Affordable Housing

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           Affordable Housing

May 2004

1.      Providing affordable housing in order to meet housing need is an important
aspect of planning policy on Ynys Mon. The level of that need on Ynys Mon has
been established by an Island wide housing needs survey. Such general data on
need can be supplemented by housing need profiles for individual communities, and
other information that can be obtained from supplementary local surveys. The SPG
will contribute to the Planning and Housing strategies of the Council.

2.     Affordable housing is widely defined as dwellings to meet the needs of those
who live in unsuitable accommodation and whose incomes prevent them from buying
or renting suitable houses and low cost market housing. Affordable housing can
comprise of a combination of subsidised rented housing, subsidised low cost home
ownership including          shared ownership and "low cost market housing". A
supply of all these types of housing is required to maintain balanced communities.

3.    The delivery of such housing requires close co-operation between the
Council's Planning and Housing Services, along with social partners and the
development industry on the Island.

4.    There are a range of new development sites where the Local Planning
Authority will expect (in priority order) the need for affordable housing to be
addressed by either:

(1)   on site provision or
(2)   off site provision or
(3)   by the payment of a sum in lieu of such provision.

5.      The failure to properly address affordable housing need can be a material
reason for refusal of permission for development. The Council's clear preference is
for the on site provision of affordable homes by developers in order to secure mixed
communities on the Island.

6.    This SPG sets out the procedures and mechanisms for making decisions on
such matters. It includes a requirement for applicants to have "strong local
connections" in respect of affordable housing provided through exception sites and
low cost market houses.

7.    In setting out clearly the expectations of the Development Plan system, with
regard to affordable housing, the Council hopes that the delivery of such housing
through the planning system on Ynys Mon will improve in the future. This will
compliment the work carried out on general land supply, particularly Joint Housing
Land Availability Studies as required by TAN 1.

8.     The Council expects developers to come forward with the differing
requirements of affordable housing addressed as part of the initial design proposals
for a new housing scheme.

9.    The design of affordable housing scheme should be of the highest order so as
to enhance the quality of local communities on the Island.

10.    The Council is reviewing its property portfolio to identify opportunities for
affordable housing.

1.    Introduction and Purpose

2.    Definitions - Affordable Housing and Housing Need

3.    Co-operation to Delivery Affordable Housing

4.    The Provision of Affordable Housing

5.    Design

6.    Procedures

7.    Agreements

8.    Housing Exception Sites

9.    Council Land and Affordable Housing

10.   Conclusion


1.    Housing Strategy

2.    Acceptable Cost Guidance

3.    Procedures

4.    Flow Diagram

5.    Exception Sites Procedure

6.    Affordability Calculator
      (Affordable Housing Assessment Form)

7.    Legal Heads of Agreement


                         INTRODUCTION AND PURPOSE

"A community's need for affordable housing is a material planning consideration
which may be properly taken into account in formulating development plan policies ...
It may be desirable in planning terms that new housing development in both rural
and urban areas should incorporate a reasonable mix and balance of house types
and size to cater for a range of housing need".

Planning Policy Wales para 9.2.14 (March 2002)

"The term describes the circumstances where a household is living in housing which
falls below minimum standards or fails to meet their essential needs in other ways
and does not have sufficient income to rent or buy even the cheapest housing at
prices prevailing in the housing market".

Local Housing Needs Assessment - A Good Practice Guide, Welsh Officer (May

1.1    This document is supplementary planning guidance issued by the Isle of
Anglesey County Council in support of adopted and emerging development plan
policies. The relevant plans and associated policies are:

      Ynys Mon Local Plan (1996) - specifically Policy 51 and Policy 52
      Gwynedd Structure Plan (1993) - Policy A9
      Ynys Mon Unitary Development Plan - Policy HP7.

1.2    The purpose of this Supplementary Planning Guidance (SPG) is to provide
detailed advice to local communities, developers and other users of the planning
system on how the Development Plan policies on affordable housing will be applied.
Therefore, the SPG helps strengthen the contribution that the planning system can
make to help meet the significant challenge of providing extra affordable housing on
Ynys Mon. However, it must be recognised that planning decisions can form only
one part of a wider strategy as the planning system which, by and large, only deals
with applications for new housing development. Such development comprises only a
small part of the overall housing stock. The Council's Housing Strategy (March
2004) has five key themes:

   Quality and Energy Efficiency of Dwellings
   Design, Accessibility and the Usability of dwellings
   Housing Needs and Housing Markets
   Community Sustainability and Social Inclusion
   Flexible Service and Support Frameworks.

This SPG will play a particular role in responding to the third of the above themes
which is reproduced at appendix one. Wider issues are also addressed through the
Council's Housing Strategy, including the renovation of existing properties, working
with private landlords and so on.

1.3   However, the Council recognises that people should be able to select
properties to buy or rent in a range of communities throughout the Island in

accordance with their needs, aspirations, means and within the broad framework of
planning and housing policies established by the County Council and the Welsh
Assembly Government. This also requires sustainable development so those in
housing need can access other services, e.g. schools, buses etc. A community's
need for affordable housing is a material planning consideration and the planning
system will endeavour to increase the supply of affordable housing through
negotiation with developers. Likewise, a failure to address issues of affordability can
provide reasons for refusal of development at the planning application stage.

1.4    The Council has allocated a range of housing sites for general market
purposes in the Development Plan. The Council wishes to ensure that under UDP
policies the affordable housing benefits people in need who have "strong local
connections". Definitions are provided to this effect.

1.5    However, in the short term, sites progressed for approval under the policies of
the adopted local plan must comply with the definition of "local person" as defined in
policies 51 and 52 of the plan:

"A local person is defined as someone who has had his/her only or principal home
OR his/her place of work within Ynys Mon for a period of 5 or more years. (The
period of 5 years can be made up in part by living and in part by working in Ynys

                           LOCAL CONNECTIONS'

a)      'Affordable Housing'

2.1     Technical Advice Note (TAN 2 1996) of the Welsh Assembly Government
states, "The term 'affordable housing' or 'affordable homes' ...... encompasses both
low cost market and subsidised housing (irrespective of tenure, exclusive or shared
ownership, or financial arrangements) that will be available to people who cannot
afford to occupy houses generally available on the open market". The definition is
therefore wide ranging and the purpose of the Council's planning policies is to
increase the number of such affordable homes on the Island.

2.2     "Affordable housing" therefore consists of both:

a) dwellings which aims to satisfy the needs of those who live in unsuitable
accommodation and whose incomes prevent them buying or renting suitable


b) Low cost marking housing which can be made available at a price which is lower
than the prevailing market but which meet the requirements of people who cannot
afford the prices of general market housing as their income levels prevent them from
purchasing the type/size of property they need. Examples include dwellings
supported by the Home Buy scheme or other shared quality arrangements and
properties controlled by covenant. UDP Policy HP7 refers to "affordable dwellings"
to ensure that all forms of residential development - houses, flats, maisonettes etc -
are used to provide for affordable homes, and not just houses.

2.3     Affordable housing therefore means dwellings of an adequate design
standard which are accessible to such groups of people. Low cost market housing
will not assist those most in need of affordable housing but can help a local
community by improving the mix and type of housing which is available.

The role of "exception sites" is dealt with in section 8 below.

b)      'Housing Need'

2.4    "Housing Need" - The guidance used for the Anglesey Housing Need Survey
stated that "the term need describes the circumstances where a household is living
in housing which falls below minimum standards or fails to meet their essential
needs in other ways and does not have sufficient income to rent or buy even the
cheapest housing at prices prevailing in the market".

2.5    This definition helps make the distinction between the role of affordable
housing provided for housing need as defined for the Housing Needs Survey and
other low cost ("cheaper") market housing which can help to secure a mix of
affordable dwelling and design types in new housing projects in towns and the rural
villages on Ynys Mon.

Need might arise for various reasons including:

People who do not own a house and who are establishing a new home e.g.
marriage; Young, elderly, people with disabilities/medical problems, or retired people
requiring smaller or specialised accommodation;

Households that include people who are employed, or about to be employed in Ynys
Mon, including key workers;

People who live outside Ynys Mon but who have established family ties with the

People dependant on for giving support to people on Ynys Mon.

In each case evidence of the need for an affordable dwelling will be required to be
shown and appropriate legal agreements on properties approved under the policies
for affordable housing.

c)    'Strong Local Connections'

2.6     For affordable housing that is provided for rent the occupancy of the dwellings
will be controlled via the common waiting list and the approved allocations policy of
the Council. These Council policies already take account of a person's connections
with the local community, in addition to the severity of their housing need.

2.7    For "Low Cost Market Housing" and "Exception Sites" the applicant/occupants
will need to prove (a) housing need and (b) Strong Local Connections which will be
defined as:
a person who satisfies at least three of the following descriptions:

   his/her parents were permanent residents n the area at the time of his/her birth
   he/she was in permanent residence in the area for five years as a child attending
school or who for special reasons attended a school outside the area but would have
been expected to attend a local school but for these special reasons;
   he/she is currently resident in the area, or previously resided in the area for a
continuous period of fifteen years as an adult;
   he/she is currently employed in the area, or has an open ended offer of
employment in the area which he/she cannot accept unless he/she is resident in the
   he/she currently has a parent living in the area;
   in the case of a person over the age of 55 he/she has a son or daughter or a step
son or step daughter or adopted son or daughter currently living in the area;
   he/she has the support of the community/town council for their status as a "local

ch)   Level of Need

2.8     The Anglesey Housing Need Survey of 2001 suggested that "there is a
significant requirement for additional affordable housing in the Council area". (Ch 11
- Volume III). It also established that "there is an annual need over the next five

years for 589 affordable homes ... (and) there is an estimated annual shortfall of
311 affordable dwellings per year for the next five years". (A gross requirement of
589 minus a 278 annual supply of units, giving net annual requirement of 311). The
greatest need exists amongst residents in the private rented sector (Vol III - Ch 4).

2.9    In addition to that survey the Council's Housing Waiting List provides
information on an ongoing basis to inform decisions on housing maters and will also
inform the preparation of housing need profiles for local communities.

2.10 Whilst it is plain that the housing needs of the Island will change over time, the
Council has nonetheless established the level of evidence required by Planning
Policy Wales (March 2002) and Technical Advice Note 2 (Planning and Affordable
Housing 1996) to seek the delivery of affordable housing via the Planning system on
Ynys Mon.

2.11 This general evidence of need can be supported, and explored in greater
detail when individual applications for development are to be considered. Such
profiles can be improved with inputs from local communities.

2.12 The Planning Service will look at data on housing need which can be provided
by the Housing Service in the form set out in the table below:

 Village / Town
                                                                     Annual Turnover
                                                                     (% age of stock)
 Total Stock           Local Authority
                       Private Rented (est
                       HB and common
 No properties sold
 through RTB
 No properties
 acquired via
 No applications on
 common housing
 No applicants on
 HomeBuy register
 No empty homes
 No properties for

This information can be supplemented by local surveys, and views from community
councils etc.

2.13 The Council can also accept supplementary information from developers in
respect of housing affordability within communities or for individuals on the Island.

The Council, in line with the Assembly guidance, must be assured that such
information comes from reliable and robust data sources and relates to local house
prices and rents, local incomes and the available supply and suitability of housing.

2.14 In those situations where a developer seeks to argue that affordable dwellings
cannot be provided on a specific project then the County Council will expect a
detailed viability analysis of the scheme and associated costs. The Council may
choose to retain external expert advice to help in such discussions. Standard
development costs such as demolition works, landscaping, noise bunds, flood
prevention measures, archaeological and ecological surveys etc will not be
considered as abnormal costs.


3.1     There can be little doubt that the challenge of providing sufficient affordable
housing has been central to many housing and planning concerns over recent years.
The lack of such housing is often described in terms of a "crisis" now affecting both
rural and urban areas. It has generated considerable discussion, and it can be seen
that government policy places a responsibility on local authorities to develop policies
and initiatives in response to this challenge. The theme of much government policy
is the need for "sustainable communities"; a message which also lies at the heart of
the "Vision" and which underpins the Development Plan for Ynys Mon.

3.2   The Council accepts its responsibility in this matter and this SPG identifies the
procedures and practises which will be in place to assist other players including the
development industry, their advisors and agents, to help make the necessary
progress in delivering a range of housing suitable to help meet this challenge. A
corporate approach, based on co-operation between Council Services, is required to
secure a greater provision of affordable housing and which draws upon the Housing,
Planning, Legal and sometimes Property Services of the Council.

3.3     Of course, and as is stated in the Housing Need Survey, "there is no reason
to think, once housing need has been established that all need must be met through
the planning system". The report on the 2001 Survey goes on to explain that
changes within the existing housing stock can effectively help to address the needs
identified. Such action is informed by the Council's Housing Strategy.

3.4  Land Registry data gives a clear indication why affordable housing has
become a major issue on Ynys Mon, as in other parts of Wales and the UK.

House Price Changes 2000 - 2003 UPDATED

                       Last Quarter 2000      Last Quarter 2003      % Change
 Detached                    87,461                148,370                69,64
 Semi-Detached               50,927                 88.241                73.27
 Terraced                    37,128                 66,315                78.61
 Flat/Maisonette             78,500                124,900                59.11*
 All - Average               64,210                107,941                68.11

(* small number of sales on the island in this category leads to major variations)
Such price increases are clearly way in excess of increases in wages over the same
period and will have made the problem of accessing suitable housing more

3.5     In the light of such figures the operation of effective responses to the
challenge of affordable housing therefore requires ever closer co-operation between
the Planning and Housing services, along with other players in the housing process
like registered social landlords and local builders/developers.


4.1     In order to help all parties deal with this SPG a number of definitions and
criteria are required.

a)     What is Affordable?

4.2     Central to the requirement for affordable housing is a calculation of the
relationship between income and property/rental prices in the local housing market.
To be affordable:

the rend for a dwelling must be no more than 30% of the net household income,


mortgage payments should not be more than 3 times net disposable household
income, including spouse or partner's. (Income less income tax and national
insurance but including housing benefit (if any).

Total housing costs, including Service Charges where applicable, must fall within the
30% of income level.

b)     "Affordable" House Prices

4.3     To help inform negotiations on affordable housing some further guidance is
required on what the Council consider to be suitable price range to ensure the
provision of affordable housing within development schemes. Government guidance
suggests that the publication of actual figures as to the price of affordable housing is
not always helpful because of changes in house price/income relationships over
relatively short periods.

4.4     The Council takes the view that to be affordable, and maximising access
opportunities for people in affordable need, then low cost market housing should be
made available at around the prices set out in the Acceptable Cost Guidance (ACG)
for the use of social housing grant as published by the Welsh Assembly
Government. It is inevitable that the details of individual site development
characteristics willi impact upon the situation. The ACG is banded to recognise the
different costs in market areas across the Island. The ACG at the time of preparing
this SPG (Spring 2004) is shown at appendix two, but always ask for the latest

4.5    It should not be assumed that financial subsidy is always available in the form
of Social Housing Grant when calculating land acquisition costs. It is important that
SHG free schemes be allowed to proceed to maximise the potential of affordable
housing provision of Ynys Mon.

c)     Thresholds - When is Affordable housing to be provided?

4.6   All sites of 10 or more as identified in Policies 51 and 52 in the Ynys Mon
Local Plan, and on sites of 10 or more (or 5 or more in villages) as identified in Poilcy

HP7 in the emerging UDP. The Council consider that the UDP Policy HP7, read
alongside the Local Plan policies, on affordable hosing is a material consideration
when planning applications are to be determined.
(the Council will implement the policy on site area if it is felt applicants are seeking to
undermine the threshold - the policy will apply to all sites of 0.3 hectare or more).

4.7   Developers will therefore be expected to take this requirement into account
when negotiating the purchase of land for development and preparing design
proposals for sites.

ch)    Types of Affordable Housing

4.8   The following 3 options are available to the applicant to provide the affordable
housing. In priority order they are:

(1)    Properties to be sold / leased to Registered Social Landlords (RSLs).

This form of accommodation is characterised by below market rents usually paid
weekly. It is important to ensure these units are secured on a permanent basis. The
level of rent charged by an RSL is treated by the Council as being affordable to
those in greatest need.

(2)    Properties for rent with occupier conditions tied to the Council's Housing
Allocation Policy and occupants to be nominated off the Council's Waiting List.

(3)   Properties to be sold at an agreed figure with the Council subject to covenants
and resale agreements.

4.9   The Council will consider other arrangements suggested by developers, but
these must ensure affordability in perpetuity.

4.10 If following viability analysis of a scheme it is agreed that on site provision is
not made then the options are:

(4)   Payment in lieu to the Council's Affordable Housing Fund, this will be used by
the Council to fund alternative affordable/social housing when sufficient funds have
been generated and suitable opportunities arise which are in line with the Local
Housing Strategy.

(5)   Provision of affordable housing on an alternative site as agreed by the Council
and the developer. This is not the Council's preferred method but it may be
appropriate if there are good planning reasons why on site provision is not suitable.

Phasing and Timing

The affordable dwellings to be provided under these policies will be timed and/or
phased by legal agreement across a development site so that the affordable units
are provided by a specified stage in the development. Such agreement will ensure
the affordable units are spread throughout the development.

d)      Low Cost Market Housing

4.11 In addition to those people identified as being in housing need via the 2001
Survey there are other people who cannot access the housing market due to the
prevailing house prices relative to their incomes. The Council recognises that not all
of the people who wish to obtain low cost housing may be living in unsuitable
accommodation, indeed some may just with to join the property ladder for the first
time, but they are in affordable need as they are unable to access the housing
market to meet their requirements. As stated earlier low cost market housing is not
considered an appropriate response for people in strictly defined housing need and
who require affordable housing as defined and quantified by the housing need

Low cost market housing can however make a very valuable contribution to securing
an adequate range and type of housing on Ynys Mon. The key challenge is to
ensure that dwellings provided under this route are affordable to people on low and
modest incomes.

4.12 Mixed types of development are to be encouraged in order to meet the
differing needs of urban and rural communities including starter homes and the
need of older people, single person households etc.

4.13 The Council excepts developers to come forward with the differing
requirements of affordable housing addressed as part of the initial design proposals
for a new housing scheme.

4.14 As stated above legal agreements will be required to ensure such housing
remains available to those in affordable housing need in the future.

dd)     Housing Needs/Community Profile

4.15 The 2001 survey shows the justification for affordable housing policies in Ynys
Mon wide and as the strategic planning and housing authority the Council will seek to
enable the maximum number of opportunities. The Council's Housing Service will
help identify the particular needs within any given area of the Island and provide a
housing profile of that need to the Planning Service. That can be supplemented by
information from the developer provided it is robust and reliable. This information will
help the Council to determine which of the options set out above is most suitable to
the settlement concerned and to help inform the negotiations with developers.

4.16 The findings of the 2001 census are also available to help increase our
understanding of local communities and can be supplemented by further local data

e)      What does affordable in perpetuity mean?

4.17    Affordable in perpetuity (either to rent or buy) means that the dwelling must

     Affordable to the first occupier;

   Affordable to potential subsequent occupiers from the local area;
   Be occupied by people in need of affordable housing

4.18 To achieve this situation the developer concerned requires a binding section
106 agreement or planning obligation which limits:
Occupancy of the dwelling to those in housing/affordable need;

The value of the dwelling on resale to a formula

4.19 If no Registered Social Landlord is involved then the Council will need to hold
a covenant or resale agreement on the property(s). This mechanism provides a
trigger to alert the Council to the resale of the property and again the valuation of the
property can be determined in order to maintain it as an affordable house.


a)    High Quality of Design

5.1     The Council believe that the way in which the developer approaches the
design of a residential housing, or mixed use, scheme can fundamentally help to
address the issues of affordable housing. Rather than standardised styles of
building for schemes of bungalows, detached and semi detached properties the
Council feel more variety is required to address the needs of those in affordable
need, the elderly, younger age groups and others. The Council will expect high
standards of design, layout and landscaping for all housing schemes including those
having an affordability element. The schemes should respect the character and
distinctiveness of the area in which they are being built and should be located to be
indistinguishable from general market housing provided on the site.

5.2    The Council wishes to see design approaches that spread the affordable
dwellings across a development site and not simply provide them in one block.

b)    Space Standards

5.3    An issue that can be of critical importance to secure a project that is designed
to allow partnership work with Housing Associations, and for the use of Social
Housing Grant in the scheme, is the space standards of the dwellings concerned.
The Welsh Assembly Government publish development quality requirements that the
County Council will refer to in those negotiations where the space to be provided in
affordable homes projects is a matter of concern.

5.4   The Welsh Housing Quality Standard can also help create appropriate
standards for local developments.

c)    Permitted Development Rights

5.5   To secure affordability in the longer term it is likely that the permitted
development rights will be removed from the properties constructed as affordable

ch)   Modern Methods of Construction

5.6   The Council is aware of the developments in technology that might allow for
modern methods of construction to provide efficient and cost effective responses to
the need for more affordable homes. The Council will continue to monitor such
developments in technologies and actively seek to exploit appropriate opportunities
which can benefit local communities.

d)    Non Traditional Dwelling

5.7  The Council is also aware of the interest and potential of non traditional
methods of supplying dwellings, e.g. cabins and chalets. The Council does not

discount the potential of such opportunities but will have a keen interest to ensure
they are located in appropriate locations which meet principles of sustainable


6.1    In operating procedures for affordable housing the Council has a clear
preference to see:

a)    on site provision by developers;

b)    where the developer claims they cannot afford any suitable and affordable
housing provision they must demonstrate this by a viability analysis,

c)      Where there are good planning reasons for which, though the site is in
principle suited to provide a contribution of affordable housing, developers persuade
the Council that the provision should be off site (either by way of housing elsewhere
or a financial contribution) then the Council has options and possibilities in mind
which are loosely described at appendix three.

Appendix four shows a flow diagram for dealing with applications involving affordable

6.2    In those exceptional circumstances where payment in lieu is proposed in
place of on site provision then a standard formula will be applied to provide a guide
to the contribution expected from the developer. The formula is set out at option four
in appendix three.

ch)   Discussions and Negotiations

Discussions and negotiations relating to these policies must be conducted with a
representative of the Council's Planning Services in attendance to ensure there is no
misunderstanding with regard to the provisions that will be included in legal
agreements and other conditions. Whilst the Council will welcome and encourage
discussions between the development industry and social partners it is important to
ensure the integrity of the planning process to secure effective implementation of the
development plan policies.

                              LEGAL AGREEMENTS

7.1   In order to secure affordable housing in perpetuity and to ensure that relevant
schemes conform to approved planning policy legal agreements and obligations will
be sought in appropriate circumstances.

In the case of schemes where:

a)    the developer build and then transfers affordable housing units to a RSL then
covenants will be required for;

b)    schemes with no involvement of an RSL,

c)    off site agreements,

As well as

ch)   low cost housing schemes

d)    exception sites

Legal agreements will be required. Legal Heads of Agreement for each type of
scheme are shown at appendix three.

                           HOUSING EXCEPTION SITES

a)     Definition of exception site

8.1    In exceptional cases planning policy allows for permission to be granted on
land which lies outside of the defined development boundaries of settlements in
order to provide for affordable housing need in local communities. These are called
"exception sites". On such sites the same considerations will apply with regard to
design etc as set out above. The key issues to be satisfied are:-

   The site is on the edge or immediately adjoining a recognised settlement,
   The exception dwellings(s) will meet an identified housing need,
   The dwelling(s) are subject to legal agreement securing affordability in perpetuity,
   The design provides appropriate space standards and fits in with its surroundings
while ensuring it is suitably designed to act as an affordable dwelling.

8.2     An exception site can be for a single dwelling, or a group of dwellings, all of
which can help meet housing need. A group of dwelling might provide the
opportunity for a mix of tenures. In the case of affordable housing development that
is applied for as an "exception" to normal planning policies (see Planning Policy
Wales March 2002 para 9.2.19) then the site concerned must be on the edge or
immediately adjoining a settlement recognised in the development plan. As the site
is not considered suitable for open market housing then this reduces the normally
high land values to the prices for the agricultural use of the land. Like all other
development the site must meet the criteria for sustainable development, have
adequate access and should not be affected by issues such flood risk, air noise or
other planning constraints. As the "exception" site is for people in affordable need
then it makes sense to ensure the housing can access local services such as shops,
schools etc. Appendix five shows how discussions/applications for exception sites
will be processed.

8.3     Development on such sites will be subject to legal agreement to ensure the
dwelling(s) are affordable and occupied by persons have a strong local connection
on first occupation and in perpetuity. This may restrict people's ability to get back in
to the open market but as their needs change they can apply for a different
affordable home. Exception sites for affordable housing will not be permitted in open
countryside away from settlements because there is an over riding need to protect
the character of open countryside, secure efficient settlement patterns for the future
and reduce the reliance on the use of private cars.

8.4    The housing to be built should be occupied by people who can be shown to
be in affordable housing need as described in section 4 (a) above and legal
agreements will therefore be required in relation to such housing to ensure they
remain available as affordable housing the future for people with strong local
connections. With the recent upward shift in house prices on the island it is to be
expected that a larger number of people are in affordable need.

8.5   The Council will wish to monitor the number of dwellings permitted on
exception sites. As a general rule the number of such exception sites should not
exceed the size of the settlement within the settlement hierarchy as set out in the

Local Plan/UDP. In effect the largest number of such sites should relate to the larger
settlements where the usual public services are available.

b)     Affordability Calculator

8.6     For those people who make applications for exceptions sites then a
justification is required for their housing need. A simple calculator of whether people
are in need of affordable housing support can help in the decision making process
on these policies. The Assessment Form at appendix six is suggested for this
purpose and is based upon the guidance within the Homebuy scheme. A letter from
the Building Society confirming the borrowing capability o the household in need will
also be considered as an alternative. The Council's Housing Service will asses the
information presented and advise the Planning Service if the applicant is in need of
affordable housing and justifies and exception to normal policy. Given the
requirements to assess such information and the associated legal agreements then
applications of this nature will take longer than the target period of 8 weeks to
determine. A procedure for this process is outlined at appendix four.

8.7    The Council believe that with the significant rise in property prices over recent
years, and the associated need for more affordable homes, that a more proactive
approach to housing exception sites is possible in order to help meet the need for
affordable homes in communities on the island. Such an approach does not mean to
abandon the planning history of any particular settlement nor to ignore the principles
of sustainable development but to proactively help communities to identify
plots/parcels of land suitable for affordable housing.


9.1    Due to the importance which now attaches to this issue the County Council
will seek to promote a number of schemes for affordable housing on Council owned
land which is surplus to operational requirements. Some of the land will be adjacent,
and on the edge of settlements and thus considered suitable for "exception" housing
sites. It will however be subject to the same policy tests as any other land suggested
by private developers or individuals, including the need for a strong local connection,
to ensure its suitability in line with the principles of sustainable development.


10.1 This SPG sets out the Council's expectations and requirements as regards
the development of affordable housing under planning policies. The procedures in
the appendices will assist developers and others to understand the processes
involved in implementing development plan policies.

10.2 The effective implementation of the Council's planning policies, in line with the
additional guidance in this SPG, will help to address the challenge of increasing the
supply of affordable homes on Ynys Mon.

                                            APPENDIX ONE
                                          HOUSING STRATEGY

 Housing Needs and Housing Markets
 Summary of Problems and Challenges:

 a. Housing needs on Anglesey are substantial. They arise, in the main, due to a natural net increase
 in households.
 b. Housing demand on Anglesey is also substantial and is, in part, reflected in recent increases in
 house prices.
 c. Restrictions on housing development in some areas have reduced the scope for meeting locally
 arising housing needs and demands.
 d. The lack of sufficient suitable and affordable housing is a contributory factor in young people leaving
 the island.
 These relate to Strategy Objectives because:
 a. Effective responses to both housing needs and demands are necessary to ensure that strategic
 economic agendas are addressed.
 b. Retention of people on the island who can contribute to its economic and social life necessitates an
 adequate supply and range of good quality housing.
 Option(s) selected to tackle the problems and meet the challenges are:
 a. Ensuring that the over development of housing does not take place in sensitive areas (e.g. Areas of
 Outstanding Natural Beauty)
 b. Ensuring, overall, an adequate supply of different types of tenures of housing to respond to housing
 needs and demands
 c. Promoting the bringing back to use of empty dwellings
 d. Encouraging the bringing back to use of dwellings over shops, notably in Holyhead, Llangefni,
 Amlwch and Menai Bridge, but also in other communities
 e. The appointment / designation of a staff member with a specific remit in relation to empty dwellings
 and dwellings above shops
 f. Using planning tools and 'pooling' planning gains in order to ensure an appropriate supply of social
 rented housing and where appropriate, low cost market housing
 g. Investigating the potential for the strategic expansion of selected established communities
 h. Directing an element of the new framework for grants and loans with particular attention being given
 to first time buyers
 i. Development of an equity retention scheme that offers building plots to self builders.
 j. Maintaining and refining a scheme that offers building plots to self builders
 k. Continue to review and monitor the success of the homebuy scheme, and if appropriate, commit
 relevant level of resources through the Social Housing Grant Programme, and consider the availability
 of recycled capital receipts from previous participants in the scheme.
 Progress is to be monitored through:

 a. Analysis of waiting and transfer lists on a quarterly basis.
 b. Undertaking a comprehensive housing needs assessment and housing market analysis in 2006.35

   The comprehensive guidelines for local authorities regarding housing markets, issues by the Welsh Assembly
Government, have been noted. These will guide this work and mark a moving on from what otherwise might be a
narrowly framed housing needs approach. See Welsh Assembly Government (2002) "Local Housing Market

                               APPENDIX TWO
                 ACCEPTABLE COST GUIDANCE FIGURES - 2006/2007

                                      Isle of Anglesey
    1                      There are no Community Councils which fall in this band
    2                                    All except listed as 3, 4 & 5
    3             Holyhead, Llanddaniel Fab, Llanddona, Llanfaelog, Llanfair- Mathafarn -
                 Eithaf, Llanfihangel Ysgeifiog, Llangefni, Llanidan, Penmynydd, Pentraeth
    4             Cwm Cadnant, Llangoed, Llanfairpwllgwyngyll, Menai Bridge, Trearddur
    5                                             Beaumaris

  Table 1 - Self-Contained Units - General Needs and Elderly

Unit                       Band 1   Band 2   Band 3   Band 4  Band 5  Band 6
7 person 4 bed house        143,500 156,100 171,200 191,300 206,300 226,400
6 person 4 bed house        127,300 137,900 150,600 167,600 180,400 197,400
5 person 3 bed house        109,700 118,900 129,900 144,700 155,700 170,400
4 person 3 bed house        103,900 112,500 122,900 136,700 147,000 160,800
4 person 2 bed house         97,900 106,600 116,900 130,800 141,100 154,900
3 person 2 bed house         80,500   87,800   96,500 108,100 116,900 128,500
3 person 2 bed               88,200   98,800 111,500 128,500 141,300 158,300
3 person 2 bed flat           79,400       83,700       88,900        95,800      101,000      107,900
2 person 1 bed flat           68,200       72,100       76,800        83,000       87,700       93,900
1 person 1 bed bedsit         50,400       53,500       57,200        62,200       65,900       70,900
Shared Abbeyfield             65,600       68,200       71,400        75,500       78,700       82,800

  Table 2 - Self-Contained / Shared Housing - Supported Housing
  Newbuild Part of Larger Development

        Residents           Staff            General            General               Fire
                                              Needs           Supplement**        Supplement**
           1                                2p 1b flat            4,800                2,000
           1                  1             3p 2b flat            4,800                2,000
           2                               4p 2b house            9,500                3,200
           2                  1            5p 3b house            9,500                3,200
           3                               6p 4b house            13,000               4,300
           3                  1            7p 4b house            13,000               4,300
   *For schemes with no General Needs equivalent Housing Directorate will provide specific guidance
   **Per dwelling
   Where applicable use appropriate General Needs Wheelchair supplements

  Table 3 - Wheelchair Supplements*

General Needs                  Band 1        Band 2      Band 3        Band 4     Band 5       Band 6
         <=3P                  16,200        21,500      27,800        36,300     42,600       51,100

             4P    32,500   37,700   43,900   52,200   58,400   66,700
            >=5P   40,100   46,300   53,600   63,500   70,800   80,600
*Per dwelling

                 APPENDIX THREE

            Steps 1-3 are the same for all options
  STEP 1            Trigger planning policy based on size of
  STEP 2            Local Planning Authority to consider if site
                    is required for affordable housing by
                    consulting Housing Service and joint
                    discussion of the housing needs survey
                    and profile
  STEP 3            LPA to inform applicant of prioritised

                    1. Sold/leased to Registered Social
                    Landlord (RSL)
                    2. Rental/occupier conditions
                    3. Sold within affordability zone
                    Option 4/5. Only if no need is identified
                    on site

              OPTION 1 - SALE / LEASE TO RSL
  LPA lead         Planning ask Housing whether Housing /
                   RSL wish to buy / lease?
                   If yes* -
  STEP 4           RSL and developers meet with Council
  (Housing lead)   and agree details of scheme
  STEP 5           Developer advised LPA of agreement and
  STEP 6           LPA issue decision with standard 106
                   * If no then discuss other options

  STEP 4          Planning notify Housing so that -

                    Housing and developer can meet to

                    * occupancy management
                    * rent levels
  STEP 5            Housing notify Planning of outcome of
  STEP 6            Developer confirms agreement to
                    Planning and S106 agreement made in
                    order to issue decision

                    LOW COST MARKET HOUSING
          STEP 4          Planning inform Housing so that Housing
                          can meet developer to identify:

                             * Sale price
                             * Occupancy criteria (including strong
                             local connection)

                             and notify Planning of result
          STEP 5             LPA advises developer of price and
                             arrangements for qualifying tenants and
                             affordability share
          STEP 6             Developer agrees
          STEP 7             S106 signed and decision issued

                      OPTION 4 - PAYMENT IN LIEU
            (Only operates if no need in settlement concerned)
          STEP 4          LPA inform developer no need in area
                          and request payment in lieu **
          STEP 5          Developer agrees and payment made to
                          Housing Revenue (Affordable) Fund
          STEP 6          LPA issue decision with S106 to ensure

** Payment is based on a formula calculated as follows

Total number of units                X

Affordable Units %                   X

Accepted Cost Guidance (ACG)         X

Relevant social housing
grant rate (56%)

                                      = Sum payable

               OPTION 5 - ALTERNATIVE SITE
  This option is only used in exceptional circumstances if no
   need exists in an area / affordable inappropriate for the
                        development site
STEP 4               Developer informs LPA site not suitable
STEP 5               Developer with Council identify alliterative
                     site for affordable provision (need not be
                     new build)
STEP 6               Section 106 to be agreed with consent
                     * Development in tandem
                     * Ratio / % age
                     * occupancy criteria


                            APPENDIX FIVE


Planning policy team to assess site against normal planning criteria and information
on constraints, site history etc

Factors to be considered

     Highways and access
     Landscape/Biodiversity interest
     Flood Risk
     Safety/Hazardous/Noise constraints
     Information on workplaces
     Green Field / Brown Field / unused buildings in the area
     Contaminated Land
     Waste Water
     Utility supplies
     Access to local services (bus, shops, school etc)
     Site History
     Other relevant Development Plan policies.

Discuss with Planning Control Officer



A) Meeting with applicant to explain the exception policy and associated

B) Individual applicant to submit income details to validate the need for an
"exception site" including housing market information about the settlement and
surrounding area (houses for sale, market prices etc)

C)    Applicant to prove local person/strong local connection

CH) Housing Services advise on the merits of the application for affordable housing

D) If a developer is involved on a site for more than one exception unit then an
agreement is required over occupancy conditions and how to agree availability in


If relevant policies and agreements are satisfied the planning application is processed
in normal manner and consent with associated agreements approved.

                            APPENDIX SIX

                     FFURFLEN ASESU ANGENION TAI

    INCWM (Yn ol Mis)            £            INCOME (per month)
Incwm Net Ymgeisydd Un                      Net Income Applicant One
Incwm Net Ymgeisydd Dau                     Net Income Applicant Two
Cyflog Ychwanegol                           Additional Wages
(e.e. Goramser)                             (e.g. Overtime)
CYFANSWM INCWM (1)                          TOTAL INCOME (1)

GWARIANT                                          EXPENDITURE
Morgais                                     Mortgage
Taliad Yswiriant                            Insurance
(Anghyflogaeth /Salwch)                     (Redundancy/Sick)
Taliad Yswiriant Eiddo                      Property Insurance
Taliad Bywyd                                Life Assurance Payment
Cynilion e.g. TESSA, ISA                    Savings e.g. TESSA, ISA
ayb                                         etc
Yswiriant Car                               Car Insurance
Costau Rhedeg Car                           Motor Expenses
Benthyciad Car                              Car Loan Repayment
Treth Cyngor                                Council Tax
Treth Dwr                                   Water Rates
Trydan                                      Electricity
Nwy                                         Gas
Bwyd                                        Food
Ffon ty a symudol                           Home & Mobile Telephone
Trwydded Teledu                             Television Licence
Taliadau Pensiwn                            Pension Payments
Gwarchod Teulu/Cynnal                       Child Minding /
Plant                                       maintenance
Benthyciad Banc                             Bank Loan Repayment
Cardiau Credyd/Cardiau                      Credit Cards / Store Cards
Eraill: Noder Isod                          Other: Please Note Below

CYFANSWM                                    TOTAL
GWARIANT (2)                                EXPENDITURE (2)

GWEDDILL MISOL (1-2)                        DISPOSABLE INCOME

                                     APPENDIX 7

Heads of Terms for Section 106 Agreements Securing Affordable Housing

These heads of terms provide an outline only as to what is required in a legal
agreement to secure affordable housing. The precise terms of each agreements will
be the subject of negotiation during the course of each planning application.

Where a Registered Social Landlord (RSL) is involved

   Identifying that part of the site which provide affordable hosing and the number of
those dwellings
   Confirmation of the provision of affordable housing through a (preferably names)
   Restriction of the provision of affordable housing
   Reference to allocation criteria for affordable housing
   (Where appropriate) alternative means of providing affordable housing where
reasonable steps to secure funding for RSL development have failed
   (Where provision of affordable housing by shared ownership) provisions for
second and subsequent sales, restriction on re-sale price and allocation criteria on

Low Cost Renting Where No RSL is involved

   Identifying that part of the site which will provide affordable housing and the
number of those dwellings
   Provision as to phasing of the development to ensure completion of affordable
housing before completion of remainder of development
   Reference to the allocation criteria to be used for the affordable housing and
provisions that LPA can police occupation to ensure compliance with agreed criteria
   Provisions as to rent structure
   (Where applicable) provisions as regards management arrangements.

Low Cost Housing for Sale

    Identifying that part of the site which will provide affordable housing and the
number of dwellings
    Provisions as to phasing the development to ensure completion of affordable
housing before completion of remainder of development
    Criteria to define those who may purchase the affordable housing
    Criteria to determine initial sale price
    Mechanism for calculating price of second and subsequent sales
    (Where applicable) provisions for relaxation of price or allocation restrictions but
in exceptional cases only (e.g. demonstrable and long term failure to sell subject to
the restrictions).


•   Planning Policy Wales March 2002 Welsh Assembly Government
•   Technical Advice Note 2 1996 Welsh Office
•   Ynys Mon Local Plan 1996 Isle of Anglesey County Council
•   Gwynedd Structure Plan 1993 Gwynedd County Council
•   Ynys Mon Unitary Development Plan 2001 Isle of Anglesey County Council
•   Application of Planning Policy Relating to Housing. Letter from Sue Essex AM 30
    January, 2003
•   Supplementary Planning Guidance June 2003 Chester City Council
•   Housing Need Survey 2001 Fordham Research for Isle of Anglesey County
•   Housing Strategy March 2004 Isle of Anglesey County Council
•   Supplementary Planning Guidance Affordable and Key Worker Dwellings June
    2002 Oxford City Council
•   Affordable Housing Supplementary Planning Guidance August 2001 North
•   Affordable Homes for South Shropshire People December 2002 South Shropshire
    District Council
•   Supplementary Planning Guidance on Planning Gain (draft) January 2004
    Macclesfield Borough Council
•   Affordable Housing Code of Practice North Devon District Council
•   Affordable Housing Need in Harrogate District February 2001 Harrogate District
    Local Plan Strategy and Policy Guidance on Delivering Affordable Housing
    Carrick District Council
•   Supplementary Planning Guidance Wealden District Council

• National Assembly web site (Housing / Planning sections)
• Office of the Deputy Prime Minister web site
• Housing Corporation web site