Policy H/AH: Affordable housing

Self-contained dwellings and co-living developments 

1. All major developments for housing will provide at least 40% of the new homes on site as affordable housing, unless a different requirement is set out within the allocation policy or the development is on land within the

A statutory designation made for the purposes of checking the unrestricted sprawl of large built-up areas, preventing neighbouring towns from merging into each other, assisting in safeguarding the countryside from encroachment, preserving the setting and special character of historic towns and assisting in urban regeneration by encouraging the recycling of derelict and other urban land. Specific Green Belt purposes have been set out for Cambridge.

. This applies to all residential developments of self-contained dwellings, including those for Build to Rent or specialist accommodation, and also to

Large scale purpose built and managed residential accommodation, often comprising self- contained studios, with extensive communal facilities.

developments for the equivalent of 10 or more dwellings (calculated using the other communal accommodation units to dwellings ratio in the Housing Delivery Test). 

2. Within the affordable housing secured on major developments for housing (except for within Build to Rent and

Large scale purpose built and managed residential accommodation, often comprising self- contained studios, with extensive communal facilities.

developments), the proportions of each affordable housing tenure will be provided as set out in Table 00.

3. All affordable housing secured within Build to Rent and

Large scale purpose built and managed residential accommodation, often comprising self- contained studios, with extensive communal facilities.

developments will be provided as Affordable Private Rent homes. 

4. Any major developments for housing that are on land within the

A statutory designation made for the purposes of checking the unrestricted sprawl of large built-up areas, preventing neighbouring towns from merging into each other, assisting in safeguarding the countryside from encroachment, preserving the setting and special character of historic towns and assisting in urban regeneration by encouraging the recycling of derelict and other urban land. Specific Green Belt purposes have been set out for Cambridge.

will provide at least 50% of the new homes on the site as affordable housing, in accordance with the Golden Rules set out in national planning policy and guidance. 

5. New affordable homes will be: 

  a. limited to people in need of affordable housing; 

  b. available in perpetuity (wherever possible); and 

  c. tenure blind in design so that they are indistinguishable from any other housing tenures and well-integrated with market units on the site. 

Additionally, with the exception of affordable homes provided on

Large scale purpose built and managed residential accommodation, often comprising self- contained studios, with extensive communal facilities.

developments, new affordable homes will be: 

  d. phased proportionally within the build out of the development to enable proper integration and timely provision; and 

  e. designed to accommodate different family compositions, with the bedspaces per dwelling for social and affordable rent homes in line with Table 00.

6. Within major developments for housing, the new affordable homes must be dispersed in small groups or clusters that: 

  a. create an even distribution of affordable housing throughout the development as a whole, and when considered in combination with neighbouring developments; 

  b. contain a mix of affordable housing tenures and a mix in the number of bedrooms; and 

  c. are proportionate in size to the overall size of the development, having regard to the type and location of the housing being provided. 

7. The off-site provision of affordable housing or a financial contribution (commuted sum) for affordable housing will only be considered if it can be demonstrated that: 

  a. on-site provision would not be practicable; 

  b. the proposed alternative to on-site provision would be more effective in achieving a mixed and balanced community; and 

  c. the financial contribution for, or off-site provision of, affordable housing is at least equivalent to the increased development value resulting from affordable homes not being provided on-site, unless the applicant’s viability assessment provides compelling evidence that this would not be viable. 

8. Where a larger site has been subdivided into smaller development parcels, the major developments threshold and the requirement for 40% of new homes to be affordable housing will apply to the site as a whole. 

Accommodation for sole use by students or academic staff provided in individual, self contained units either as part of a shared student accommodation development or an individual proposal, or bedrooms in either halls of residence (PBSA) or shared houses (HMOs) with shared facilities.

 

9. Any developments of student bedrooms that are equivalent to 10 or more dwellings (calculated using the student accommodation bedrooms to dwellings ratio in the Housing Delivery Test) or any developments of 10 or more self-contained student units will provide a financial contribution for the off-site provision of affordable housing that is equivalent to at least 40% of the bedrooms or units being affordable. On-site delivery of affordable housing can be provided if both the Council(s) and the University agree that this is appropriate. 

10. An affordable housing contribution will not be sought where the proposed development is: 

  a. within an existing university or college campus site, or 

  b. for the redevelopment of existing purpose-built student accommodation owned by a university or college, and which will continue to be owned by a university or college after the redevelopment to provide student accommodation to meet its needs.

Cambridge and South Cambridgeshire have been identified by the Government as areas of high affordability pressure and our evidence shows that there is an acute need for affordable housing in

The combined areas of Cambridge District and South Cambridgeshire District Councils.

. The policy therefore seeks to maximise the supply of new affordable housing by requiring affordable housing on all major developments for housing that are providing self-contained dwellings, irrespective of their use class. Major developments for housing that are specifically for retirement living or other forms of specialist accommodation, Build to Rent, and Houses in Multiple Occupation, will therefore be expected to contribute towards the delivery of affordable housing. 

The policy also requires affordable units to be provided within

Large scale purpose built and managed residential accommodation, often comprising self- contained studios, with extensive communal facilities.

developments. Although these developments are not providing self-contained dwellings, they are contributing towards meeting our overall housing requirement and it is therefore important that they also contribute towards meeting

The combined areas of Cambridge District and South Cambridgeshire District Councils.

’s affordable housing need. As they are likely to be delivered as a form of Build to Rent, it is appropriate to seek the affordable units on-site and that they are provided following the same principles as Affordable Private Rent homes. 

Where student accommodation is delivered within an existing university or college campus, the policy exempts such development from contributing towards affordable housing, as other types of housing would not normally be delivered in these locations. However, student accommodation brought forward on other off-campus sites could equally be suitable for other types of housing, therefore it is important that such developments are required to contribute towards meeting our affordable housing need. This would also apply where an existing university or college campus is redeveloped for other types of housing. Recognising that the provision of affordable housing on-site within a development for student accommodation is unlikely to be achievable due to management issues, a financial contribution would be sought that is comparable to the on-site delivery of affordable housing within other residential schemes. 

The thresholds at which affordable housing must be provided on any

Large scale purpose built and managed residential accommodation, often comprising self- contained studios, with extensive communal facilities.

or student accommodation developments are in line with national planning policy, which allows for affordable housing to be sought on any major developments for housing i.e. 10 or more dwellings. The number of

Large scale purpose built and managed residential accommodation, often comprising self- contained studios, with extensive communal facilities.

units and student bedrooms should be converted to a dwelling equivalent using the ratio for either other communal accommodation or student accommodation set out within the Housing Delivery Test rulebook. This is currently 1.9 units to one dwelling for other communal accommodation (which will be used for

Large scale purpose built and managed residential accommodation, often comprising self- contained studios, with extensive communal facilities.

developments) and 2.4 bedrooms to one dwelling for student accommodation. 

As set out in national planning policy and guidance, vacant buildings credit will apply to any major developments for housing on land outside of the

A statutory designation made for the purposes of checking the unrestricted sprawl of large built-up areas, preventing neighbouring towns from merging into each other, assisting in safeguarding the countryside from encroachment, preserving the setting and special character of historic towns and assisting in urban regeneration by encouraging the recycling of derelict and other urban land. Specific Green Belt purposes have been set out for Cambridge.

but will not apply to any major developments for housing on land within the

A statutory designation made for the purposes of checking the unrestricted sprawl of large built-up areas, preventing neighbouring towns from merging into each other, assisting in safeguarding the countryside from encroachment, preserving the setting and special character of historic towns and assisting in urban regeneration by encouraging the recycling of derelict and other urban land. Specific Green Belt purposes have been set out for Cambridge.

. 

New affordable housing for sale or rent will be limited to those whose needs are not met by market housing, and taking account of the criteria set out in national planning policy for each of the different tenures of affordable housing. The majority of the identified need is for rented affordable housing, rather than affordable home ownership, and therefore it is important that the Councils prioritise the delivery of affordable housing for rent. The provision of genuinely affordable housing is also a priority for both Councils. The policy therefore seeks to secure an affordable housing tenure mix that will meet a wide range of housing needs and create mixed and balanced communities, providing for different types of households and household incomes. 

The specific requirements in terms of price caps and discounts for

First Homes are a specific kind of discounted market sale housing and should be considered to meet the definition of ‘affordable housing’ for planning purposes. Specifically, First Homes are discounted market sale units which:

a) must be discounted by a minimum of 30% against the market value;

b) are sold to a person or persons meeting the First Homes eligibility criteria;

c) on their first sale, will have a restriction registered on the title at HM Land Registry to ensure this discount (as a percentage of current market value) and certain other restrictions are passed on at each subsequent title transfer; and,

d) after the discount has been applied, the first sale must be at a price no higher than £250,000.

, which are an affordable home ownership tenure, mean that they are unlikely to be a suitable affordable housing tenure on the majority of new developments in

The combined areas of Cambridge District and South Cambridgeshire District Councils.

. 

Viability will be considered as set out in national planning policy and guidance, and in accordance with Policy I/ID:

Includes transport, energy, water, waste, digital/smart, social and green infrastructure.

and Delivery. 

To align with the Councils’ Lettings Policies and Local Housing Allowance criteria, minimum bedspaces are set out for different numbers of bedrooms to accommodate different family compositions and to enable occupancy to be maximised. 

Local Lettings Plans will be required for affordable rented and social rented homes where necessary to achieve mixed and balanced communities and/or to prioritise affordable housing for local workers or for specific groups of people. The

Local Lettings Plans set out the criteria for allocating and letting Social Rent and Affordable Rent homes within a development to help create balanced, mixed and sustainable communities. For a rural exception site scheme, Local Lettings Plans are used to ensure that priority is given to those with a local village connection.

must be agreed by the Housing Team(s) at the Council(s) and will be published on their websites. 

The

The combined areas of Cambridge District and South Cambridgeshire District Councils.

Housing Strategy sets out the Councils’ priorities to tackle the housing challenges facing the area and is a material consideration in any planning decisions. The current

The combined areas of Cambridge District and South Cambridgeshire District Councils.

Housing Strategy covers 2024-2029. 

• The combined areas of Cambridge District and South Cambridgeshire District Councils.

  A plan for the future development of a local area, drawn up by the local planning authority in consultation with the community. In law this is described as the development plan documents adopted under the Planning and Compulsory Purchase Act 2004. A local plan can consist of either strategic or non-strategic policies, or a combination of the two.

  : Homes Topic Paper (2025)

• The combined areas of Cambridge District and South Cambridgeshire District Councils.

  Housing Strategy 2024-2029: Homes for Our Future and Annexes 1-8
• Housing Needs of Specific Groups in Cambridge and South Cambirdgeshire (2025)

We will consider all comments while developing the next version of the

A plan for the future development of a local area, drawn up by the local planning authority in consultation with the community. In law this is described as the development plan documents adopted under the Planning and Compulsory Purchase Act 2004. A local plan can consist of either strategic or non-strategic policies, or a combination of the two.

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All comments must be received by 30 January 2026 at 5pm.