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Labour councils urge Jenrick to rethink Section 106 deferral guidance
Labour-run councils in London have written to housing secretary Robert Jenrick to urge him to rethink guidance which says that developers may delay affordable housing contributions during the coronavirus pandemic.
The letter (below), signed by leaders and housing-related cabinet members at 21 local authorities, said affordable housing obligations “need to remain a national priority and must not be deferred”.
Government guidance issued earlier this month advised councils to consider letting some developers defer their Section 106 and Community Infrastructure Levy (CIL) obligations to support housebuilding while the pandemic is ongoing.
Section 106 and CIL are conditions built into planning permissions to ensure that a portion of profits made through development are channelled into benefiting the local area.
The former is usually delivered in the form of affordable housing that is then purchased by social landlords – although in-lieu payments, which can be used for new homes or other public services such as education and transport, are sometimes agreed. Last week housing minister Christopher Pincher confirmed that this would include affordable housing obligations but said it would be up to councils to decide whether to apply the deferral.
CIL is a charge paid by developers designed to fund the roads, schools, doctors’ surgeries and parkland needed to support new housing.
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The councils’ letter said: “History has shown housebuilding contributes greatly to economic recovery and better housing supports better health and well-being.
“However, as representatives of councils across London, we have significant concerns that some of the measures announced could slow down the building of much-needed affordable homes.
“The COVID-19 pandemic has disproportionately hit the poorest communities and shone a light on existing housing inequalities – with the homeless and overcrowded families at significant risk.
“This has reiterated the importance of the delivery of much-needed affordable homes.”
It added: “In order to support the sector and continue housebuilding, we urge your government, rather than relaxing requirements for affordable housing contributions and infrastructure payments, to instead support social and affordable housebuilding by expanding the grants for social housebuilding.”
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The National Housing Federation, the Chartered and Institute of Housing and PlaceShapers have already warned that the guidance must not hamper the delivery of affordable homes.
Mr Jenrick has insisted that the guidance “does not mean that there’s an impact in the longer term upon social infrastructure or affordable homes” but that it would give small and medium-sized builders “breathing space in the weeks and months ahead”.
The councils’ letter also asked that ministers “rethink and relax additional restrictions” to affordable housing delivery such as First Homes, the Housing Delivery Test and the Right to Buy.
