Unfortunately it’s not that simple – the definition of affordable housing doesn’t directly relate to build cost or cost per square metre. It tends to be based on sales or rental rates that are at least 20% below local market value, therefore a full assessment of a project needs to be carried out to work out the upper limit of the build cost.
The cost per square metre for our homes will depend on the scale of the project, the type of homes, the specification and the location. We can build for around £1,350 per square metre, which could be affordable. The land price is often the deciding factor.
What we’re also challenging though is how our designs and enhanced specification can make housing more affordable AND sustainable. We’re looking at the long-term benefits such as low-energy costs, low maintenance and health & wellbeing. We’re also focused on building true communities.
The definition of Affordable housing can be found in Annex 2 (page 64) of MHCLG’s National Planning Policy Framework.
It’s useful to note that some Local Authorities are developing their own definitions for Affordable Housing, such as Manchester City Council, as part of their Housing Strategy: