The Affordable Housing Cost Cross-Subsidy Ratio measures the extent to which surplus generated from market-sale units is used to cover the cost of delivering affordable housing within a development scheme. In UK property development finance, this ratio is a critical viability tool, allowing developers to demonstrate how private sales contribute to meeting planning obligations for affordable housing. It supports negotiations with local planning authorities, helps assess scheme profitability, and can influence funding structures. A higher ratio often indicates stronger market performance but may also reflect a greater reliance on market sales to meet affordable housing commitments.
This sits beneath Cross-Subsidy & Efficiency, introducing a more specific variant of the measure without changing its core interpretation.
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