GOVERNMENT MAY ROLL AFFORDABLE HOUSING INTO A NEW CIL REGIME
- 24 Mar
The government is considering rolling affordable housing payments into a new Community Infrastructure Levy (CIL) regime.
At the moment, CIL rates are fixed locally as a percentage of development value and are based on local infrastructure priorities which are not mandatory for councils to put into effect.
According to Gavin Barwell, the Housing Minister, site-specific negotiations over Section 106 payments could be removed to create a centralised fixed tariff in the next budget which will cover all new developments.
Mr Barwell said this while speaking to Inside Housing at the MIPIM property conference in France last week:
"There would be the potential to have a national system that captured infrastructure and affordable housing. The question I would ask people is: would it be better to have a system where people knew up front, 'this is the contribution I'm going to be asked for in terms of infrastructure and affordable housing?"
Last month, the government published an independent CIL review where it recommended a mandatory tariff for all new developments called a Local Infrastructure Tax, based on a centralised methodology, but charged and collected locally. However, a centralisation of affordable housing payments was not recommended.
Planning partner at Montagu Evans, Nick Sharpe said a centralised tax would "bake the affordable housing costs into land values... it is a tax that can't be negotiated away".
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For more details, visit Inside Housing.
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