Number of new affordable homes in Reading plummeted

The figure is just one third of the previous year's total and is a historic low.

More than a third of developers dodge their obligations to contribute to affordable housing using a Government loophole and converting offices into homes.

Changes in central government policy have left Reading Borough Council powerless to collect more than £591,000.

Tony Page, lead member for housing, said the changes had cost Reading nearly £5m and 370 housing units in just three years.

"This will be and enduring hit on Reading's ability to provide much needed affordable housing as well as contribution to education, leisure and open space," he said.

"Around 34 per cent of new completions during the year came from the permitted development right to convert offices to residential.

"As no planning permission is required, these developments avoid the requirement to provide affordable housing."

The council, along with neighbouring West Berkshire Council, lost a legal challenge in the Court of Appeal trying to keep the right to require affordable housing on sites of 10 homes or less.

The council has successfully argued it should be considered an exception to the rule in seven appeals whilst losing others, leading to a formal complaint to the Planning Inspector.

A meeting of the full council on Tuesday, March 28, heard no response had been received.

In 2014/15 some 145 affordable homes were built in Reading. The council can only ask for contributions on sites needing planning permission, meaning permitted developments, which do not need a planning permission, are exempt.