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Report Social and affordable housing Governance and planning Housing in urban policy

Supporting affordable housing supply: inclusionary planning in new and renewing communities

Final Report No. 297

Date Published: 10 Apr 2018

Authors: Nicole Gurran Catherine Gilbert Kenneth Gibb Ryan van den Nouwelant Amity James Peter Phibbs

This research examined how land use planning mechanisms (‘Inclusionary planning’) support the supply of affordable housing in the UK and USA, and how they may help in Australia, playing a role in incentivising dwelling units, land or financial contributions towards affordable housing projects.

Inclusionary planning refers to approaches for securing or leveraging affordable housing through the planning and urban development process, including: inclusionary zoning—where development within a designated zone makes a contribution towards supplying affordable housing according to a prescribed percentage of the affordable housing development; density bonuses—where development at a density greater than what is usually permitted is offered in return for an affordable housing contribution; planning concessions—where planning rules are varied for affordable housing development or to enable low-cost market housing; negotiated agreements—where affordable housing contributions are negotiated on a case-by-case basis (although a policy framework to inform these negotiations may still apply); and impact fees—where financial contributions from developers are paid to offset the impact of a project on affordable housing demand or supply. 

Voluntary planning incentives can encourage affordable housing inclusion as part of incremental residential development within the existing planning and development control framework. Incentives can also provide more flexible options to support delivery of mandatory affordable housing requirements. When planning rules are varied to allow for development of lower cost housing forms (e.g. boarding houses), an affordable housing requirement ensures that benefits are passed on and homes are affordable to target groups. 

DOI: 10.18408/ahuri-7313201

Published by: Australian Housing and Urban Research Institute Limited

ISSN: 1834-7223

ISBN: 978-1-925334-60-9


Citation: Gurran, N., Gilbert, C., Gibb, K., Nouwelant, R., James, A., and Phibbs, P. (2018) Supporting affordable housing supply: inclusionary planning in new and renewing communities, AHURI Final Report No. 297, Australian Housing and Urban Research Institute Limited, Melbourne, https://www.ahuri.edu.au/research/final-reports/297, doi:10.18408/ahuri-7313201.

Gurran, Nicole
Gilbert, Catherine
Gibb, Kenneth
van den Nouwelant, Ryan
James, Amity
Phibbs, Peter