Affordable housing 'motivator' for re-starting regen
Affordable housing will be the ‘key area for renegotiation’ in government plans to kickstart stalled housing schemes.
The impact assessment for the government’s consultation on renegotiating section 106 deals, which was published yesterday, reveals civil servants expect affordable housing to be the primary motivator for getting developments off the ground.
Section 106 deals are negotiated between developers and local authorities to ensure new development include element of affordable housing, infrastructure or community facilities.
The government proposed that local authorities and developers should be able to renegotiate section 106 deals made before April 2010, in a bid to get homes built.
Of the 1,411 sites on hold as of June 2012, 52 per cent were granted planning permission before April 2010.
‘Renegotiation is likely to focus on affordable housing provision, as it is this element that makes up the bulk of section 106 agreements,’ the consultation document said.
‘Where agreement can be reached on a lower amount of provision, this could be perceived as a reduction in the amount that the section 106 originally provided. However, this must be balanced against the fact that a number of section 106 agreements agreed prior to April 2010 may never come forward, and therefore we are unlocking development based on current market conditions.’
The document also reveals that the department expects an additional cost to local authorities because of the administration needed for new deals.