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Southwark Council's Affordable Housing Policy

Southwark Council’s Affordable Housing Policy, P1, sets out the thresholds and expected contributions. This policy applies to many forms of development and requires that development that creates any new homes must contribute a minimum of 35% affordable housing, subject to viability.

Like many councils in London, Southwark’s Affordable Housing Policy is very strict and can make a development unviable.

Larger developments, of 10 units or more, are expected to provide a provision of affordable housing on site.

Smaller developments, of 9 homes or fewer, are required to pay a financial contribution. For many applicants submitting a small scheme, contributing thousands of pounds is unforeseeable and will push applicants to reconsider or withdraw their application.

However, affordable housing is required subject to viability. Policy P1 (3) states that “viability appraisals and reviews are required for all developments”, therefore it is critical to engage with a Viability consultant to assist with any proposal providing new homes in the Southwark Council area.

A Viability Appraisal will fully evaluate the values and costs associated with your scheme to understand whether any developer contributions, including affordable housing, should be provided. If you would like assistance with a viability appraisal, please feel free to get in touch, and we would be more than happy to help!


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