Affordable housing Open market sites
All new market housing developments are required to make a contribution towards the provision of affordable housing in accordance with Core Strategy Policy CS11.
The three target rates for affordable housing contributions in Shropshire were last calculated for the financial year 2012/2013 and these were 20%, 15% and 10% for areas A, B & C. These have been out of date for some time so as part of the Local Plan review a viability assessment was completed.
The latest Viability Assessment for Shropshire was undertaken in 2020, utilising a methodology compliant with the requirements of the National Planning Policy Framework (NPPF), relevant National Planning Practice Guidance (NPPG), and Royal Institute of Chartered Surveyors (RICS) guidance.
In summary, this assessment recommended:
- 20% affordable housing contributions in the south (including the higher south) and Shrewsbury.
- 10% affordable housing contributions in the north
A review of this Viability Assessment was undertaken in 2024, which confirmed that the conclusions of the assessment remained appropriate.
Policy CS11 of the Core Strategy establishes the approach to affordable housing provision from new market development. It includes an expectation that “all new open market housing development makes appropriate contributions to the provision of local needs affordable housing having regard to the current prevailing target rate, set using the Shropshire Viability Index and the viability of developments taking into account Policy CS9 in respect of infrastructure contributions.” The explanation to Policy CS11 of the Core Strategy explains that there will be a five yearly review of the viability assessment which underpins the current prevailing target rate.
The Viability Assessment for Shropshire undertaken in 2020, and reviewed in 2024, constitutes the most recent viability assessment which can underpin the current prevailing target rate. Furthermore, in February 2025, Shropshire Council’s Cabinet resolved to agree that “the evidence base supporting the draft Local Plan (2016-2038) is a material consideration in decision making on relevant planning applications...” this evidence base includes the Viability Assessment for Shropshire undertaken in 2020 and the subsequent review in 2024.
As such, consistent with Policy CS11, the current prevailing affordable housing target rates for market housing in Shropshire are:
- 20% affordable housing contributions in the south (including the higher south) and Shrewsbury
- 10% affordable housing contributions in the north
Thresholds
Although our current policy requests a contribution on all developments of one or more new dwellings, National Policy (NPPF) has set thresholds for the size of developments that will be required to provide a contribution.
In urban areas the threshold is 10 or more dwellings or a site area of 0.5ha or more.
In designated rural area (DRA) the threshold is 5 or more dwellings or a site area of 0.5ha or more.
To see the list of DRA, please check our policies page.
Find out which area your site is in.
Developers must provide an Affordable Housing Proforma with their planning application so their contribution can be calculated and agreed.
To calculate your contribution, please complete the affordable Housing Contribution Proforma.
A standard section 106 legal agreement will be required for all residential developments, for on-site provision or financial contributions as appropriate.
To find out about payment timescales and S106 Agreements please see developer contributions.
Developers should contact the Housing Enabling team about the on-site affordable homes via affordablehousing@shropshire.gov.uk before submitting an application or as part of a Pre App in order to ensure the affordable homes meet the identified need in the area the site is located in.