Britain is continuing to suffer from an economic downturn which has had a critical impact on property and land developments, especially housing. In a belated attempt to again ‘kick-start’ stalled developments,
Communities Secretary Eric Pickles announced on Monday 13th August that there will be a fresh drive to get housing deals up and running and builders back onto mothballed sites by renegotiating financial contributions in Section 106 agreements.
This is good news, but no mention was made of the imminent payments to be made under the Community Infrastructure Levy (CIL) Regulations now being prepared by many Councils.
If you are about to embark on the development or planning process, whether it be a small-scale residential development or a commercial expansion to new large commercial properties it is recommended that you find out or take advice on where the Council are up to with their CIL charging schedule.
(Note: We have produced an informative checklist – see below)
It is imperative that property developers and land owners understand the implications of these changes, which may well affect the bottom line on your development proposals.
Property Developer gets caught out by fees
Linda Wright of PlanitWright, a Town Planning and Development Services Consultancy operating across England and Wales informed Property Aspects Magazine of a recent development that was aborted because of CIL payments.
Linda commented “An Estate Agent property developer client in Wembley got caught out recently by the introduction of the Mayor of London’s Community Infrastructure Levy.
This levy is charged on developments London-wide to help fund strategic infrastructure projects – in this case the Crossrail project.
The charge was actually introduced during the processing of the planning application, with the result that an additional CIL payment was due to be paid, as well as a hefty sum under the Section 106 agreement.
This has resulted in the project being “put on hold”.
Linda reiterated “The requirement to pay all contributions, not just the imminent CIL, is often overlooked when preparing plans for a new project but this needs to be factored into the development economics as to ignore it or underestimate the cost could mean the difference between the success or failure of a scheme”.
Linda has the skills needed to provide the solution to this type of planning issue along with more than 30 years’ experience in the planning industry and an extensive network of specialist associates who can provide additional services to support planning applications and appeals.
Property Developers – Get your CIL Checklist
Linda has prepared a checklist specifically for helping Property Developers on the subject of CIL.
If you would like a copy of her report, please email us at email@example.com
Property Aspects Magazine appreciates the contribution to this article from Linda Wright at planitwright.co.uk