Here’s where the system breaks down:
1. “Affordable” is not affordable
- In expensive places, 80% of market rent is still wildly unaffordable.
- Shared ownership or discounted homes can cost more per month than renting privately.
📍 Example: In parts of Hampshire or Surrey, “affordable rent” might still be £900–£1,100/month — out of reach for many people on ordinary wages.
2. Developers can wriggle out of providing it
- If a developer says providing 40% affordable housing will make a site “unviable”, councils are legally required to consider that.
- These “viability assessments” are often not made public, and developers overestimate costs to reduce their obligations.
📉 Result: Councils often approve developments with only 10%–20% affordable housing, even when the Local Plan says 40%.
3. Affordable housing can be sold off
- Some affordable homes (especially shared ownership) are later converted to market housing.
- There’s no strong legal guarantee that affordable homes stay affordable forever — especially for First Homes or Shared Ownership.
4. Definition includes expensive ‘starter homes’
- Because the legal definition includes “discounted market homes” and First Homes, very expensive properties still count as “affordable”.
- These homes often go to middle-class buyers, not people in genuine housing need.
5. Not enough social rent
- The most urgently needed homes — true social rent — are rarely delivered.
- Developers prefer shared ownership or First Homes because they’re more profitable.
- Councils don’t have enough funding or land to build them directly.
6. Enforcement is weak
- Even when developers agree to provide affordable housing, there’s poor monitoring of delivery and occupancy.
- Councils may not have staff to enforce the long-term conditions.
Summary Table: Weaknesses in the System
| Issue | Why it’s a problem |
|---|---|
| “Affordable” still means expensive | 80% of market rent is too much in most areas |
| Developers use viability excuses | Reduces affordable housing below target |
| No long-term affordability | Shared ownership and First Homes can be resold at market |
| Definition too broad | Includes homes unaffordable to many in need |
| Social rent underdelivered | Least profitable = least built |
| Weak enforcement | Promises made at planning stage often go unchecked |