Glossary definition
Affordable Housing
Housing provided at below market rates to eligible households, including social rent, affordable rent, shared ownership, and First Homes, as defined by Annex 2 of the NPPF. Local planning authorities typically require 20-50% affordable housing provision on developments above a threshold of 10 units, though this can be reduced through a viability assessment.
Definition
Housing provided at below market rates to eligible households, including social rent, affordable rent, shared ownership, and First Homes, as defined by Annex 2 of the NPPF. Local planning authorities typically require 20-50% affordable housing provision on developments above a threshold of 10 units, though this can be reduced through a viability assessment. Affordable housing obligations are a key cost in the development appraisal and can significantly affect scheme profitability and the amount of debt a lender will advance.
See also
Closely related terms.
Viability Assessment
A financial appraisal submitted to the local planning authority to demonstrate that a development scheme cannot viably deliver the full policy requirements for affordable housing, S106 contributions, or CIL.
S106 (Section 106 Agreement)
A legally binding obligation negotiated between a developer and the local planning authority as part of a planning permission, requiring the developer to provide or fund specific community benefits such as affordable housing, public open space, or highway improvements.
Planning Permission
Formal consent from the local planning authority required before carrying out most types of development, including new construction, material changes of use, and significant alterations to existing buildings.
Gross Development Value
The total market value of a development upon completion, encompassing all units and any commercial elements.
Further reading
Guides that touch this term.
Guide
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 min read readReadGuide
The Capital Stack in Property Development: How to Structure Your Funding
A comprehensive guide to understanding and structuring the capital stack in UK property development, from senior debt through mezzanine to equity contributions.
9 min read readReadGuide
Legal Due Diligence in Development Finance: What Solicitors Check
Legal due diligence is the backbone of every development finance transaction. This guide explains what solicitors investigate, common issues that delay completions, and how to prepare your legal pack.
9 min read readRead
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