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There are two main approaches to building affordable housing through the planning process.
The first is the mandatory model which requires that a number of affordable homes are included in developments as a condition of planning approval. The number of potential affordable homes developers are obliged to build is determined by either negotiated agreements made between a developer and planning authority during the planning assessment process, or fixed requirements specified as a proportion of housing or development value.
The second approach is the voluntary incentive model, where new affordable housing is encouraged by reducing costs for developers.
Types of incentives include: …