Regulation 19 Rutland Local Plan
First Homes Exceptions Sites
What will the policy do?
The policy sets out where first home exceptions sites will be acceptable, why they are needed and how proposals for these will be assessed.
Policy H9 – First Homes Exception Sites View comments
1. Small exception sites for First Homes may be permitted within or adjoining Oakham and Uppingham on land not allocated for housing provided that they:
- are within the Parishes of Oakham and Uppingham; and
- meet a need for First Homes that is not already being met in Rutland; and
- do not compromise the protection given to areas or assets of particular importance in the NPPF; and
- may include a small proportion of other affordable homes (and may be required by the Council) due to significant identified local need; and
- do not compromise land needed for employment purposes.
2. Exceptionally the Council will consider provision of market housing as a means of cross-subsidising affordable housing as part of a First Homes exception site where:
- the provision of market housing to cross-subsidise the affordable housing is essential and proportionate and evidenced by an open book viability assessment at the applicant's expense (including an independent review of the assessment commissioned by the Council also at the applicant's expense); and
- the development meets the identified affordable housing requirement on site and not additional needs from elsewhere; and
- the proposal has not and will not receive any public subsidy for its development; and
- the number of market homes must in no circumstances exceed 20% of the overall homes on the site and that the total gross internal floor area of the market homes does not exceed the total gross internal floor area of the affordable homes.
Why is this policy needed?
First Homes are a specific kind of discounted market sale housing considered to meet the definition of 'affordable housing' for planning purposes. They are new homes that are built for first time buyers and must be discounted by at least 30% against market value. First Homes are the government's preferred discounted market tenure and should account for at least 25% of all affordable housing units delivered by developers through planning obligations. As part of the First Homes concept the Government has introduced First Homes exception sites.
First Homes are generally covered by the Affordable Housing Policy H7. Rural exception sites (Policy H8) can only be allowed in Designated Rural Areas in Rutland, whereas First Homes exception sites are the opposite and can only be allowed outside Designated Rural Areas. As Rutland has both areas Designated Rural Areas and those which are not (parishes of Oakham and Uppingham) a separate policy for First Home Exceptions Sites is needed to cover Oakham and Uppingham.
Supporting Evidence
Under the Planning Policy Statement for First Homes and the associated Written Ministerial Statement, First Homes Exception sites that are proportionate in size may be permitted in areas that are not Designated Rural Areas. In Rutland, the only parishes which are not designated rural areas are the parishes of Oakham and Uppingham.
Housing Market Assessment (August 2023)
First Homes Informal Planning Guidance 2022.
