Affordable housing quotas are often viewed as a constraint. In reality, they are becoming a strategic lever in UK development.
Local authorities increasingly require:
- 20–40% affordable provision on new schemes
- Long-term nomination agreements
- Clear viability justifications
For developers, this changes how schemes are structured from day one. For investors, it opens doors to:
• Long-term income certainty
• Government-backed tenants
• Reduced void and arrears risk
Affordable housing is no longer purely a planning obligation; it is a distinct asset class, particularly when paired with housing associations or supported housing providers.
The challenge lies in execution. Poor structuring can erode margins, while smart partnerships can stabilise returns.
At DXXV, we advise on navigating affordability requirements not as a compliance exercise, but as part of a balanced, risk-adjusted investment strategy.