The government has announced its intention to introduce new rules for the way housing developers help to fund infrastructure.
Image: Ceebeestock/Adobestock
Housing Minister Kit Malthouse MP has announced that the rules are to be simplified, so that communities know exactly how much developers are paying for infrastructure in their area.
Builders already have to pay for roads, schools, GP surgeries and parkland that is needed so that areas can cope with the influx of extra residents. Councils will be required to report the deals done with developers, and set out how the money will be spent, enabling residents to see every step taken to secure their area is ready for new housing.
The government says that the changes will also help developers get shovels in the ground more quickly.
Minister of State for Housing Kit Malthouse MP said: “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.”
Commenting on the announcement, Jason Lowes, Partner in the planning team at Rapleys said: “Transparency is clearly at the heart of the government’s proposed shake-up to Section 106, and no-one could object to anything that improves clarity and consistency in the planning system. Indeed, this move could have real benefits for both developers and local communities.
“Firstly, the proposed reforms may help to communicate far more powerfully the benefits of development to local communities – something which has hitherto often been something of a sticking point. Very often the message in the public domain is about the negative impacts of development rather than the positive benefits that new development, when well-planned and designed, can undoubtedly deliver for communities.
“At the same time, developers themselves will welcome greater clarity over how their contributions are spent which, up to now, has been a source of concern for many. In some cases, Local Authorities are often unable to justify the s106 amounts they initially request, when these are subjected scrutiny, and often this lack of justification for the mitigation amounts requested can jeopardise the feasibility and therefore deliverability of development schemes. Hopefully, the proposed changes will help to improve things if and when implemented.”
Developers were charged £6 billion in contributions in 2016/17. Councils have previously not had to report on the total amount of funding received or how it’s spent.
