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The impact of the recent financial crisis on planning for affordable housing in England

The impact of the recent financial crisis on planning for affordable housing in England – local authority responses and future pathways. This research will identify, (1) how S106 is being used in very different market conditions and whether it can still work to deliver sufficient affordable housing; (2) how preparations for new policies that will affect affordable housing delivery, such as the Community Infrastructure Levy (CIL), have been altered by the financial crisis; (3) what alternative approaches are being considered or used for the delivery of affordable housing.

Over recent years an increasing proportion of new affordable housing has been secured through Section 106 of the Town and Country Planning Act 1990, which allows local authorities to seek cash or contributions in kind from developers to mitigate the impact of development. Housebuilders agree, as part of their planning permission, to provide a proportion of affordable homes on their sites, or to pay for them elsewhere. 

This system closely ties together the provision of market and affordable homes. The downturn in the property market has led to a considerable reduction in the output of market housing. 

This research aims to analyse the impact on the delivery of affordable housing and to explore local authority responses. It also aims to explore how local authorities are planning for the future in this unpredictable market and rapidly changing policy context.

Capturing planning gain – The transition from Section 106 to the Community Infrastructure Levy

The Community Infrastructure Levy came into force in April 2010 (DCLG, 2011a). It allows local authorities in England and Wales to raise funds from developers undertaking new building projects in their area and the money can be used to fund a wide range of infrastructure that is needed as a result of development. This research for the RICS explores the issues arising in the transition to the new system.

Capturing planning gain – The transition from Section 106 to the Community Infrastructure Levy - Read More…

CCHPR Contact

Funder

Royal Institution of Chartered Surveyors

Project Start Date

27th May 2011