What is most profitable for developers and most affordable for the community is ‘rarely the same thing’ in newbuild housing developments, according to a report.

In most cases, says the National Housing and Planning Advice Unit (NHPAU), newbuild schemes are not affordable for many under-40 families that are first-time buyers relying primarily on income, rather than wealth or equity, to get a foot on the property ladder.

The report also concludes that the building trends typical of the noughties – for example, high density flats on brownfield sites – are unlikely to promote affordability or meet consumer need.

The NHPAU researched ten areas, including Leeds, London and Southampton, and found the mix, density and location of new developments all influenced the viability and affordability of homes.

Considerable variation of affordability and profitability levels was discovered between and within cities, while ‘marked differences’ were identified in the affordability of market housing developed on newbuild sites across market areas.

Chief executive Neil McDonald said: ‘The NHPAU has long maintained that building the right type of homes in the right places is crucial to improving affordability.

‘This work provides further evidence of this and of the tensions between what is most profitable for the developer and what may be best for the local community.’

The study cautions against ‘one size fits all’ planning policies and makes several recommendations for local authorities including monitoring the relative prices of different sizes and types of housing on new build schemes and comparing them with the local affordability thresholds developed in their strategic housing market assessments.

by Jill Theobald, www.newstartmag.co.uk