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      Good News for Developers? The Affordable Housing Contributions (Ten Unit Threshold) Bill 2014-15

      25 November 2014 by Leon Pascal

      Leon Pascal
      London

      The Affordable Housing Contributions (Ten Unit Threshold) Bill 2014-15 (the ‘Bill’) is expected to have its second reading in the House of Commons on 06 March 2015.

      At present, local authorities in England can, by way of an agreement under Section 106 of the Town and Country Planning Act 1990, compel developers to build (amongst other things) a certain amount of affordable housing on a site by requiring a Section 106 Agreement to be in place before granting planning permission. Affordable housing is a generic term covering shared ownership, social rented and affordable rented properties.

      Many developers, particularly on smaller developments, find that it is difficult to supply social housing in this way as it does not deliver ‘economies of scale’. In addition, the stigma that can be attached to affordable housing by the public can have a knock-on effect on the saleability of adjoining, non-social housing properties built on a site.

      As currently proposed, the Bill would prevent local authorities from imposing social housing obligations in a Section 106 Agreement on developments of fewer than ten homes.

      Supporters of the Bill are suggesting that this small change in the law could encourage developers to acquire land from landowners, build more homes, provide more jobs and really kick-start the economy. Critics, on the other hand, argue that supplies of affordable housing would dry up and, as the open market is already failing to provide enough homes that people on modest salaries can buy or rent, will lead to ghost towns and villages across the country.

      We will, of course, keep you updated as the Bill progresses through Parliament.

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      Fisher Jones Greenwood is the trading name of Fisher Jones Greenwood LLP, a Limited Liability Partnership authorised and regulated by the Solicitors Regulation Authority and registered in England ( Number: OC305854 ). A list of members is available for inspection at the registered office at Charter Court, Newcomen Way, Colchester Business Park, Colchester, Essex CO4 9YA

      We are open for business and working remotely

      Here at Fisher Jones Greenwood Solicitors we would like to reassure all our existing and future clients that even in these uncertain and difficult times we are able to assist you with your current and future legal requirements.

      Like so many others, we are constantly monitoring and acting on Government advice and guidelines and as such our offices are temporarily closed to the public. You may, if you wish, visit our offices to post any correspondence and documents through letter boxes.

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      Finally, everyone at FJG would like to wish you, your families and your colleagues well throughout this current crisis.

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      Managing Partner