The price of new homes is driven up because there is a national shortage. National policy requires Councils to plan for new homes to help to resolve this issue.
The Local Plan can include policies which set out the proportion of new homes that will be ‘affordable housing’.
The current Local Plan requires 30% affordable housing for sites with 10 or more dwellings, which has been set based on an evidenced need for affordable housing (including affordable rented dwellings and affordable home ownership options such as shared ownership).
The new Local Plan will contain an affordable housing policy, where the affordable housing needs will be evidenced through a Housing Needs Assessment.