Jason Woodward reports on the latest problems besetting efforts to provide more cheap housing in Brighton and Hove.

THE CRITICAL shortage of affordable housing in Brighton and Hove has prompted desperate measures.

A policy was introduced this year, which demands developers set aside up to 40 per cent of any new residential scheme for social housing.

The trouble with this quota, which is among the strictest is the country, is that it exceeds levels set down by the Government.

In addition, the ruling has not yet been formalised in the Brighton and Hove Local Plan, which sets out the city council's planning policies.

In the last six months there have been three separate planning appeals, at which the policy has been criticised by Government planning inspectors.

Developers say the threshold is too high and claim they are being forced to look elsewhere to invest in housing schemes.

Despite the opposition, the council insists the housing crisis is so acute the policy must be pursued to help those left behind by soaring property prices.

The number of people officially classified as being in housing need in the city is double the national average, with 13,000 households living in unsuitable housing and unable to afford better accommodation.

The city received a boost this week with a grant of £8.3 million from the Housing Investment Programme to build new housing and make improvements to existing council properties.

Despite such cash injections, the city is still facing a shortfall of 27,000 low-cost homes over the next five years. Even the best case scenarios predict only 600 new affordable homes will be built each year.

The housing problems have been exacerbated by rocketing house prices and rents, which have left thousands outside the system. The average price of a home in the city is £135,000, according to the most recent figures from the Land Registry.

In a recent statement, housing Cabinet councillor Tehmtan Framroze said: "There is a genuine and growing consensus we should push ahead and implement real and meaningful housing actions that deliver affordable homes."

The council has begun demanding increased concessions from developers before granting approval to new residential projects.

From now on, any developer who applies to build a scheme of ten homes or more must set aside 40 per cent of the site as affordable housing. With smaller schemes of between four and ten homes, the quota is reduced to 25 per cent.

There have been some successes for the council. Last month, permission was given for a 22-flat block in Connaught Road, Hove, which will be the first large scheme in the city to comprise the 40 per cent element of affordable housing.

Councillors point to this partnership with Karis Developments as the way forward for future housing development in the city.

But Government guidelines say affordable housing quotas should only be imposed on developments of 25 homes or more although, in special circumstances, the threshold can be reduced but not to developments below 15 homes.

The policy was most recently tested during an appeal by developers Conicol against councillors' attempts to impose the new criteria on a proposed scheme in Conway Street, Hove, of 14 flats.

The appeal was upheld by inspector Peter Rosson, who said the council's quota conflicted with national policy and that planning authorities should not seek to adopt thresholds below the lower level.

His criticism echoed that made by another inspector in June, who said the policy breached national guidelines after being called to decide on a scheme in Upper Gloucester Road, Brighton.

Nigel Green, planning policy manager for the council, said: "It was very disappointing that the appeal decisions did not go our way but we don't think it undermines our affordable housing policy."