Kit Malthouse – Housing Minister – has recently announced changes to developer contributions. This will increase the rate of homebuilding as well as make the overall system simpler. Currently builders pay through developer contributions (Community Infrastructure Levy and Section 106) for the schools, parkland, GP surgeries and roads needed to sustain the amount of new residents. However, Malthouse suggests that these current measures are “confusing and unnecessarily over-complicated.” He further explained that the new rules will allow communities to know the exact amount developers are paying for infrastructure in their area.
The changes are intended to help developers start work quicker, with the government looking to meet its current target of creating 300,000 homes a year by the mid-2020s. Councils will also be required to report any deals done with developers and show how the money will be spent. The aim is that residents will be included in every step taken to ensure that their local area is ready for the new housing.
“Communities deserve to know whether their council is fighting their corner with developers – getting more cash to local services so they can cope with the new homes built.
The reforms not only ensure developers and councils don’t shirk their responsibilities, allowing residents to hold them to account – but also free up councillors to fund bigger and more complicated projects over the line.
The certainty and less needless complexity will lead to quicker decisions – just another way we’re succeeding in meeting our ambition of building 300,000 homes a year by the mid-2020s.”
Kit Malthouse, Housing Minister
The government has also said that these new measures would make it faster for councils to introduce the Community Infrastructure Levy in the first place. Restrictions will also be eased to allow councils to fund single, larger infrastructure projects from the money received from multiple developments.
At ethical partnership our team of planners are involved in delivering a wide range of housing, manufacturing, rail, mixed use, retail, sport, logistics and energy-related developments across the UK. We offer a wide range of services; from site appraisal, due diligence and preparing and submitting planning applications, through to master planning, neighbourhood planning and community consultation. We hope that these changes outlined will enable communities to be more involved with the planning process, as well as provide developers and councils alike with an easier and more productive system to work to. For more information about this topic or further work that we can offer, contact us. You can also reach us on Twitter and LinkedIn to keep up-to-date with what we are up to.