Bristol City Council to allow developers to renegotiate affordable housing to combat viability pressures

Costs have been compounded by the nature of constrained brownfield sites in Bristol, while viability has been challenged by a housing market where values have stagnated.

Sites, whether on privately owned or council-owned land, will have to meet a set criteria for their level of affordable housing subsidy to be reconsidered.

They will have to be located within the city centre zone with full planning permission, and subject to a Section 106 agreement requiring the provision of subsidy-free affordable housing delivery for social rent or shared ownership.

Planning permission outside of the city centre zone may be considered as an exception where the developer is also promoting additional funded delivery of affordable housing with a registered provider, resulting in more affordable housing than it had secured at the planning permission stage.

A Section 73 application will be required to amend the original consent. The council will then assess the viability appraisal submitted with the Section 73 application, and the applicant will be required to meet the costs.

If this results in a revised level of subsidy-free affordable housing, a new Section 106 agreement will be required.

Where subsidy is granted, the registered provider partner will have to be included in finalising the Section 106 agreement.

In cases where not enough subsidy-free affordable housing can be provided because of viability, and subsidy will need to be introduced, the design and internal layout of the scheme may have to be amended, including reducing the height of the building or its number of homes.

The council cited housing secretary Steve Reed, who has committed to implementing a new route to vary planning permissions through Section 73.

Bristol City Council’s policy change will run until a full update of its practice note is published.

Last year, the council committed to working with developers and registered providers to maximise housebuilding in its interim affordable housing delivery plan.

Andrew Brown, chair of the Economy and Skills Committee, said: “Bristol City Council recognises the importance of our planning policy framework when it comes to ensuring developers are meeting their requirements around affordable housing delivery.

“However, where costs are starting to stall sites or prevent us from building the maximum number of homes achievable we want to take a pragmatic view of the balance between subsidy-free and grant-funded affordable homes, recognising the challenges for developers in the city around viability.

“The viability addendum to the council’s Affordable Housing Practice Note gives us the scope to do this.”

Last month, Unite Students revealed in a trading update that it had delayed a student accommodation scheme in Bristol while it explores options to secure best value from the project.

In December, a Malaysian developer secured a loan to build a 1,514-bed purpose-built student accommodation scheme in Bristol. The scheme will comprise 1,514 beds across four blocks, with completion targeted for autumn 2027.