Merton Affordable Housing Policy

In November 2024, the Longon Borough of Merton adopted their new Whole Local Plan.

The Local Plan sets out the strategic vision and policies for development in the area - including housing choice, economic growth, and site allocations.

Affordable Housing Thresholds

Policy H11.1 seeks to ensure Merton's existing and future residents have a choice of different types, sizes and costs of homes. This includes the strategic target of 50% of new homes built in Merton between 2021/22-2037/38 to be affordable.

In addition, the Council expects the following levels of affordable housing to be delivered by development:

Threshold (gross)	Affordable Housing level	Affordable housing tenure split	Required provision
10 or more homes	Threshold level to be eligible for the Fast-Track Route as set out in the London Plan provided all provision accords with the tenure mix requirements of Strategic policy H11.1 and is on-site without public subsidy: 50% for public sector land or on industrial land where redevelopment would result in a loss of industrial capacity. For all other sites up to 50% with a minimum provision of 35%.	70% Low-cost rent 30% Intermediate (Including a minimum of 25% First Homes)	On-Site Only in exceptional circumstances will the provision of affordable housing off-site or financial contribution in lieu of provision on-site be considered by the council, and this must be justified and such schemes will be required to provide a detailed viability assessment and contribute to the objective of creating mixed and balanced communities.
2-9 homes	Financial contribution equivalent to 20% affordable housing provision.	70% Low-cost rent 30% Intermediate (Including a minimum of 25% First Homes)	Financial contribution

Affordable housing contributions would be secured via a Section 106 agreement or equivalent legal deed (such as a unilateral undertaking).

Viability

Contributions towards affordable housing are subject to viability. That means that if a development is agreed to be unviable, it will not need to provide a contribution.

A Viability Assessment will fully evaluate the values and costs associated with your scheme to understand whether any developer contributions, including affordable housing, should be provided.

Any evaluation of viability would need to be transparent and objective. This should also be conducted in line with the London Plan and Mayor’s Affordable Housing and Viability SPG.

Therefore, if you believe that a contribution towards affordable housing would make your development unviable, you might consider submitting a Viability Assessment with your application.

Any Questions?

Viable Placemaking are a town planning consultancy with a specialisms in housing needs, development economics, and viability.

We frequently work with applicants, developers, and fellow planning consultants to support in schemes delivering affordable housing, demonstrating housing needs, and navigating the viability matters within a planning application.

If you have any questions about Merton's Local Plan or the viability process, please don't hesitate to get in touch and we would be more than happy to help.