Policy HO12
Build to rent
Development proposals for Build to Rent accommodation must follow the policy approach set out in the London Plan, subject to the following additional requirements:
a) Proposals must deliver affordable housing in accordance with Policy HO3 of the Local Plan.
b) Where a development proposal involving Build to Rent has potential to include more than one residential core and/or block, applicants should use this separate core and/or block to provide low cost rented housing to be managed independently by a registered provider of affordable housing. To follow the Fast Track Route, the council will seek 70 per cent of the overall affordable housing requirement for the development as low cost rented accommodation within this separate core and/or block. The 30 per cent intermediate affordable housing requirement will normally be accepted as discount market rent accommodation within the Build to Rent element of the scheme at London Living Rent levels. If the low cost rented accommodation to be managed by a registered provider in the separate core and/or block equates to less than 70 per cent of the overall affordable housing requirement for the development, the proposal must follow the Viability Tested route. In these circumstances, the council will seek from the applicant the optimum affordable housing offer for the development as a whole.
c) Where an applicant can demonstrate to the council's satisfaction that it is not feasible in design terms to include a separate residential core and/or block in the development proposal, the council will accept the full affordable housing requirement for the scheme as discount market rent units managed alongside the market rent units, in accordance with the requirements of London Plan policy. To follow the Fast Track Route, the council will seek 30 per cent of the affordable provision at rents equivalent to London Living Rent level, with the remainder at a range of genuinely affordable rents to meet priority housing need in Hammersmith and Fulham. If these requirements are not met, the scheme must follow the Viability Tested route.
d) Build to rent housing should provide a mix of dwelling sizes that meets identified local housing needs in accordance with Policy HO4 of the Local Plan.
e) There is unified ownership and unified management of the scheme as a whole, and an appropriate management plan is provided for both the private and affordable elements of the scheme.
f) Developments must provide a good standard of living conditions and amenity for future occupiers, having regard to Policy HO10 of this Plan, which sets out requirements in terms of overall amenity, privacy daylight, and outlook.
4.90 The Build to Rent or Private Rent sector has the potential to boost the supply of private rental accommodation across the borough. The LHNA identifies that private renting is high and is increasing in the borough; between 2011 and 2021 the private rented sector increased from 33% to 37%. Bearing this in mind, Build to Rent may offer a greater range and choice to private renters. The council supports the delivery of high-quality, professionally managed rental homes through the Build to Rent (BtR) model. BtR developments can help meet housing need by providing secure, long-term rental options for a range of households, particularly those who may not be able to access home ownership or social rents. The Council will apply the definition of BtR and eligibility for the Fast Track Route in accordance with the London Plan, subject to the additional local requirements set out in this policy.
Affordable build to rent accommodation
4.91 Affordable housing within BtR schemes must be provided in accordance with Policy HO3 of the Local Plan. Where a development includes more than one residential core or block, the Council's preference is for the affordable element of the scheme, comprising social rent and intermediate affordable housing to be provided in a separate core or block, managed independently by a Registered Provider. This approach supports the delivery of affordable housing in perpetuity and enables nominations from the council's housing register. Applicants must demonstrate that this option has been fully explored from the outset of the design process. Where it is not feasible, the Council will accept the full affordable housing requirement as Discount Market Rent (DMR) units managed alongside the market rent units, subject to robust justification. Please note, that this initial position will be subject to viability testing prior to the Regulation 19 Local Plan consultation.
4.92 To qualify for the Fast Track Route, the council will seek 70% of the affordable housing requirement as low-cost rented accommodation in a separate core or block, with the remaining 30% as DMR units at London Living Rent levels. Where a separate core is not feasible, the Council will seek 30% of the affordable provision at London Living Rent levels, with the remainder at a range of genuinely affordable rents that reflect local housing need. If these requirements are not met, the scheme must follow the Viability Tested Route.
4.93 All BtR schemes must be held in unified ownership and under unified management for the duration of the covenant period, which must be secured through a Section 106 agreement. A comprehensive management plan must be submitted with the planning application, covering both the private and affordable elements of the scheme. This should include details on tenancy terms, maintenance, repairs, resident engagement, and the management of communal areas.
Dwelling sizes
4.94 BtR developments must provide a mix of dwelling sizes in accordance with Policy HO4 (Housing Mix). Family-sized units should be designed to be suitable for family occupation, with appropriate layouts, a range of bedroom sizes, and generous living space. While some larger units may be occupied by sharers, they should still be designed with families in mind to support inclusive communities and optimise density.
Living conditions
4.95 The council will also expect BtR developments to provide a high standard of living conditions and amenity for future occupiers, in line with Local Plan Policy HO10. This includes ensuring adequate privacy, daylight, and outlook, as well as access to high-quality communal and private amenity space.
4.96 The long-term affordability and management of BtR schemes will be secured through legal agreements, including clawback mechanisms where affordable units are converted to other tenures after the covenant period. The council will also follow the Mayor's Affordable Housing and Viability SPG in relation to review mechanisms and valuation methodologies.