Concerns over Watering Down Of Affordable Housing Commitments

Property experts are warning of an affordable housing time bomb in the UK which needs addressing to ensure enough homes are not only built but in the pipeline to cover future demand. Before 2008, local councils were able to stand their ground with regard to social and affordable housing requirements. But as the recession took hold and developers started to withdraw on their affordable housing commitments, councils were held over a barrel. It now seems that a new mechanism introduced through the Growth and Infrastructure Act 2013 is being used by developers to reduce their affordable housing commitments and follows a number of recent cases where the affordable housing requirements were reduced. Read more on the Property Wire website.

Developer Wins Appeal Against Affordable Housing Contribution

A developer of a housing scheme in Oldham won’t have to make a £283,000 contribution towards affordable housing after a planning inspector allowed an appeal because it was no longer economically viable to make the contribution. Oldham Metropolitan Borough Council granted planning permission to developer Tamewater Developments Limited in 2008 for a 46-home scheme. Under the permission, Tamewater was obliged to make four instalments of payments to the council in lieu of the provision of affordable housing. The developer had already made the first payment of £100,000 but applied to have the remaining contributions removed under provisions introduced by the Growth and Infrastructure Act 2013. These provisions allow for applications to be made to vary affordable housing requirements contained in a planning obligation if those requirements make the scheme unviable. Read more on 24dash.

Section 106 Plans Become Law

Plans to allow developers to renegotiate their affordable housing obligations if they believe these are making schemes unviable have become law.  The Growth and Infrastructure Act will allow developers to reopen discussions over section 106 agreements and reduce the number of affordable homes they are providing. During the passage of the bill through parliament the government accepted an amendment introducing a ‘sunset clause’ to end the measure in April 2016, although the government will be able to extend it if it feels it is still necessary. Read more on Inside Housing.

Lords Block Bid To Remove Cap on Councils' Housing Borrowing

The House of Lords has blocked an effort to lift the cap on the amount councils can borrow to invest in housing.  Four peers had proposed amending the Growth and Infrastructure Bill by removing the borrowing cap on local authorities' housing revenue accounts. However, the proposed amendment was defeated after Conservative Lord Ahmad of Wimbledon said "reducing the national deficit remains the priority. From that the government cannot be deterred".  Read more on 24dash.

Time Limit Set On Section 106 Negotiations

The government has agreed to set a time limit on plans to allow developers to renegotiate the affordable housing elements of schemes under the Growth and Infrastructure Bill.  Clause six of the bill will allow developers to renegotiate the affordable housing part of section 106 agreements if they believe the requirements are making the scheme unviable.  The government has now introduced an amendment that means the clause will initially only run until the end of April 2016.  Government minister Baroness Hanham introduced the ‘sunset’ amendment, which was approved by peers.  Read more on Inside Housing.

Growth Bill Prompts Concern over Section 106 Wording

Housing associations have raised concern over the wording of the Growth and Infrastructure Bill warning that it is "unclear" precisely how affordable housing commitments in section 106s will be honoured.  The new Growth and Infrastructure Bill contains a number of planning reforms aimed at streamlining the current system, including cutting back the volume of paperwork required for applications and stopping the misuse of town and village green applications that "undermine planned development".  However, the National Housing Federation (NHF) has concerns about the wording of the Bill regarding section 106s after the Government announced in September it would allow commitments to be renegotiated to get development moving.  Read more on 24dash.