Further to WAQ79294, will the Minister confirm whether the Welsh Government has a definition of what it considers to be an 'affordable home' in financial terms?
The definition of ‘affordable housing’ for planning purposes is housing where there are secure mechanisms in place, on first occupation and for subsequent occupiers, to ensure that it is accessible to those who cannot afford market housing. The ability of households to afford market housing varies between housing market areas.
Technical Advice Note (TAN) 2: Planning and affordable Housing provides advice to local authorities on how to determine “affordability”, which is defined as the ability of households or potential households to purchase or rent property that satisfies the needs of the household without subsidy. Affordability can be based on an assessment of the ratio of household income or earnings to the price of property to buy or rent available in the open market in the local housing market area.
Local authorities should calculate “affordability” for each of the housing markets that may be operating in their area (and those of neighbouring authorities, if appropriate). This information can form part of the evidence used to calculate the amount and type of affordable housing required.