Ministerial Statements and reduced affordable homes obligations
In November 2014 a Written Ministerial Statement from the government introduced significant changes to section 106 and affordable homes obligations for small-scale developers.
On the 28 November Brandon Lewis, Minister of State for Housing and Planning, wrote:
Due to the disproportionate burden of developer contributions on small-scale developers, for sites of 10-units or less, and which have a maximum combined gross floor space of 1,000 square metres, affordable housing and tariff style contributions should not be sought.
The intention is that by reducing the construction costs of small-scale new build housing, it will help increase housing supply. Lewis MP’s statement assumed that all Councils should now adopt this position when determining planning applications.
However these reforms have led to an uncertainty of the weight afforded to a Ministerial Statement when determining planning applications, with many Councils challenging these section 106 changes. The reforms were introduced via an update to the National Planning Practice Guidance (PPG) but the National Planning Policy Framework (NPPF) remained unchanged.
As such, some local planning authorities view the Statement as just advisory guidance, in the absence of any amendment to the NPPF and the existence of evidence-based, local plan policy, which may justify differing housing contributions.
Our research has found an uncertainty and piecemeal approach amongst Councils when adopting these changes. This is evident with Reading and West Berkshire Councils who have launched a Judicial Review into the Ministerial Statement.
Therefore, the appropriate weight attributed to this Ministerial Statement and its implications on residential development will require research, dialogue and negotiation from a planning professional on a case-by-case basis to ensure the best route of success for our clients.
View the Ministerial Statement in full here:
If you wish to discuss your project with one of our planning consultants please contact us on 0808 164 1288 for a no obligation conversation.
*****All information within this article is correct 6 February 2015 – Please consult with a professional before proceeding with any potential works.
