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

This research aimed to identify: (1) how S106 was being used in very different market conditions and whether it could still work to deliver sufficient affordable housing; (2) how preparations for new policies that wpuld affect affordable housing delivery, such as the Community Infrastructure Levy (CIL), had been altered by the recent financial crisis; (3) what alternative approaches were being considered or used for the delivery of affordable housing.

Over recent years, an increasing proportion of new affordable housing had been secured through Section 106 of the Town and Country Planning Act 1990, which allowed local authorities to seek cash or contributions in kind from developers to mitigate the impact of development. Housebuilders agreed, 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 had led to a considerable reduction in the output of market housing. 

This research aimed to analyse the impact on the delivery of affordable housing and to explore local authority responses. It also aimed to explore how local authorities were 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), allowing local authorities in England and Wales to raise funds from developers undertaking new building projects in their area. The money could be used to fund a wide range of infrastructure 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