Regulation 19 Rutland Local Plan
Rural Exceptions Housing
What will the policy do?
The Policy numbers beginning 'SS' establish the spatial strategy for the County. This allows for larger scale housing development within the towns and larger villages through allocated sites and by small scale infill development. Local housing need, including some of the need for affordable housing in these locations, will generally be delivered through the application of Policy H7 Affordable Housing. However, in the smaller villages and hamlets, housing will primarily be delivered through small scale infill sites and rural exception sites. This policy sets out the circumstances and requirements for the delivery of affordable homes in the smaller villages and hamlets.
Policy H8 - Rural exception housing View comments
1. Small sites for affordable housing (which meets the NPPF definition of affordable housing) may be permitted within, or immediately adjacent to, the Planned Limits of Development of a Larger Village as defined in Policy SS1 or adjacent to existing built form of a Smaller Village as an exception to normal policies of restraint provided that they:
- are justified by evidence of need from a local housing needs survey;
- meet the needs for affordable housing of households who are currently resident, or have a local connection as defined in the Council's published housing allocations policy;
- should have access to a basic range of services and facilities appropriate to the form of housing proposed which can be accessed by foot, cycle or public transport;
- have appropriate safeguards in place to ensure that the housing will remain affordable to successive occupiers in perpetuity; and
- are supported by appropriate nomination agreements to be agreed with the Council.
2. Exceptionally, the Council will consider provision of market housing as a means of cross subsidising affordable housing as part of a rural exception sites where:
- the provision of market housing to cross-subsidise the affordable housing is essential and proportionate; and
- the development meets the identified affordable housing requirement on site and not additional needs from elsewhere; and
- the land value for the affordable homes does not exceed the level that would have normally been paid for a rural exception site (to be confirmed by an independent valuer commissioned by the Council at the applicant's expense); and
- the land value for the market homes is not (adjusting for the size of the plot) 50% or more greater than the level that would normally have been paid for land on a rural exceptions site (to be confirmed by an independent valuer commissioned by the Council at the applicant's expense); and
- the proposal has not and will not receive any public subsidy for its development; and
- the site must be within, or immediately adjacent to, the Planned Limits of Development of a Larger Village as defined in Policy SS1 or adjacent to existing built form of a Smaller Village, and the number of market homes must in no circumstances exceed 30% of the overall homes on the site and that the total internal floor area of the market homes does not exceed the total internal floor area of the affordable housing for rent
- all sites must include affordable housing for rent; and
- the number of market homes must not exceed the number of affordable housing for rent; and
- they are supported by appropriate nomination agreements to be agreed with the Council.
Why is this policy needed?
National policy encourages Local Planning Authorities in rural areas to be responsive to, and plan for, housing development to reflect local needs, including where appropriate rural exceptions sites. In all cases rural exceptions sites should be small in scale and located within or immediately adjacent to villages and will be an exception to normal policies of restraint.
Policy H8 (Rural Exception Housing) also allows for small sites for affordable housing within or immediately adjacent to villages as an exception to normal policies of restraint, provided that they meet certain requirements in terms of meeting affordable housing needs and local affordability. This should be evidenced by a local housing need survey for the village, parish, or group of villages, and could be carried out as part of preparing a neighbourhood plan. Homes provided through this policy should remain affordable in perpetuity.
Market housing within rural exception sites
In normal circumstances a rural exception site will be solely for affordable housing. However, in exceptional circumstances, the Council will consider an element of market housing within a rural exception site in order to cross-subsidise affordable housing. For the purposes of this policy a 'market' dwelling is any dwelling which is not affordable housing as defined in the NPPF.
The number of affordable homes provided on a site should not exceed the proven need and the number of market houses proposed must be determined by submission of a robust viability assessment which shows the minimum number of market houses that would be required to make the scheme viable and therefore guarantee successful delivery of the affordable housing component. Viability assessment should meet the requirements set out in national Planning Policy Guidance (PPG), including ensuring that land values reflect the nature of an exception site and are robustly evidenced. In no circumstances should the proportion of market dwellings exceed 30% of the overall dwellings on site. The Council will have any such viability assessment independently verified at the applicant's cost.
Where exception sites include market housing, the combined gross internal floor area of those market homes must not exceed the combined gross internal floor area of the affordable housing for rent. It is envisaged that the average gross internal floor area of the market homes is unlikely to be less than that of the affordable housing for rent, but in any case, the number of market homes must not exceed the number of affordable housing for rent.
The requirement for a viability assessment will help to maximise the delivery of affordable homes in relation to market homes. Exception sites which contain market homes but no affordable housing for rent will not be permitted.
Exception sites which contain market housing must meet all their affordable housing provision on the development site, to demonstrate their viability and promote sustainable communities. Similarly, an exception site containing market housing must not be subsidised by another development seeking to make off site provision on the exception site, either through commuted sum or off-site provision in kind.
Successful delivery of these exceptional schemes will require Section 106 agreements including trigger points linking the delivery of market homes to the delivery of affordable homes. These will not restrict the price or include residency restrictions for open market homes but will require the home to be occupied as the sole or principal residence of an owner-occupier or tenant. It may also restrict the future increase in floor area, directly or indirectly, where this would not be in line with the policy.
Supporting Evidence
Review of the Planned Limits of Development (October 2023)
Housing Market Assessment (August 2023)
Whole Plan Viability Assessment (October 2023)
Allocations Policy (March 2023)
