Affordable Housing & Specialist Housing Supporting Paper

Affordable Housing & Specialist Housing Supporting Paper

LEEDS LOCAL PLAN (2024 to 2042)

Affordable Housing & Specialist Housing Supporting Paper

Regulation 18 Consultation

June 2025

Why is more affordable housing needed in Leeds?

There are a number of factors to be considered in why affordable housing is needed and why therefore, the Leeds Local Plan (LLP) should include strong, robust affordable housing policies.

Importance of having a home

Having a safe, warm, affordable place to live is a crucial factor in achieving a positive, healthy, fulfilling and successful life.  Crisis[1] recognises it can help to boost educational achievement, reduce unemployment, improve health and wellbeing and benefit society as a whole whilst a House of Commons research briefing[2] – “The role of homes and buildings in levelling up health and wellbeing” (October 2022) highlights the link between housing and health.  

The National Housing Federation’s webpage[3] containing their report “Why we need a long-term plan for housing” (June 2023) states: 

“Decent homes that people can afford are the foundations for a good life and strong economy.”

“A decent, affordable home is as essential as having clean air to breathe, and should be a right for us all, wherever we live across the country. It is the foundation of our health, happiness and prosperity.”

“Housing also plays a critical role in a strong national and local economy. Having good housing that people can afford close to work, education and local services acts as a springboard for thriving communities.”

In 2023, the Council committed to be a Marmot Place and partnered with the Institute of Health Equity led by Professor Sir Michael Marmot to instigate bold measures to improve health across the city and address inequalities. Housing is a significant social determinate of health and was a particular focus for Leeds in 2023/24.  The first yearly review “Fairer, Healthier Leeds: Reducing Health Inequalities” (IHE, 2024)[4] sets out 17 recommendations related to housing.

Cost of living

Inflation hit a 41 year high of 11.1% in October 2022 and remained above the Bank of England’s target of 2.0% until May 2024.  This contributed to considerably higher prices for items such as food, energy and fuel as well as higher interest rates which increased the cost of borrowing.   Food prices rose by 30.6% between May 2021 and May 2024.  Russia’s invasion of Ukraine increased gas prices to record levels in 2022.  Low income households were most affected by increased prices as they are more affected by high food and energy prices. [5]  Even though inflation has dropped, the cumulative effect of rising prices means households are still facing a much higher cost of living than in 2021. Households that were struggling before the period of high inflation have been most severely affected.[6]

Affordability issues

The English Household Survey provides national level information in relation to housing in terms of housing quality and condition, energy efficiency, demographics and household resilience.  It looks at housing costs and assesses affordability in the context of the cost of living. The affordability and cost of living fact sheet (2022 – 2023)[7] and chapter 2 of the headline findings on demographics and household resilience (English Housing Survey 2023 – 2024)[8] contain useful high level information.   The ONS reported that across England between 1997 and 2024, earnings doubled whilst house prices quadrupled[9].

The West Yorkshire Housing Strategy (2024) ^[10] highlights some of the affordability issues in the broader private rented sector noting that “nearly 40% of households living in the private rented sector cannot afford current average monthly rent costs in West Yorkshire, and affordability has decreased by 10% over the last four years. This means that if rent increases continue to significantly outpace wage increases, affordability will continue to decline rapidly.” (page 36).

At a more local level, the Leeds Strategic Housing Market Assessment (2025)(SHMA) shows that the median and lower quartile house prices across Leeds have consistently been higher than other West Yorkshire authorities and the wider Yorkshire and The Humber area.  Overall, median prices have increased from £64,000 in 2000 to £225,000 in 2024, an increase of +251.6%, whilst lower quartile prices have increased from £44,995 in 2000 to £162,500 in 2024, an increase of +261.2%.  Similarly lower quartile and median rents across Leeds were higher than the Yorkshire and The Humber area in 2010 and 2024.  Over this time, lower quartile rents across Leeds increased from £472 to £893, an increase of +89.2% and median rents increased from £559 to £1,148, an increase of +105.4%.

In addition, the need for Temporary Accommodation in Leeds has increased by over 200% in the last 2 years due to affordability pressure and the lack of affordable housing.

Affordability ratio

There is no universally accepted affordability rate between earnings and house prices.  The ONS considers homes bought for less than 5 times earnings on average to be affordable whereas the SHMA uses an affordability ratio of 3.5 times gross household incomes.  Affordability ratio figures for Leeds from the ONS indicate median house prices were 6.4 times median earnings in 2024[11].  Again, there is no official guidance on what rent is considered affordable though the rule of thumb is generally around 30% of gross household income.  The SHMA sets the affordable monthly rent at 25% of gross household income (approximately 35% of net income) though it does consider the effect of increasing this to 30% on the affordable housing need figure.

Cost of housing compared to incomes

Table 3.9 of the SHMA sets out the cost of a range of tenures by sub-area and overall for Leeds in 2024 and Table 3.10 shows the household income required for each tenure to be affordable (based on 25% of household income for rents and 3.5 times income for buying).  

Bearing in mind that the living wage is in the region of £22,000 and the lower quartile and median income in Leeds are £22,760 and £31,450 respectively (Annual Survey of Hours and Earnings, Table 8.7a (gross annual pay, all workers), ONS, provisional estimate 2024), this indicates how unaffordable many tenures are to many people.   The need for a deposit adds additional challenges on many sale options.

Figure 3.2 sets incomes and deposits required for different tenures against 1.5x and 2x the full-time living wage and shows the relative affordability of alternative tenures across the city.  It shows that for households on 1.5x living wage, affordable options include social rent and some affordable home ownership options. For households in 2x full-time living wage, lower quartile market housing to rent or buy is affordable along with most affordable home ownership products though this is reliant on securing the necessary deposit which may be challenging or even prevent people from affording these types of accommodation.

What is genuinely affordable?

The SHMA also looks at actual household incomes and how they related to market prices and rents to gauge how affordable different tenures are and what would be truly affordable prices and rents.

Lower quartile rents in 2024 were unaffordable to anyone within Leeds on the monthly living wage of £1,859 (Table 3.12) with rents taking at least 38.9% of monthly income.   They were also unaffordable to any household on 1.5 times the living wage, though in all areas of the city, except the City Centre, lower quartile rents would take between 25% and 35% of incomes.  Median rents in 2024were affordable to households on 2 times the living wage in Inner South, Outer East, Outer South and Outer West areas and all other areas except Inner North West required between 25% and 35% of incomes.  This indicates that to afford lower quartile rents, tenants would need to earn more than 1.5 times the living wage or be willing to pay more than 25% of their gross household income.  In many areas this would need to be up to 31%. To afford median rents, tenants would need to earn at least approximately 2 times the living wage and in many areas be willing to pay more than 25% of their gross household income.  This shows those on the lowest incomes are struggling to afford rents, even those at the lowest 25%.  Those earning twice the living wage are finding median rents unaffordable in many areas as they would need to spend more than 25% of their gross household income.   In many areas this would need to be up to 31%.

Lower quartile house prices in 2024 were unaffordable to anyone within Leeds on the annual living wage of £22,308 (Table 3.13). Households on 1.5 times the living wage could afford lower quartile house prices in the Inner East and Inner South areas whilst the Inner North East, Outer North East and Outer North West areas required more than 5 times this income and the other areas across the city required between 3.5 and 5 times this income.  Median house prices in 2024 were affordable to households on 2 times the living wage in the Inner East and Inner South areas whilst the Outer and Inner North West and Outer and Inner North East areas required more than 5 times this income and the other areas between 3.5 and 5 times this income. This indicates that to afford lower quartile housing, buyers would need to earn at least approximately 1.5 times the living wage and in many areas be willing to pay more than 3.5 times their gross household income.  To afford median housing, buyers would need to earn at least approximately 2 times the living wage and in many areas be willing to pay more than 3.5 times their gross household income.  This shows those on the lowest incomes are struggling to afford homes, even those at the cheapest 25%.  Those earning more (twice the living wage) are finding median priced homes unaffordable in many areas as they would need to spend more than 3.5 times their gross household income to afford such a home.

Table 3.16 from the SHMA 2025 sets out what rents and prices would be affordable to those on 1.5x and 2x the living wage.  For rents they vary from a lower quartile rent of £465 per month for someone on the living wage to a median rent of £930 for 2x the living wage.  For purchase prices they vary from a lower quartile purchase price of 78,078 for someone on the living wage to a median purchase price of £156,156 for 2x the living wage.

For those on Local Housing Allowance, affording even the lower quartile rents is challenging.  The indicative LHA rates for Leeds for the financial year 2024 to 2025 are set out below and show, for example, the lower quartile rent of £465 set out above would take 69% of the average monthly LHA for a 1 bed home.

It is clear that truly affordable housing must be a priority for the LLP and that social rented accommodation is critical in supporting those in most need.  This is reflected in the SHMA’s recommended proportion of 53% social rented and its emphasis that priority should be given to social rented homes.   It also conforms with the greater emphasis on social rented in the recently updated NPPF 2025 and the current target of 60% in Core Strategy Policy H5.  Nevertheless, the Glossary to the NPPF gives details of Affordable Rent and Affordable Private Rent at at least 20% below local market rents (including service charges where applicable).  Affordable rent has become increasingly popular over recent years as illustrated in Table H10 in para 1.21 below.

The Council and RPs do provide homes at affordable rent but the construction of large numbers of built to rent schemes especially in the City Centre and inner areas has contributed to this increase significantly.  Build to Rent schemes have a role to play in meeting the need for affordable housing as they increase supply, provide greater tenure choice, longer term leases and often more facilities and services such as gyms, cinemas, a concierge and social and work spaces.  Nevertheless, 80% of private market rents can be high in high market areas such as the City Centre and therefore unaffordable to many in housing need, especially those on lower incomes.  Core Strategy Policy H5 does give the option for a 60%:40% split between social rents and higher affordable rents after applying the relevant target % set out in the first half of the policy however, to date, many BtR developments have opted for 20% of the total units, rented out at 80% of market rents.

Affordable housing delivery in Leeds has not kept up with the level of need

The completion of overall housing has fluctuated somewhat over the last few years above and below the Core Strategy target figure of 3,247 dwellings per year.  Table H3 in the latest Authority Monitoring Report (1^st April 2023 – 31^st March 2024) show this and that 2023/24 saw a considerable increase to 4,441 dwellings, 1,194 units over the target figure.   As context, Chart H5 shows long-standing year-on-year increase in the number of homes with planning permission though the correspondingly low numbers of homes complete each year.  Securing planning permission is clearly not an issue, rather it is permissions being implemented and homes being completed.   In 2024, the 4,441 dwellings completed were only 12.8% of the 34,699 units with extant planning permission.

The number of affordable houses completed has not met the level of need for many years.  Para 5.2.13 of the current Core Strategy 2019 states that there is an annual need for 1,230 affordable homes (based the SHMA 2017) but the table below from the Authority Monitoring Report 2023/24[12] shows completions have fallen way below this figure and have managed to reach half of those needed only in the last couple of years, despite Leeds delivering more affordable homes than any other Core City over the last 5 years.

Table C9 of the updated Leeds SHMA 2025 shows that the net shortfall or need for affordable housing across Leeds from 2024 to 2042 is 3,282 new affordable homes per year (based on a 10 year clearance of backlog and no more than 25% of household income should be spent on rent), a 166.8% increase on the 2017 figure.  This is mainly a result of a dramatic increase in private rental costs across Leeds, with lower quartile prices increasing by 23.3% over 2022 – 2024 which means fewer households in need can afford private rented.  Table C11 of the updated Leeds SHMA 2025 shows what happens if the limit of household income that is spent on rent is increased to 30%.  The net shortfall or need for affordable housing across Leeds from 2024 to 2042 falls to 1,518 new affordable homes per year (based on a 10 year clearance of backlog), a 23.4% increase on the 2017 figure.  The mid-point of need between 25% and 30% incomes is 2,400 per annum.  Tables C9 and C11 also break this need down by sub-area though it must be emphasised that a negative number does not mean there is no need for affordable housing. Approximately 30% f the gross affordable housing need across the city is from households where the reference person is aged 65 or over.

The Leeds Homes Register is also a useful indication of affordability challenges faced by households (especially those on lower incomes) and the level of need across Leeds.  Between 2020/21 and 2023/24, the number of households on the housing register increased from 19,838 to 21,202, representing an increase of 6.9%.

There are currently around 26,000 individuals applying for affordable housing through the Leeds Homes Register (LHR) which captures demand across the city and prioritises applicants.  The number of residents with the greatest housing needs (Band A/A+) has increased significantly over the last few years creating a catalyst for the Council Housing Growth Programme and further pressure on delivery.  The Leeds Homes Register Demand Report Q4 2024/25 shows that 142 (1%) applicants are in Band A+ and 5709 (21%) are in Band A.  Most applicants (17505 (63%)) are in Band C.  The time taken to rehouse applicants has grown due to the increased pressure of demand and the constrained supply, which has been compounded by losses of social rented homes from Council stock through tenants exercising their Right to Buy.

The LLP will therefore need to consider this significant need in the context of likely delivery as a proportion of mixed market and affordable housing developments and what opportunities there are for securing developments with high proportions of affordable housing.  It will need to set targets and tenure splits and support the ongoing delivery and diversification of affordable housing to meet local needs, although it must be recognised that new affordable supply alone is unlikely to meet affordable need in full.

The need for a range of types, sizes and tenures of affordable housing

There is a wide range of people needing affordable housing, in different circumstances, with different incomes and needing different types and sizes of homes.  Therefore, planning policy needs to help secure a range of affordable accommodation.  This means ensuring homes are of the right size, type, (including bespoke and specialist accommodation) affordability (across different affordable tenures), and in the right places in line with the local need and the spatial strategy of the LLP. This, in turn, supports the achievement of genuinely mixed and inclusive communities and allows all residents of Leeds to benefit from growth and to prosper.

The SHMA identifies the need to prioritise homes for rent (especially social rent) and therefore recommends that policy should seek a tenure split of 80% rented (53% social rent, 27% affordable rent) and 20% affordable home ownership (including First Homes).  The confirmation in the updated NPPF that the requirement to deliver a minimum of 25% of affordable housing as First Homes no longer applies fits well with this proposed local tenure split.

The Leeds Homes Report Q4 2024/25 shows the average number of bids per property based on the most recent four quarters of choice-based lettings advertising by the Council and partner Registered Providers broken down by property type and number of bedrooms by Ward.  The split of the overall numbers across the city are shown below.      

Table C12 of the SHMA 2025 shows a greatest need for 1 bed homes from those on the Housing Register with the lowest number of bids for 4+ bed homes.

The 2023 household survey undertaken as part of the SHMA looked at the number of bedrooms needed by households in affordable need and dwelling type aspirations and expectations which is shown in Table C15.  This suggests a more varied mix of need than that indicated by bids on the housing register.   Table 5.2 recommends annual dwelling type/size and tenure mixes for market, affordable rented and affordable home ownership homes as well as an overall mix.  These are expressed as ranges and broken down over unit size and type.  The table provides a detailed, valuable, locally specific mix on which policy can be based.

What is affordable housing policy in Leeds seeking to achieve and how?

The Leeds Affordable Housing Growth Partnership Action Plan[13] 2022 to 2025 acknowledges that “the challenge of affordable housing supply requires a multi-partner approach, with the tools and responsibilities sitting with a range of organisations who can provide an aligned response in the city.” However, it recognises that “Planning Policy has a crucial role to play in setting an enabling regulatory and delivery environment for affordable housing delivery, reflecting local housing needs and national planning legislation. There are several levers that can be pulled within planning policy to change how we deliver affordable housing and respond to needs.”

The LLP therefore needs to be ambitious, creative and robust whilst being grounded in the realities of the current macro-economic and financial situation.  It must be remembered that the LLP is not expected to deliver enough affordable homes to meet need but the degree to which delivery falls short of need indicates the need for updated affordable housing policy.

Affordable housing policy needs to set clear, justified expectations and requirements for affordable housing delivery in terms of how much, what, where, how and who.  It must also work in the ever-changing realities of the economic, financial, social and environmental systems and under the fundamental premise that development has to be profitable (with some exceptions).  It therefore needs to have flexibility whilst not losing its primary focus of increasing the number of affordable homes built to meet an increased need.  This can be done through planning obligations however financial viability puts limits on the numbers that can be achieved.  To date only about one third of affordable housing delivered each year in Leeds has been via this method.  Other methods and opportunities must also be utilised, and planning policies must play their role in facilitating this.  RPs have built the largest proportion of affordable housing in Leeds and buy many of the affordable homes built by other developers.  The Council works very closely with RPs and sometimes help to fund affordable homes along with other funders such as Homes England.

The report “Leeds Local Plan: A Planning Framework for Development (2024 to 2042)” that went to Development Plans Panel on 13^th May 2024 sets out 36 objectives for the LLP overall.  Objective 2 covers affordable housing

Deliver significantly more affordable houses in all communities at a level of affordability that meets local needs, taking advantage of a variety of delivery mechanisms and site attributes, including land value capture from Green Belt sites where suitable.

This can be broken down into 4 key elements:

• To increase the number of affordable homes completed in Leeds
• To provide a variety of affordable accommodation in terms of tenure (especially social rented), type and size to help meet identified need
• To remove obstacles and positively support the delivery of affordable housing by a range of providers (RPs, general housebuilders, Council, Build to Rent developers, community enterprises etc)
• To allocate land for the development of affordable housing in a range of locations to meet need and to utilise opportunities such as funding, regeneration initiatives, land availability, and a variety of delivery routes/partners.

These can be broken down further into a series of key actions which the Council could pursue to help ensure affordable housing policy achieves the objective above.  These are only possibilities at this stage; some will contradict others and proposed wider strategies for the LLP and therefore are likely to be discounted in due course.

Maximising numbers

• Be more responsive to differing markets and levels of viability (in terms of location of sites, brownfield/greenfield etc) which could lead to a more fine-grained and nuanced approach to affordable housing zones and targets
• Change the focus for development from areas where affordable housing requirements are low (city centre and inner areas) to areas where requirements are high (outer areas)
• Locate development where viability allows higher numbers of affordable homes.
• Increase the proportion of affordable housing in areas which qualify for grant funding.
• Revisit the balance of planning gains sought through Section 106 for a variety of objectives including greenspace, education, flood risk and transport improvements to understand the implications of prioritising affordable housing delivery as part of that mix.
• Maximise affordable housing delivery on brownfield land, sites in sustainable locations and locations that will contribute to the creation and improvement of compact, complete, connected communities and neighbourhoods
• Maximise land value capture from non-Green Belt greenfield sites, such as Safeguarded Land by, for example, setting expectations of at least 50% affordable housing unless this would make the development unviable.
• Maximise land value capture from sites released from the Green Belt or where major development is permitted within the Green Belt in line with the Government's “Golden Rules” by, for example, setting expectations of at least 50% affordable housing unless this would make the development unviable.
• Allocate sites for 100% (or very high levels) affordable housing.  These could be released from the Green Belt and subject to the Golden Rules.
• Allocate a proportion of sites in all sub-areas for 100% affordable housing to ensure that registered providers can engage in the market for land
• Ensure affordable units built are up to RP standards in terms of build quality, fixtures and fitting, energy efficiency etc to increase the likelihood of RPs being willing to buy them. This could involve exploring an affordable housing standard.
• Provide land rather than affordable homes as part of a s106 which could be built out by RPs subject to securing grants from Homes England.

Meeting need

• Adopt a stronger needs-based approach
• Ensure the needs of all communities across Leeds are met in terms of numbers, quality and choice, including bespoke and specialist needs and supporting the commissioning of services that the Council provides
• Introduce specific requirements for affordable provision as part of specialist housing schemes such as older persons housing, purpose-built student accommodation, self-build and extra care

Area based approaches

• Utilise opportunities in priority neighbourhoods, local centres and regeneration areas such as the Leeds Transformational Regeneration area[14]. This includes opportunities for the conversion of underutilised assets to affordable homes.
• Revisit the approach taken in areas where development is predominantly high rise and high density (especially the city centre and inner areas) such as in the Leeds Transformational Regeneration Area, as affordable housing delivery is not always being optimised due to changes in market delivery models (i.e. Build to Rent and s106 flexibilities), service charges and affordability challenges

Viability

• Review / amend the benchmark transfer prices of homes to Registered Providers to make their delivery more viable for developers and more market aligned
• Assess viability post-permission to ensure that any uplift in viability can be used to clawback lost affordable housing, especially for Build to Rent developments where viability is more challenging and unpredictable.
• Ensure policy does not restrict the availability of land, the utilisation of funding and financing tools, and partnership working that enable affordable housing delivery, especially in these challenging economic times
• Continue premise of Commuted Sums payments in lieu of affordable housing on site as a last resort, with fees applicable to manage programme management & delivery. 

It is made clear in national planning guidance that “Under no circumstances will the price paid for land be a relevant justification for failing to accord with relevant policies in the plan.” Viability - GOV.UK

Affordability

• Investigate the possibility of introducing a “Leeds Living Rent” , a concept that is already being implemented in London[15] and Manchester[16].   This could establish a rent between social rent and affordable rent at 80% of market rent which is specifically based on Leeds incomes, rents and needs.
• Seek more than 20% discount on affordable rent in Build to Rent developments as viability allows in line with the NPPF which allows “at least 20% below local market rents (including service charges where applicable)”.
• Consider whether flexibility between the number of affordable private rent units and the discount offered on them is desirable

Tenure Mix

• Seek a tenure mix of new affordable homes at 53% social rented homes, 27% affordable rented, 20% affordable home ownership for all major housing development (except build for rent) as recommended in the SHMA.
• Identify areas to prioritise social rent e.g. where there is particular need due to high rents/house prices.
• Consider how best the benefits of affordable private rented homes can be realised for those in need e.g. longer tenancies, onsite management, Council nomination rights

Size/type Mix

• Set a more specific mix for affordable dwellings in line with Table 5.2 and/or the sub-area breakdowns (Table D6) set out in the SHMA which considers the under occupancy charge (bedroom tax) and allocations policy.

Location within a site

• Continue to seek the distribution and integration (pepper-potting) of affordable homes across developments.
• Subject to detailed justification, allow a greater degree of concentration of affordable units in higher density, high rise developments where this will fit better with management and maintenance practices.

Nominations

• Refresh the approach to the nominations process, the role of the Leeds Affordable Housing Framework (as the Council’s preferred RP providers) and the requirement for a Local Lettings Plan for Build to Rent developments to maximise nominations from the Leeds Homes Register which will help to meet prioritised demand and support the provision of specialist and bespoke housing to meet wider housing needs in the city.

How will affordable housing policy within LLP help deliver the Council's corporate and housing-related strategies and action plans?

Leeds City Council

Best City Ambition

The Council’s overall mission as set out in the Best City Ambition is to tackle poverty and inequality and improve quality of life for everyone who calls Leeds home[17]  The 3 pillars of this ambition are Health and Wellbeing, Inclusive Growth and Zero Carbon.

The key actions related to affordable housing are:

• working with housing providers, landlords, tenants and communities to provide more affordable and better quality housing, so everyone can have a home which supports good health, wellbeing and educational outcomes; and
• making the homes we live in and the buildings we use healthier, more environmentally friendly and cheaper to run, helping to tackle fuel poverty and supporting the switch to renewable sources of energy across Leeds.

Affordable housing policy will support these pillars in terms of

• seeking good quality, affordable housing to meet the needs of various sectors of the population which will help to support good mental and physical health, connected and sustainable communities
• delivering more affordable homes of the right type and location, utilising investment to tackle poverty, supporting economic recovery and regeneration through housing and helping to make people more able to work.
• seeking sustainable, high quality affordable homes that will be energy efficient and cheaper to run.

Leeds Housing Strategy 2022 to 2027[18]

The overall housing vision is “Meeting the city’s housing needs and providing high quality affordable homes in thriving and inclusive communities, with appropriate support for those who need it.”  The overarching priorities are encapsulated in the 3 pillars above, alongside engagement and consultation with partners across the city and citizens.  Affordable housing policy in the LLP will help to achieve the 6 key themes: of meeting affordable housing need, improving housing quality, reducing homelessness and rough sleeping, thriving and inclusive communities, improving health through housing and child and age friendly housing.

Leeds Affordable Housing Growth Partnership Action Plan 2022 – 2025[19]

This is a joint action plan produced and supported by the Council and the RPs on the Leeds Affordable Housing Framework.  It recognises the challenges faced by many to having a safe, warm and affordable home; the high levels of need across the city for a variety of affordable homes; the need to deliver more; the challenges faced by the affordable housing sector in terms of land availability and values, carbon neutral homes, affordable housing policy, and viability and funding; the important role RPs play; and the benefits of a partnership approach which brings together key players, tools and responsibilities.

Affordable housing policy is recognised as one of the challenges to delivery by RPs.  The Council will continue to work closely with RPs throughout the development of LLP2042 and be guided by their wealth of knowledge and experience to update policy in a way that will help them to increase delivery whilst meeting other policy requirements and delivering sustainable development.

Leeds Transformational Regeneration [20]

A vision for Leeds was launched in March 2024, setting out a focus on revitalising the six neighbourhoods of Mabgate, Eastside & Hunslet Riverside, South Bank, Holbeck, West End Riverside and the Innovation Arc.  With the support of infrastructure change and investment this could unlock and support the delivery of c50,000 new homes to meet demand and create sustainable new neighbourhoods, bringing the benefits of investment to existing communities in places such as Lincoln Green and Holbeck. There are opportunities to maximise affordable housing delivery within these neighbourhoods through consideration of the points highlighted in Section 2 above.

How will affordable housing policy within LLP2042 support regional- level commitments, strategies and organisations?

Affordable housing is a key issue for regional initiatives and therefore affordable housing policy within LLP2042 will help to deliver these.

Mayoral Pledges[21]

The West Yorkshire Mayor, Tracey Brabin, recognised the need to increase the supply of affordable housing to meet needs and pledged to build 5,000 new affordable homes across West Yorkshire by 2028.  The Mayoral office is focusing funding, resources and lobbying for policy changes to meet this ambition and working with People Powered Homes to support the delivery of affordable community-led housing across the region.

West Yorkshire Housing Partnership[22]

The West Yorkshire Housing Partnership (WYHP) is made up of key RP’s based in the region and local authorities that are actively developing their own new stock (including Leeds City Council), as well as representation from West Yorkshire Combined Authority and Homes England and supports affordable housing delivery across the region. This partnership has an active work programme to support the affordable housing sector in the region, unlock collective opportunities and investment, and assist the mayor in achieving affordable and sustainable housing pledges.

West Yorkshire Housing Strategy[23]

Objective 2 of the Strategy is “Increasing the provision of truly affordable, accessible and adaptable homes”.  This will be achieved by working with partners, supporting delivery along with WYHP and Homes England, maximising potential delivery on brownfield sites, exploring delivery models and policy tools to boost delivery, to explore the alignment of viability assessments, supporting local authorities to address housing need, WYCA adding value to local authorities’ work and developing a regional understanding of temporary accommodation and the needs of diverse and minority communities.

How will affordable housing policy be consistent with the NPPF?

Affordable housing is a well-established element in national planning policy and the most recent NPPF has put greater emphasis on the importance of local plans and application decisions delivering affordable housing to meet identified local need.  It puts greater focus on social rented homes and the delivery of affordable housing through the development of land in, or released from, the Green Belt.  In terms of affordable housing, Local Plans should:

• Have strategic policies that set out an overall strategy for the pattern, scale and design quality of places and make sufficient provision for homes (including affordable housing), employment, retail, leisure and other commercial development.
• Set out the levels and types of affordable housing provision required through developer contributions
• Seek affordable housing on major developments only other than in designated rural areas.
• Have policies that are based on an assessment of affordable housing need in terms of numbers, size, type and tenure; and seek a mix that meets identified local needs, specifying the type of affordable housing required, including a minimum proportion of Social Rent homes, and the expectation that they will be provided on-site.
• Set affordable housing requirement(s) for major housing development on land which is proposed to be released from the Green Belt or which may be permitted on land within the Green Belt which should 1) be higher than requirements for land which is not within or proposed to be released from the Green Belt; and 2) require at least 50% of the housing to be affordable, unless this would make the development of these sites unviable.
• Support the development of exception sites for community-led development including one or more types of affordable housing and rural exception sites that provide affordable housing to meet local needs.
• Whilst there is no longer a requirement for 25% of affordable housing required through planning obligations to be First Homes, First Homes exception sites is still extant policy.

Affordable housing policy within LLP2042 will be consistent with these elements.  The recent SHMA provides detailed evidence of affordable housing need in terms of number, size, type and tenure and the Green Belt assessment work and the emerging overall strategy will feed into the consideration of developing land in the Green Belt or Green Belt release where high levels of affordable housing should be sought.

How will the impact of affordable housing policies be measured?

Gross affordable housing completions are currently monitored under indicator 10 of the Core Strategy Monitoring Framework Update (October 2019).  Table H19 of the latest Authority Monitoring Report 2023/24[24] shows completions by how they were delivered and Table H10 shows completion broken down by tenure type since 2017/18.   It is proposed to set other indicators which could include affordable housing completions by unit size and the split between homes built on development sites and the payment of a commuted sum in lieu of actual homes.

Affordable housing delivery will be monitored though regular checking of planning permissions granted, housing developments started, completions of homes, the sale of affordable units to Registered Providers, the letting of affordable rented units and the sale of affordable home ownership units.  This will be done primarily using planning permission data, information required through planning conditions and legal agreements and liaising with Registered Providers and developers.

Drilling down into this data will enable monitoring of the type, size and tenure mix of affordable housing against policy targets.  It will also reveal why some schemes were approved despite not being policy compliant, how various planning gains were balanced on individual sites and what impact viability had on affordable housing delivery in terms of numbers, types and affordability. This information can then be compared with detailed information relating to affordable housing need as it changes over time.

How will affordable housing policy be implemented?

The requirements of policy will be applied along with other policies of the Local Plan during the determination of major planning applications for housing.   Affordable housing provision will be considered along with other planning obligations which will mitigate the impacts of otherwise unacceptable development and make it acceptable in planning terms.  Details of the required affordable housing (including numbers, tenure, location plan identifying units) and actions that must be taken will be set out in a legally binding Section 106 agreement that runs with the land.

How does affordable housing policy address equality, diversity, cohesion and integration?

Affordable housing is for those in need, regardless of who they are.  Qualifying criteria will often set threshold for income to ensure the home is affordable and may include requirements for tenants to be working or living or have family ties to an area, but no criteria will set requirements in terms of the nine protected characteristics set out in the Equality Act 2010 unless the homes are specifically for a certain sector of the population e.g. older people’s accommodation, homes for disabled people.   Whilst the exact number and form of affordable housing policy in LLP2042 has yet to be determined, it could include elements that address affordable housing need and delivery for specific groups and integrate with broader policy that addresses specific needs such as accessible housing and appropriate design.  The well established principles that affordable housing looks no different to market housing and affordable homes are mixed in with market homes help to ensure equality, cohesion and integration.

Specialist housing needs of different groups

In addition to planning for households in affordable housing need, the NPPF also refers to housing needs for different groups in the community and these fall into two broad groups: housing for people with additional needs and housing for specific household types.  The 2025 SHMA sets out the needs of these groups in Leeds at Chapter 4 ‘The needs of different groups’, which includes consideration of specialist housing options for older people, student housing, co-living, gypsy and traveller and showpeople and self/custom housebuilding.  The SHMA provides evidence of the need for different accommodation options and support needs. Given the ageing of the population, the need for specialist older person accommodation is expected to increase.

The Local Plan must consider housing options for older people, alongside the backdrop of an ageing population. The Council is keen to ensure we provide the right size and type of homes required across the Leeds as part of the Leeds Local Plan.  In February and March 2023, the Council consulted on the broader scope of housing issues in Leeds, which included older persons accommodation.  This work has since been supported by evidence that has been finalised as part of the SHMA, which was published in September 2024 and then updated in April 2025.  The SHMA has been produced in co-ordination with internal colleagues across the Council including City Development, Adults & Health and Children’s Services as well as over 100 external stakeholders.

There are different types of older persons accommodation and there is no single solution to the provision of older persons accommodation but rather a requirement to facilitate a range of options including retirement homes, assisted living, sheltered housing, nursing homes and independent living.  We also know from the evidence undertaken through the SHMA and discussions with organisations such as the Centre for Ageing Better that we need to ensure everyone can live in age-friendly, accessible, healthy homes in intergenerational communities. Everyone, no matter their age, background or ability, needs a good home that is safe, healthy and secure.

The vast majority of older people live in their own homes rather than specialist accommodation and wish to continue to do so perhaps with some home improvements and/or adaptions to meet their changing needs.  However, making changes to an existing home is sometimes not feasible nor practical, and moving home could be the best solution - this includes a rising demand for level-access properties. One of the most interesting outputs of the previous scoping consultation of Leeds Local Plan was the overwhelming support from the public for the provision of new bungalows.  This was further supported by the findings of the household survey in the SHMA. 

The 2023 household survey indicates that a majority of older people (65%) want to remain in their current home with help and support when needed (Table 4.1 in the 2025 SHMA). There is also interest in a range of options including buying on the open market, sheltered accommodation, renting from housing association / council and co-housing.

Table 4.1             Older persons’ housing preferences by age group

 Age-related housing need relates to the needs of specific age groups in the housing market due to life events and the impact this has on the need for dwellings of sizes and types and also affordability. For older households this includes ‘rightsizing’ and adaptation of existing dwellings. Across Leeds there are around 16,261 units of specialist older persons accommodation comprising 10,094 specialist older accommodation (C3 planning use class), 1,231 Extra Care units (C2 use class) and 4,936 bedspaces in residential care settings (C2 use class).

The SHMA sets out an assessment of need for different types of older persons accommodation based on latest metrics provided by the Housing Learning and Information Exchange (Housing LIN) and analysis of demographic change. This establishes:

• A need in 2024 for 4,179 residential care bedspaces increasing to 5,266 by 2040. This compares to a current supply of 4,936 bedspaces.
• A need in 2024 for 2,893 units of Extra Care bedspaces increasing to 3,646 by 2040. This compares with a current supply of 1,231 units.
• A need in 2024 for 12,857 C3 specialist older person dwelling units rising to 16,204 by 2040. This compares with a current supply of 10,094 units.

This indicates a need for an additional 8,854 units broken down as follows:

• 6,110 additional C3 dwelling units over the period 2024 to 2040 or 359 each year.
• 2,415 additional C2 Extra Care units over the period 2024 to 2040 or 142 each year.
• 330 additional C2 Residential Care bedspaces over the period 2024 to 2040 or 19 each year.

The provision of appropriate adaptations to existing dwelling stock can help people lead independent lives. National guidance also asks Local Planning Authorities to consider the extent to which existing dwelling stock can help meet the needs of older people. Given that most older people want to remain in their own homes with help and support when needed, the 2023 household survey undertaken as part of the SHMA provides a useful insight into the proportion of households who need care and support and the extent which properties are adapted.

Given the ageing demographic of Leeds and the identified levels of disability amongst the population, it is recommended that a policy to provide new homes built to accessibility standards is included in the Local Plan. The 2023 household survey data considered illness/disability. There was a least one person with an illness/disability in 168,746 or 49.4% of households. The survey estimated a total of 225,565 people or 28.2% had an illness/disability which is higher than the ONS estimates. Table 4.11 of the 2025 SHMA shows the number of people stating an illness/disability and the type of illness/disability.  The most frequently mentioned illness/disability was physical/mobility impairment (11.5%), followed by mental health issue (7.0%), other (6.9%) and older age frailty (6.4%).

Table 4.11           Number of people stating illness/disability

Based on evidence, which takes into account the requirements of national guidance, the SHMA recommends that:

• 4% of new dwellings are built to M4(3) wheelchair accessible standard (this would imply an average target of around 139 each year); and
• all remaining new dwellings are built to M4(2) accessible and adaptable standards to take account of the ageing demographics of the city. This will ensure that new dwellings can be occupied and also visited by people needing accessible/adaptable dwellings.

The NPPF in requiring the housing needed for different groups in the community to be assessed and reflected, includes students. Local Planning Authorities are required to engage with universities and other higher educational establishments to ensure they understand their student accommodation requirements in their areas.

Purpose-built student accommodation (PBSA) is providing for an increasing proportion of all student housing needs and it is likely more will be needed as other housing options reduce. Almost half (47 per cent) of students living in PBSA provision as a whole are UK undergraduates; and a fifth (20 per cent) are Chinese students. Nearly two-thirds (63 per cent) of students living in university-provided or commissioned PBSA are UK students; eight per cent are Chinese nationals. There is a demonstrable demand for affordable PBSA provision. However, in Leeds, it is unlikely that PBSA aimed exclusively at high-cost/high-specification provision is meeting current needs or will meet future needs and demand.

The SHMA looks across the report published by Unipol in December 2023 ‘Leeds: assessment of the student housing market, 2023’ through the Student Housing Working Group. The group is a multi-agency body set up to share information. It includes the Council, the universities, Unipol, local students’ unions and Leeds Property Association.  The research was commissioned by the Council, with the backing of the universities.

The report recognises that demand and supply of student accommodation in Leeds has changed significantly over the last 20 years. Specifically, it identifies a rapid increase in the supply and delivery of Purpose-Built Student Accommodation (PBSA) schemes, effecting a shift away from the model of co-living in the outer areas and towards residential life in self-contained studio units in the city centre. The Council has approved schemes for over 17,000 bedspaces since 2017/18 including over 7,500 in the last two years.  The reports outlines that much of the new supply is reflective of recent demand for high-specification accommodation from the international post-graduate intake from China to the University of Leeds.   The evidence suggests that student numbers for international post-graduates to the University of Leeds are expected to plateau and future need is to come from international students at Leeds Beckett University from countries such as India and Nigeria, which the report suggests may shift demand to other types of accommodation at a different price point.

In the short-term it is likely that there will be sufficient PBSA and off-street shared housing to meet demand.  In the medium to long-term demand for PBSA at an affordable cost or mid-price point is likely to grow and on current trends is unlikely to be met by current type of supply. There is a demonstrable demand for affordable PBSA provision. However, it is unlikely that PBSA aimed exclusively at high-cost and high-specification provision is meeting current needs or will meet future needs and demand.

The conclusions of the research identified that there is likely to be a need and demand for more moderately priced PBSA (at a lower specification level). This could be in the shape of creatively specified new-build, clever and attractive refurbishment of older accommodation to meet demand from returning undergraduates and from international students on restricted incomes. In the longer term, planning policy has a significant part to play in facilitating affordable new development.

The NPPF sets out that self-build and custom build housing can make a significant contribution to addressing housing requirements and promote the development of a good mix of sites.

A wide-range of information has been assembled from various sources which helps to scope out the likely level of specialist needs across the city’s population. Although it is a challenge to quantify the precise accommodation and support requirements for household groups, the SHMA has helped to scope out where needs are arising and has provided indicators of specific needs across various needs groups.