Examines the lack of precise criteria for ascertaining the amount of affordable housing to be provided as imposed on land developers by the planning process, focusing in particular on affordable housing provided as part of sheltered housing for the elderly. Presents a critical study of the planning and legal basis for affordable housing with reference to PPG3, Circulars 13/96 and 6/98 and emphasises that local authorities must translate the above national planning guidance into their development plans if they are to negotiate affordable housing successfully. Analyses in detail the planning appeal decision "McCarthy and Stone (Developments) Ltd v Poole BC" (QBD [2001] JPL 499)where the developer's (M) claim that a site designed to hold 64 sheltered housing apartments was not substantial and not suitable for affordable housing was dismissed. Concludes that there are now sufficient precedents to justify councils seeking to negotiate an element of affordable housing in sheltered housing schemes on suitable sites. New Draft Circulars on both planning obligations and affordable housing should be published in 2003 and the conditions for the provision of affordable housing on sheltered housing and other developments will certainly be affected. Planning appeal decisions can be obtained from Compass t +44 (0)1452 835820. Selective decisions may be viewed at www.dcservices.co.uk.