---
title: "Government reverses affordable housing quota changes for medium sites"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2026-08-18T06:04:20+00:00"
modified: "2026-08-18T06:04:20+00:00"
date: 2026-08-18
canonical: "https://stockmark.it/ministers-drop-plan-to-relax-affordable-housing-rules-after-negative-r/"
category: "Financial"
categories: ["Financial", "Government", "Housing"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2026/08/government-reverses-affordable-housing-quota-changes-for.png?fit=1536%2C1024&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# Government reverses affordable housing quota changes for medium sites

**Published:** August 18, 2026
**Author:** Stockmark.IT Website
**Categories:** Financial, Government, Housing
**Featured image:** ![Government reverses affordable housing quota changes for medium sites](https://i0.wp.com/stockmark.it/wp-content/uploads/2026/08/government-reverses-affordable-housing-quota-changes-for.png?fit=1536%2C1024&quality=80&ssl=1)

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The government has abandoned plans to relax affordable housing requirements for developers in England following a strong negative reaction from housing experts. Ministers confirmed on Monday that they would not proceed with proposals to remove on-site housing quotas for private builders on development sites containing between 10 and 49 houses. This decision represents one of the most significant policy reversals in the housing sector since Andy Burnham assumed the role of prime minister.

The original proposal, which was part of a 150-page planning reform document, would have permitted developers to make cash payments in lieu of building affordable homes on-site for medium-sized projects. The Treasury, under Rachel Reeves, was understood to have supported the measure, with ministers hoping it would help boost sluggish housebuilding rates. The government aims to construct 1.5 million new homes by the end of the current parliamentary term, and the change was intended to bring it closer to that target by easing regulatory burdens on private sector builders.

However, the consultation process triggered an overwhelmingly negative response. An analysis of government statistics by the National Housing Federation, revealed by the Guardian, indicated that in the most rural areas of England, more than half of all affordable homes are built on developments of this specific size. Housing experts warned that removing the requirement for on-site delivery would have a major impact on these regions. The federation estimated that the proposed rule change could result in a loss of 32,000 affordable homes over the next decade.

Data from the consultation showed that of the 910 people and groups who responded, 41% were strongly opposed to the measure, compared with just 18% who were strongly in favour. The government document acknowledged that there was significant opposition across stakeholder groups. It stated that the decision not to proceed reflected concerns that the change could have a detrimental impact on the manifesto commitment to deliver the biggest increase in social and affordable housebuilding in a generation. The government also cited the need to strengthen planning obligations to ensure new developments provide more affordable homes.

Kate Henderson, chief executive of the National Housing Federation, described the decision as extremely positive. She noted that the government had listened to the social housing sector and decided against removing on-site requirements. Henderson said the move would safeguard a critical route for delivering social homes in rural areas, ensuring that genuinely affordable housing is built where people need it across the country.

Despite this reversal, ministers remain keen to relax regulations for private sector builders in other areas. Moves announced on Monday included instructing councils to adopt a default yes approach to housing developments located within a reasonable walking distance of well-connected train and tram stations. Angela Rayner, the housing secretary, stated that the government needs these homes and has already seen nearly 400,000 new homes complete since coming into office. She highlighted a 15% increase in housing starts and emphasised the need to get planning through as quickly as possible while ensuring infrastructure is delivered alongside the housing.

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**Original URL:** https://stockmark.it/ministers-drop-plan-to-relax-affordable-housing-rules-after-negative-r/
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