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In England, affordable housing in a mixed-use regeneration development means homes that meet a defined planning-policy tenure test for people whose needs are not met by the market. It does not mean every home below the usual market price, nor does it refer to the shops, workspaces, leisure venues or community facilities in the scheme. The required number, tenure mix and delivery route depend on the site’s up-to-date local plan and planning decision.
This article explains the England framework. Scotland, Wales and Northern Ireland have distinct planning frameworks, so the definitions and policy routes described here should not be applied automatically outside England. Even within England, the label “affordable” does not tell you the actual rent or purchase cost: check the tenure, eligibility rules and scheme documents.
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What counts as affordable housing in England?
The National Planning Policy Framework (NPPF) defines affordable housing as housing for sale or rent for people whose needs are not met by the market, including homes that provide a subsidised route to ownership or meet essential local worker or national military housing needs. A home must also satisfy one or more of the NPPF’s specified tenure definitions. The current NPPF glossary was published on 29 September 2026: National Planning Policy Framework.
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That distinction matters in regeneration projects: a rent or sale price that seems low compared with nearby homes does not, on its own, establish that the home qualifies as affordable housing under planning policy. Eligibility, the basis for the discount or rent, the provider and arrangements for preserving affordability for future households can all matter. In short, “affordable” is a policy category, not a guarantee that a home will feel affordable to every household or suit every income.
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The relevant definition also considers whether affordability lasts beyond the first occupant. Depending on the category, the home must remain available to future eligible households or the subsidy must be recycled for affordable housing. A first-sale discount without provisions to maintain that discount, for example, is not enough by itself to demonstrate that the home meets the discounted market sales definition.
Tenure categories and their policy tests
| Category | What the policy test covers |
|---|---|
| Social Rent | Rent follows government Social Rent policy. The landlord is a registered provider, and the home remains affordable for future eligible households or the subsidy is recycled for affordable housing. |
| Other affordable housing for rent | Rent follows government Affordable Rent policy or is at least 20% below local market rent, including applicable service charges. The landlord is normally a registered provider, with an exception for Build to Rent. Affordability must be retained for future households or subsidy recycled. Affordable private rent is expected to be the normal provision in Build to Rent. |
| Discounted market sales housing | The home is sold at least 20% below local market value. Eligibility is based on local incomes and house prices, and provisions maintain the discount for future eligible households. |
| Other affordable routes to home ownership | Routes for people unable to buy on the open market include shared ownership, relevant equity loans, other low-cost homes for sale at least 20% below local market value, and rent to buy. Where public grant is used, the home or proceeds should remain available for future affordable provision or be dealt with under the grant agreement. |
| Military affordable housing | A separate category with sub-market military rent set by the Ministry of Defence, and arrangements to retain affordability for eligible service or veteran households or recycle subsidy. |
The 20% figures are tests for particular tenure categories: they are not a universal limit on what a household may pay, and they do not mean that 20% of a development must be affordable. For rental housing, the “at least 20% below” comparison is against local market rent and includes applicable service charges. For sales, it is against local market value. These are different measures and should not be treated as interchangeable.
When comparing options, look at more than the headline discount. Ask what rent or sale price is being compared, how local eligibility is set, who provides or owns the home, whether the affordability is retained for later eligible households, and whether the tenure answers the local plan’s identified needs. A home can meet a national tenure definition yet still need to be considered alongside local policy requirements for the scheme’s overall mix. The relevant tests are set out in Annex B of the NPPF glossary.
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Mixed-use describes the relationship between uses on a site or nearby: for example, homes alongside community, leisure, retail or employment space. Affordable housing describes the terms on which some of the homes are rented or sold and who is eligible to live in them. The two concepts are related in the design and planning of one scheme, but neither defines the other. Affordable housing applies to qualifying homes, not to the project’s shops, workplaces or public facilities.
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National design guidance describes mixed-use development as complementary uses located on a site or close by. It recommends a range of tenures in larger developments, consistent design quality across tenures, layouts that avoid real or perceived barriers, and shared open or play spaces accessible to all residents. The guide defines “tenure neutral” housing as housing “where no group of residents is disadvantaged as a result of the tenure of their homes.” In practice, this points to integration in quality, layout and shared amenity rather than visibly separate standards or access arrangements. It is design guidance, not a replacement for the NPPF’s formal tenure tests. See the government’s National Design Guide.
There is no basis for assuming that every mixed-use scheme must distribute affordable homes among blocks or uses in one prescribed way. For a named development, check the design and planning documents to see how homes and shared spaces are arranged, and whether the layout supports access and quality across tenures.
How much affordable housing must a regeneration scheme provide?
There is no single national percentage or tenure split that applies to every mixed-use regeneration development. The relevant development plan sets the local requirements, informed by local need. It can specify the type and mix of affordable tenures and a minimum proportion of Social Rent in major development. Under the NPPF’s housing policies, proposals should meet or exceed up-to-date development-plan requirements for the location and tenure mix. The national policy does not let a scheme’s “regeneration” label determine its affordable share.
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For a particular site, the share and tenure mix need to be read from the applicable local plan and planning documents. Depending on the scheme and local policy, the relevant details may include the number of homes by tenure, bedroom and accessibility mix, delivery phases, and any agreed planning obligations. Those details cannot be inferred from a headline description of the development. A useful comparison is therefore not simply “how many affordable homes?” but also “which tenures, for whom, and in what mix?” A larger total does not by itself show whether a proposal meets local needs or the policy’s required tenure balance.
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The governing national policies are in the NPPF housing chapter, including policies HO5 and HO8: NPPF housing policies. Check that the plan or policy cited is up to date and applies to the location; do not borrow a percentage from another town or scheme and assume it governs this one.
Where are the affordable homes delivered?
On-site provision is the general policy expectation. An alternative is not an automatic developer choice: it must meet the policy conditions and be justified in the context of the proposal. The point is to deliver affordable homes in a way that supports mixed and balanced communities, rather than treating a cash payment or a separate site as an unconditional substitute.
- On site: The usual route is to include the affordable homes within the development.
- Off site: Provision on a nearby alternative site may be considered where it would optimise the quality or quantity of homes.
- Payment in lieu: A cash contribution may be considered where robustly justified and where it contributes to the objective of mixed and balanced communities.
The applicable local plan and planning decision determine how these routes are treated for a particular scheme. If a proposal uses an alternative, check the justification and the planning obligation that secures it. A payment or off-site contribution should therefore be described as a policy-conditioned alternative, not as a general substitute for building affordable homes on the regeneration site.
How replacement homes and new affordable homes fit into regeneration
Regeneration can involve replacing existing affordable homes as well as adding new ones. It is important to distinguish the replacement component from net additional affordable housing: replacing homes does not, by itself, establish that a scheme is adding to the affordable stock. Homes England’s Affordable Homes Programme guidance describes funding for replacement affordable homes when delivered alongside net additional affordable housing. The programme conditions include unlocking additional homes, meeting delivery dates and certainty requirements, minimising grant per home, and aligning with the relevant housing authority’s priorities.
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Homes England’s guidance, updated on 17 February 2026, states that the programme has £9.23 billion of government funding to deliver at least 100,000 affordable homes outside London by the end of March 2029. These are programme-wide funding and target figures—not the funding allocation for an individual regeneration project or a count of homes already completed. They are useful context for the funding programme, not evidence that a particular site has received grant or will deliver a specified number. Programme details and dates can change; see the Affordable Homes Programme guidance.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Does viability change what counts as affordable housing?
No. Viability is a consideration about whether development and policy requirements can be delivered; it does not replace the NPPF’s tenure definitions. Planning guidance says viability assessment primarily belongs at plan-making stage, where affordable-housing and infrastructure requirements should reflect need while allowing planned site and development types to be deliverable. Local authorities should use evidence and policy requirements.
For an individual application, an asserted viability issue needs scheme-specific evidence and a review against current local policy. The fact that a project is a regeneration development does not itself waive the affordable-housing requirement. When a viability case is raised, the relevant question is what evidence supports it for this development and how the proposal responds to the plan’s requirements—not whether “regeneration” is a blanket exemption. The relevant guidance is the government’s Planning Practice Guidance on viability.
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A project description or marketing label cannot establish the actual affordable offer. To understand a specific scheme, check the documents that set out its planning obligations and approved housing schedule. In particular, verify the relevant local plan, section 106 agreement, planning decision, tenure schedule and any viability material before stating a share, tenure mix, unit count, delivery phase or affordability level.
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- Local plan: The current policy for the site, including the required affordable share, tenure mix and any Social Rent minimum.
- Planning decision and section 106 agreement: The obligations governing provision, tenure, eligibility, timing and any permitted alternative delivery route.
- Tenure schedule: The number and type of affordable homes, their rents or sale basis, and any applicable bedroom or accessibility requirements.
- Affordability arrangements: How eligibility is determined and how affordability is preserved for future households or subsidy recycled, where required.
- Viability material: The scheme-specific evidence supporting any proposed departure from the plan’s requirements.
- Design documents: How the different homes, entrances, layouts and shared spaces are designed, including whether common open or play spaces are accessible to all residents.
These checks distinguish a policy-compliant affordable home from a home that is merely described as affordable in general conversation. They also help separate a policy requirement from an agreed delivery arrangement or a funding-programme condition.
Frequently Asked Questions
Does affordable housing mean housing that is affordable to everyone?
No. In England it is a planning-policy category for housing that meets specified tenure tests for people whose needs are not met by the market. The label alone does not tell you a household’s rent, purchase cost or eligibility; those depend on the tenure and scheme arrangements.
Does the 20% discount mean that 20% of a regeneration scheme must be affordable?
No. The 20% tests apply to particular tenure routes: for example, certain rental homes must be at least 20% below local market rent, including applicable service charges, and specified sales routes must be at least 20% below local market value. The required affordable share of a development is a separate local-policy question.
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On-site provision is the general expectation. Off-site delivery on a nearby alternative site may be considered if it would optimise the quality or quantity of homes. A payment in lieu needs robust justification and must contribute to mixed and balanced communities; neither route is an automatic choice.
Does regeneration automatically reduce the affordable-housing requirement?
No. The scheme’s regeneration label does not waive policy. Viability issues for a specific application need scheme-specific evidence and review against current local policy.
How can I check the affordable-housing offer for a particular scheme?
Review the applicable local plan, planning decision, section 106 agreement and tenure schedule, along with any viability material. These documents can establish the share, tenure mix, eligibility, affordability terms, delivery timing and any permitted alternative route.
The Bottom Line
In England, affordable housing in a mixed-use regeneration development means homes that satisfy an NPPF tenure definition—not simply homes marketed below the usual price. The local plan determines the required share and tenure mix, with on-site delivery the general expectation and alternatives allowed only under policy conditions. For a named project, check its planning obligations, tenure schedule and any viability evidence before relying on headline claims.
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