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Britain鈥檚 largest housebuilder has pulled four planning applications in the last few weeks due to concerns about the government鈥檚 proposed 50% affordable housing rule on green belt developments.

The government plans to increase development on "low quality" green belt land, termed "grey belt", as part of its ambition to build 1.5 million homes.

Its draft National Planning Policy Framework published last month sets out several 鈥済olden rules鈥� to ensure the public benefits from such development, including schemes having 鈥渁t least 50% affordable housing, with an appropriate proportion being social rent, subject to viability鈥�.

Philip Barnes, group land director at 拢5bn-turnover Barratt Developments, raised concerns about the policy in a blog this week.

He warned existing sites within the green belt in draft local plan applications for housing 鈥渨ill not be able to provide 50% affordable housing".

He said: 鈥淪ince [the] draft NPPF, Barratt has already pulled four in-flight planning applications on draft allocated sites because the spectre of 50% renders the scheme unviable due to the unacceptably reduced (or removed) land value for the landowner.鈥�

He said schemes will have been viability tested against a lower affordable housing percentage, so a switch to 50% would "upend" the whole plan.

He added: 鈥淭he landowner expectations of value are contractually set, based on planning credentials, and such sites will therefore need to be withdrawn from the market and planning process, either temporarily or permanently.

鈥淲hile the 鈥榮ubject to viability鈥� caveat is helpful, landowners and housebuilders need far more confidence than that to invest hundreds of thousands of pounds promoting a scheme which is now financially underwater with a 50% affordable housing requirement.鈥�

Barnes also raised concerns about the government鈥檚 plan to set a benchmark land value for use in viability assessments, saying it would lead to adverse outcomes because land values differ from region to region.

>>See also:The ins and outs of Labour鈥檚 new National Planning Policy Framework

He said that the NPPF is a 鈥済reat starting point鈥� but the provisions around 50% affordable housing and benchmark land value 鈥減erhaps need tweaking otherwise the ambition for a rapid increase in new homes could be weakened鈥�.

Rachael Williamson, head of policy and external affairs at the Chartered Institute of Housing, said the institute welcomes 鈥渢he government鈥檚 focus on boosting the supply of much needed affordable housing鈥�.

She added: 鈥淲e鈥檙e currently considering the detailed proposals set out in the NPPF consultation, including the proposed target of 50% affordable homes for major developments on grey belt land.

鈥淎s always, there鈥檚 a balance to strike to ensure the ambitions set out can be delivered at the necessary pace and scale.鈥�

A spokesperson for the Ministry of Housing, Communities and Local Government, said: 鈥淲e are facing the most acute housing crisis in living memory, which is why we will deliver 1.5 million homes including the biggest increase in social and affordable housing in a generation.

鈥淭he government will work with housebuilders to achieve this, and our golden rules will ensure development on green belt land creates the genuinely affordable housing that people need. We are currently consulting on these measures and will respond in due course.鈥�