Warning over Development Community Levy Threat

Councils’ levies on new developments are being set too high to make the building of affordable housing viable, developers have warned.  Local authorities across the country are in the process of setting their community infrastructure levy (CIL) charges after the publication of the new planning system in the national planning policy framework last month. But developers have said that after CIL is paid, there won’t be enough money left for affordable housing.  CIL is paid by developers to councils to be spent on the community local to the development, on projects such as infrastructure or schools. Affordable homes are still developed through section 106 agreements in most cases.  Stephen Teagle, managing director of affordable housing and regeneration at Galliford Try, said the company had done work earlier this year comparing the historic cost of providing 35 per cent affordable housing on a development with the cost of providing it on top on CIL payments. ‘We found there’s a significant gap between the historic cost and new CIL payments councils are asking for. Something has to give, and what will give is the delivery of affordable housing,’ he said.  Read more on Inside Housing.