Ruling could see flood of housing, warns Shropshire expert

Niall Blackie, of the Law Society's specialist planning panel and senior partner with Shropshire law firm FBC Manby Bowdler, said the decision will have "far-reaching implications" for developers and councils.

The judgement backs a Government policy which said small-scale developments of 10 houses or fewer did not need to include affordable homes – a policy which many local authorities said was directly opposed to their own local development plans.

Telford & Wrekin Council said the ruling does not necessarily mean there will be an increase in new applications in the region, while Shropshire Council said it was considering its position.

The original appeal was brought by West Berkshire and Reading councils, which claimed the Government's affordable housing policy went against planning law.

In July last year the High Court quashed the national policy, but the Court of Appeal has now ruled that the Government was entitled to introduce the policy and that local authorities had had proper opportunity to comment – a matter they had disputed.

The ruling last year specifically referenced Shropshire Council's response to consultation on the affordable housing policy before it was introduced, which said that 80 per cent of the annual housing delivery in the county took place on sites of five or less, so the number of affordable homes being built in the region would have been lower under the Government's affordable housing policy.

Mr Blackie said:

"Many councils, such as Shropshire, have now adopted development plan policies which are in conflict with the original policy. Indeed Shropshire's delivery of affordable housing is underpinned by the expectation of contributions from all sites, not just those of 10 houses or more, and much of its housing will be on these smaller sites."

"Arguably their housing policies in the plan would then become out of date, and liable to be set to one side in planning decisions and appeals.