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Information for Landowners


The provision of suitable land for affordable housing projects is a key factor.

There are three basic scenarios:

1. The land lies within the town/village development area. The planning authority will seek to negotiate with the developer so that a certain percentage of houses are affordable.


2. The land lies outside of and adjacent to the town/village development area. The landowner ‘gifts’ the land to a community land trust as a charitable gesture. Planning permission is normally granted, but only for affordable houses.


3. The land lies outside of and adjacent to the town/village development area. The landowner sells the land to a developer. The cost is substantially less than market rates thereby enabling an affordable housing development, but the cost of the land is more than the pure agricultural value. The Welsh Assembly Government sets maximum prices for ‘affordable’ houses with the Acceptable Cost Guide (ACG – see the Affordable Housing IDCG on the Powys County Council website)

In each of the above scenarios the agreement between the developer and the planning authority is enshrined in a ‘Section 106 Agreement’. This allows for exceptions to the normal planning restrictions when there is a benefit to the local community.

Nb there are other factors that must be addressed to comply with planning rules, eg ecology of the site, suitable access with roads/highways, etc. Also, there must be a demonstrable need for affordable housing for local people. For more information go to the Guide to Developing Affordable Housing Schemes on this website.

It is normal for a housing association to be involved in affordable housing developments – they have the relevant expertise.

Points to note:

  • It is not necessary for landowners to sell the freehold of the land. Although this is the normal method for community land trusts there are other approaches to land ownership that can be explored. For example, landowners can lease the land and retain the freehold or they can maintain full ownership of the land and develop the housing themselves.
  • Employers have an incentive to release land for development in order to house workers.
  • If a business closes down a local branch the parent company may wish to donate the land to the community for affordable housing provision in order to mitigate the adverse economic effects of the closure.
  • Innovative financial solutions that involve collaboration between developers and the local community can be advantageous to both. In particular, 'shared equity schemes' are proving to be successful models of development.
  • Some landowners give land to their local community to use for affordable housing for purely altruistic reasons.
  • It is possible for landowners to collaborate with housing associations who could act as the developer of an affordable housing project. The association could purchase or lease the land, manage the housing and bring professional expertise. The housing association may be able to secure 58% of the capital development costs from the Social Housing Grant.
  • If you are a local landowner and are thinking of releasing land for an affordable housing project then please contact Cyril Breeze Evans at Bro Ddyfi Communities First (email cyril@powys.gov.uk)


More information:

Business in the Community have published four informative guides as part of the Affordable Rural Housing Initiative. They are available to download from the web site at http://www.bitc.org.uk/take_action/in_the_community/rural_action/affordable_rural.html

  • Developing new affordable rural housing
  • Making use of empty space for affordable rural housing
  • Affordable Rural Housing: Opportunities for Farmers and Landowners
  • Affordable Rural Housing: An opportunity for business


Launched in June 2003 by the Prince of Wales, the Affordable Rural Housing Initiative encourages the private sector, including landowners, property owners, housebuilders, developers and lenders, to help in the provision of affordable homes in rural communities.

See also the Guide to Developing Affordable Housing Schemes on this website.