicable plan wording, rather than a figure borrowed from another authority or project, is the starting point for assessing a proposal.
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Plan-makers are expected to use evidence about housing need, including the needs of people who require affordable housing and Social Rent. Government guidance distinguishes the assessment of need from the housing requirement in a plan: need is assessed without limiting it to what can be delivered, while the plan’s housing requirement reflects what it seeks to provide after delivery considerations. The resulting policy should make clear what affordable housing types and mix are sought.
The national framework also expects local policies to be informed by proportionate viability assessment. Plan-makers should consider the cumulative cost of relevant policies and set requirements at a level intended to make planned development deliverable. That plan-level work matters later: a policy-compliant proposal is generally assumed viable, rather than being invited to reopen the policy requirement automatically at application stage.
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Why neighbouring schemes can have different requirements
Two residential proposals in the same broad region may face different requirements because they fall under different development plans, area policies, site circumstances or policy evidence. Even where a percentage happens to match, the required mix may not: the local policy may seek a particular balance of affordable tenures or a minimum proportion of Social Rent. Comparisons should therefore identify the policies that actually apply to each site, their evidence base and the tenure requirements—not just compare headline percentages.
How an authority assesses a planning proposal
The assessment is a sequence: establish the applicable policy, compare the scheme with its affordable-housing requirement, examine the proposed delivery arrangement, and consider any properly justified viability case. The authority’s decision is site-specific; national policy alone cannot establish a particular project’s required share or tenure mix.
- Identify the governing plan policy. Check the adopted development-plan policies relevant to the site and proposal, including any location-specific requirements. Establish the required proportion, tenure mix and Social Rent element, and read the policy’s scope and wording rather than assuming a standard threshold.
- Assess the scheme against that requirement. The authority considers whether the proposal meets or exceeds the current plan requirement and whether the proposed affordable tenures match the policy. A total number or percentage alone may not show compliance if the mix is also specified.
- Consider the proposed delivery location. On-site provision is the national policy expectation. Where an applicant proposes an alternative site or a payment instead of homes on the application site, the authority considers whether that departure is robustly justified and whether the agreed approach will support mixed and balanced communities.
- Decide whether a viability assessment is warranted. A scheme that accords with relevant up-to-date policies is assumed viable. The applicant must demonstrate whether particular circumstances justify an application-stage assessment; the authority decides what weight to give it.
- Examine any appraisal and its evidence. If a viability case is considered, the authority can assess its inputs, assumptions, transparency and relevance to the site, including whether circumstances differ materially from those tested when the plan was prepared.
What counts as affordable housing?
The current National Planning Policy Framework glossary defines affordable housing as housing for sale or rent for people whose needs are not met by the market. It also includes subsidised routes to home ownership and provision for essential local workers or national military housing needs, provided the relevant glossary category definition is met. The label is therefore not enough by itself: a proposed tenure must satisfy the applicable category’s conditions.
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1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitchesThe glossary includes Social Rent and other affordable rent categories, each with conditions concerning rent, the provider and the continued affordability of the housing or recycling of subsidy. These categories should not be treated as interchangeable. An authority assesses the mix sought by its local policy and whether the proposed homes meet the relevant definitions; a scheme cannot assume that any unit described as “affordable” will satisfy a policy seeking a particular tenure.
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For a site-specific assessment, use the current glossary wording and the relevant local policy together. The national definition describes the available categories, while the development plan determines what mix is expected in that location. Avoid relying on older policy language or importing a tenure mix from a different plan area.
When can an application-stage viability assessment matter?
Viability is an exception to the normal expectation that a proposal meeting up-to-date plan policies can deliver those policies. An applicant seeking a departure has to demonstrate why particular circumstances justify an assessment. National decision-making policy identifies materially different development types or materially different site characteristics from those tested for the plan as relevant circumstances. A general assertion that affordable housing affects returns is not, on its own, the demonstration the framework calls for.
The authority decides the weight to give the appraisal. Relevant context includes how old the plan is, the viability evidence supporting it, and whether circumstances on the site have changed. The question is not simply whether an appraisal produces a lower contribution than the policy expectation; it is whether the evidence is credible and the circumstances justify relying on it in the decision on this application.
That distinction protects the plan-making process. Plan policies are intended to account for the cumulative cost of relevant requirements and to be set at a deliverable level. If every policy-compliant project could routinely reduce its contribution by submitting a fresh appraisal, the planned requirement would cease to function as the normal starting point. The national framework instead puts the burden on the applicant to explain why the case is exceptional and leaves the decision-maker to assess the evidence.
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What a viability appraisal examines
Government viability guidance describes viability as comparing the value generated by a development with the cost of developing it. In practical terms, the authority examines the appraisal as a connected set of assumptions, not as a single conclusion about whether a scheme is viable.
- Gross development value: the value attributed to the completed development. The authority considers whether the evidence and assumptions used to arrive at that value are appropriate and available.
- Development costs: the costs included in delivering the scheme. Their support and relevance to the proposal affect how much weight the authority can give the appraisal.
- Land value and landowner premium: the value assigned to the land and the premium assumed for the landowner. These are explicit elements of the assessment and can materially affect the claimed capacity to meet policy requirements.
- Developer return: the return assumed for the developer. It is considered alongside the other inputs rather than treated as a stand-alone reason to reduce affordable provision.
The guidance calls for national standardised inputs and appropriate available evidence. Assessments should be proportionate, simple, transparent and publicly available. This enables the authority and interested parties to understand how the conclusion follows from the underlying assumptions instead of having to accept an unexplained bottom-line figure.
Authorities may consider appointing a suitable practitioner to review an applicant’s assessment. Where the authority considers it appropriate, the applicant pays for that review. Engagement can involve developers, landowners, infrastructure providers and affordable-housing providers; these participants can help test evidence relevant to values, costs and delivery. The existence of a review does not, by itself, decide the policy outcome—the authority still weighs the appraisal and the circumstances of the case.
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Questions that help test an appraisal
- Does the appraisal use evidence appropriate to this scheme and site, and are its assumptions visible?
- Are gross development value, costs, land value, landowner premium and developer return all addressed?
- Does the appraisal explain how each material input affects the amount of affordable housing the proposal can provide?
- Are the development type and site characteristics materially different from those tested in the plan’s viability evidence?
- Does the case account for the plan’s age, its supporting evidence and changed site circumstances?
- Can the appraisal be understood and scrutinised using proportionate, standardised inputs and publicly available information?
These checks do not prescribe an outcome or substitute for the authority’s judgement. They help distinguish a transparent, evidence-based case from a bare assertion that the policy requirement cannot be met.
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Why on-site affordable housing is the expectation
National policy expects affordable homes to be provided on the development site. On-site delivery places affordable housing within the scheme rather than separating it from the new residential development. An alternative arrangement—homes on a nearby site or a payment in lieu—needs robust justification, and the agreed approach must support mixed and balanced communities.
Accordingly, an authority does not treat off-site provision or a cash payment as an automatic substitute simply because an applicant proposes it. The assessment concerns both the justification for the alternative and whether it achieves the policy objective in the circumstances. National policy does not establish one universal formula for accepting such alternatives; the relevant local policy and the evidence for the proposal matter.
How the Green Belt Golden Rules change the assessment
A special rule applies to qualifying major housing development on land within the Green Belt or proposed to be released from it. The current framework calls for an affordable-housing requirement set higher than the requirement for land outside, or not proposed for release from, the Green Belt. It specifies at least 50% affordable housing unless that level would make development unviable when tested under national viability guidance.
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The framework also contains a specialized transitional provision: an interim overall cap of 50% until development-plan affordable-housing policies have been updated in accordance with the framework. Because the Green Belt Golden Rules interact with development-plan wording and transitional arrangements, applicants and authorities need to verify the operative policy language for the application rather than applying the headline threshold in isolation. National guidance says site-specific viability assessment should not be used to reduce developer contributions for development subject to the Golden Rules.
How to compare affordable-housing outcomes between schemes
A useful comparison starts with the reason the outcomes differ, not just the final percentage. The following factors are the ones most likely to explain different assessments:
| Comparison point | What to establish |
|---|---|
| Applicable policy | Which development-plan policy applies to each site, and what evidence and policy date inform it? |
| Required amount and mix | What proportion is required, which tenures are sought, and is a minimum Social Rent share specified? |
| Delivery arrangement | Is provision on site, or is an off-site or payment alternative proposed with robust justification? |
| Site and development circumstances | Are the development type or site characteristics materially different from those tested for the plan? |
| Appraisal assumptions | How are value, costs, land value, landowner premium and developer return evidenced? |
| Evidence quality | Is the assessment proportionate, transparent, based on appropriate evidence and available for scrutiny? |
This framework makes clear why one scheme’s negotiated figure cannot be copied to another. Different policies, evidence dates, tenure expectations, site circumstances or appraisal assumptions can produce different decisions. A comparison that omits those factors may confuse a policy difference with a viability difference.
What a site-specific answer requires
A national overview cannot identify the affordable-housing requirement for an individual site without the local planning authority, site location, adopted development plan, proposal and any relevant viability evidence. To reach a defensible site-specific view, establish the policy first, then test the proposed proportion and tenure mix, delivery location and any claimed reason for departure against the evidence relevant to that site.
The current National Planning Policy Framework version referenced here was published on 29 September 2026; the government viability practice guidance was updated on 16 December 2025. Policy and application materials can change, so a live proposal should be checked against the current framework and the operative local plan. These national dates do not replace the need to identify which adopted policy governs the particular land.
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