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08
Aug
Explained: What is affordable housing and how is North Yorkshire tackling the shortage?
For as long as the housing crisis has been making headlines, there has also been a debate over how affordable it is to get on the ladder.
North Yorkshire is no stranger to the desire to build what is known as “affordable housing”.
Just this past week the council revealed plans to buy 10 new build properties to help meet its own council housing targets.
But, amid all this, there is one lingering question: what is affordable housing?
In this explainer, we’ll answer that question and take a closer look at how North Yorkshire is tackling the issue.
What is affordable housing?
When is comes to discussion over housing and planning, the phrase “affordable housing” is banded around often with little explanation on what it actually means.
The National Planning Policy Framework, which details the government’s planning policies, defines affordable housing as:
…housing for sale or rent, for those whose needs are not met by the market (including housing that provides a subsidised route to home ownership and/or is for essential local workers).
The term is used routinely in planning applications when developers look to build houses in an area.
Housebuilding off Yew Tree Lane in Harrogate.
Often these include social rented homes (about 50% of local market rents), affordable rent (up to 80% of market rents) or homes which can be sold as shared ownership properties.
However, as the House of Commons Library noted, some of the homes “are clearly unaffordable to those on mid to lower incomes”.
How big is the problem in North Yorkshire?
Much like other areas of the country, North Yorkshire has its own problem with affordable housing.
In a North Yorkshire Council report from February this year, the council warned that there was a “shortage of affordable homes” in the county, with some properties costing on average 10 times more than household incomes.
Currently, the council has more than 7,000 households currently on its housing waiting list.
Households register with North Yorkshire Home Choice — a choice-based lettings scheme which allocates social and affordable housing throughout the region.
Cllr Simon Myers, the council's executive councillor for housing, told an executive meeting on Tuesday (August 4) that the authority currently had high demand for single person accommodation.
How is the problem being tackled?
Both the council and housing developers have sought to tackle the problem in different ways.
Developers are required to allocate 40% of any housing proposals to affordable housing, under planning rules.
However, some seek to go further than that.
In July last year, Leeds-based Yorkshire Housing revealed 72 affordable homes at its £20 million development in Spofforth.
Elsewhere, a scheme on Knox Lane in Harrogate, which is currently being considered by the council, would see 100% of the 53 properties allocated as affordable.
The affordable housing on Massey Fold in Spofforth.
Meanwhile, the council has set its own targets for social rented properties.
The authority wants to deliver 500 new council homes in the region by 2029, which is funded through a 100% premium on council tax for second homes.
Recently, it revealed plans to acquire 10 new homes in Knaresborough to help meet that target.
Of these, seven — five four-bedroom and two three-bedroom houses — will be allocated to social rented properties.
Another three homes would be purchased to sell as shared ownership properties. They include one three-bedroom and two four-bedroom houses.
It has also partnered with housing developer Lovell Partnerships Ltd to help speed up the development of affordable housing sites.
However, building affordable properties is often not straightforward.
Why is it still a problem?
According to developers, part of the reason for a lack of affordable housing coming forward is the viability of delivering a housing site in general.
When a housebuilder is planning to build a scheme, it has to consider the costs of building each property. This can include taxes, construction costs and government regulations — including affordable homes.
The remit for affordable housing is often cut to help lower costs.
In 2025, the Stray Ferret reported that the council had agreed to reduce the affordable housing remit on three key housing sites in Harrogate.
The sites included:
- 224 homes on Whinney Lane
- 480 homes on Whinney Lane and Lady Lane
- 480 homes off Otley Road and Beckwith Head Road
Originally, developers were required to allocate 40% of homes on the sites as affordable, which would ave seen 473 affordable properties built.
However, due to rising costs and concerns over the viability of bringing the three schemes forward, the council agreed to cut this to 35% — meaning 415 homes would be allocated as affordable.
Councillors criticised the move and claimed they had “no choice” but to approve the move.
But, according to the Home Builders Federation, the move is a result of the “viability challenge” facing many developers.
The organisation argues that new taxes, levies, and regulations have added £76,000 to the cost of building a home, depending on its location.
Neil Jefferson, chief executive at the Home Builders Federation, said the cumulative cost puts both private and affordable homes at risk.
He said:
If government wants the private sector to deliver, it must create the right conditions for it to do so. Without urgent action to review and reduce the overall cost burden, the delivery of both private and affordable homes will remain at risk, and people will continue to miss out on the homes they need.
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