A LEGAL judgement has been hailed as a major breakthrough that can lead to much more ‘affordable’ housing becoming available in Ludlow and south Shropshire.

Last November a ministerial decree had meant that councils could no longer insist that developers make a contribution for developments of fewer than 10 homes but this has been overturned in a landmark ruling in the High Court.

This contribution is either made in the form of a payment or the provision of a certain number of ‘affordable’ homes within a private development.

An affordable home is one that is either available for rent, shared ownership or some other social housing scheme.

The lack of ‘affordable housing’ is a major problem where the ratio between house prices and income prices in some areas is an eye watering 13:1.

It is estimated that 80 per cent of people living in Ludlow and south Shropshire looking to get on the housing ladder would not even be able to afford a starter home.

Andy Boddington, who represents Ludlow North on Shropshire Council, described the ruling as a breakthrough.

“As a result of Mr Justice Holgate’s ruling, the government has announced that it will delete the nine paragraphs of national planning guidance that direct councils not to seek affordable housing contributions from small developments or from developments that bring empty buildings, such as offices, back into use,” said Councillor Boddington.

“This is seriously good news.

“Much of the affordable housing built in Shropshire is delivered through S106 payments that are levied on developers building houses for sale.

"More than 90% of the developments in our county are for 10 homes or fewer."

Shropshire Council, that did not undertake the legal challenge but provided evidence, hopes that the Government will not challenge the new ruling.

“It is important to note that affordable housing can only be provided with subsidy of some kind and there is an acute need for affordable housing in Shropshire,” said Mal Price, the Shropshire Council cabinet member for regulatory matters.

“There are nearly 8,000 households seeking local affordable housing on the council’s housing waiting list.

“It has house price to household income ratios of 13:1 in some areas and more than 80 per cent of Shropshire’s earning households could not afford to buy a local level entry or starter home (two bed terrace) and yet individual building plots still command more than £200,000 in some areas.

“We cannot build enough local affordable housing to meet the demand.

“This has been a very challenging time for the council, councillors, officers and the development industry locally.

“We have had to contend with many overwhelmingly unsuccessful planning appeal challenges against a number of our decisions. These have contributed uncertainty and hesitation into a fragile local development industry.

“This ruling, though no doubt subject to challenge by the Government, is a huge boost for the delivery of affordable housing locally, for the sustainability of Shropshire’s communities and for house building in general by helping to remove uncertainty for developers on whether or not an affordable housing contribution is appropriate in Shropshire – it is.”

“However, policy, like the council, does not stand still and we are always very keen to hear of any amendments or suggestions from residents and local businesses on how these housing policies and housing initiatives can be refined or improved for the future.”