Sunday, 30 April 2017

AS2013: Section 106 exemption for small developments

Developments of fewer than 10 units could be exempt from section 106 affordable housing payments, under a package of new planning measures announced by the chancellor today.

New homes bonus payments could also be withheld where declined planning decisions are overturned on appeal.

As revealed by Inside Housing yesterday, George Osborne drew together a number of measures from the national infrastructure plan together with new reforms to produce a package of planning measures.

Section 106 payments are contributions to affordable housing developers must make in order to secure planning permission under the current system.

Mr Osborne announced he would begin consulting on a new 10-unit threshold for developments required to pay these contributions.

In the package of measures, which are aimed at ‘addressing delays, incentivising improved performance and reducing costs for developers,’ the chancellor announced a consultation on introducing a statutory requirement for local authorities to put a local plan in place.

The number of bodies councils are required by law to be consulted over planning decisions could be decreased, also following a consultation.

Councils will also face ‘special measures’- where developers can apply directly to the Communities and Local Government department – where they make fewer than 40 per cent of decisions on time.

This follows a reform introduced in May for councils who make 30 per cent of major decisions in more than 12 weeks. Blaby Council became the first to be placed in special measures as a result last month.

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