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CIL Latest Research & FindingsIan Stevens, Planning

Intro

Overview- CIL PAS Event

National Overview

South West Focus

Key Issues

Emerging Trends

Conclusions

CIL Progress

CIL- All Stages Map of England & Wales

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Savills CIL Map

ImplementedCILs

Progress on CIL Implementation (England & Wales)

Source: Savills (as at 9 January 2015)

South West - CIL Progress

7 Implemented

7 Submitted for Examination

2 Draft Consultation

10 Preliminary Draft Charging Schedule

4 Preparing Evidence

6 Not Started

Correct as at 12 January 2015

83% of Local Authorities engaged with CIL in the

South West

South West – Implemented CIL Rates

Charging Authority Stage of Charging Schedule Residential Rate (£/m2)

Bristol Adopted £50 – Outer Bristol

£70 – Inner Bristol

Plymouth Adopted £0 – City Centre and Waterfront

£30 – Everywhere else

Mid Devon Adopted £40 – Everywhere

Exeter Adopted £80 – Everywhere

Poole Adopted £150 – Residential Zone A

£100 – Residential Zone B

£75 – Residential Zone C

Taunton Deane Adopted £0 – Taunton Town Centre

£0 – Wellington, inc. urban extensions

£70 – Taunton, inc. urban extensions

£125 – Outside Taunton and WellingtonTeignbridge Adopted £70 – Newton Abbot, Kingsteignton, Kingskerswell

£85 - Dawlish

£125 – Tegnmouth, Chudleigh, Bovey Tracey

£150 – South West Exeter

£200 – RuralPurbeck Adopted £180 – Swanage / The Coast

£100 – Wareham / Purbeck Rural Fringe

£30 – Purbeck Rural Centre

£10 - Upton

CIL in Practice - Exeter

1 December 2013

Single rate for residential was £80 per sq.m

Now £90.80 based on indexation

Comprehensive Regulation 123 List, covering:

o Education and Youth

o Sporting and Leisure Facilities

o Transport Infrastructure

o Off-Site Broadband Infrastructure

o Library and Cultural Facilities

o Community Care

o Open Space

o Community Facilities

o European Designated Habitats

Key Issues

There are trade-offs between the viability of CIL, Section 106 and affordable housing policy

Source: Savills

Local Context Needs to be Considered

Historic delivery

Historic Section106 achievement

Local Plan policy costs

Benchmark land value

Land supply characteristics and profile

Viability Buffer

Local Market Evidence is Needed

Source: Savills

“competitive return”

Policy choices have a cumulative impact on viability

Source: Savills

Local policies must be assessed to establish an appropriate Benchmark

Land Value

Avoiding ‘Double Dipping’

Explicit policy on the balance between Section 106 and CIL

Draft regulation 123 list – what will be excluded from Section 106 funding?

Does the Regulation 123 list support the delivery of the Plan?

The proposed changes to the regulations will tighten the restriction on pooling of Section 106

Flexible to give Charging Authorities scope to change what CIL is spent on

Must be allowed for within the viability appraisals

Risk to Delivery?

Commissioned by the Home Builders Federation

Charging Authorities have seen a 49% fall in the number of new residential planning consents in the 12 months post-CIL

Of the four Authorities where CIL was implemented pre-April 2012, none failed to meet their annual housing target in the year following CIL implementation.

London Mayoral CIL accounted for 94% of CIL Income Receipts in 2013-14

None of the Charging Authorities reporting CIL receipts have spent on infrastructure items on their Regulation 123 Lists

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Risk to Delivery?

Grampian Conditions – who will deliver?

Who will pay? When will infrastructure be delivered?

Emerging Trends

CIL – The Countdown to April 2015

Commissioned by the Home Builders Federation

Looks at the impending Section 106 pooling restrictions that limits Local Authorities’ ability to use contributions to fund infrastructure

Highlights that a limited number of Local Authorities will have a CIL in place by April 2015

Seeks further clarification on the operation of Section 106 in Local Authorities without a CIL Charging Schedule post-April 2015

The Deadline: Focusing the minds of Local Authorities

Restriction on the pooling of Section 106 contributions by LPAs for use towards an infrastructure type or project from 6 April 2015 or implementation of a Charging Schedule (whichever the earlier) –

“At that point, no more may be collected in respect of a specific infrastructure project or a type of infrastructure through a Section 106 agreement, if five or more obligations for that project or type of infrastructure have already been entered into since 6 April 2010, and it is a type of infrastructure that is capable of being funded by the levy.”

CIL Regulations 2010 (as amended) & CIL Guidance 2014 (as amended)

Less than 3 months to go

Engagement is still important

Source: Savills Research (using Hometrack sales value data)

Highestreductions in lower

value areas on account of “viability

squeeze”

Projected Implementation Date (LPAs committed to CIL)

Source: Savills Research (as at 3rd September 2014)

Conclusions

Some authorities have set unviable rates

Delivery of affordable housing should be closely monitored

Early adopters may wish to review rates (Fareham)

CIL must strike a balance and support the development Plan

Plan policies should be adjusted where necessary

Seek consistency to avoid unintended market variations across broader areas

What are the implications?

LPAs need to consider the impact of the April 2015 restrictions on the delivery of infrastructure in their area

Developers and housebuilders should work with LPAs to identify key pieces of infrastructure that are needed for the delivery of housing sites

Section 106 agreements should refer to specific named projects

Further guidance from Ministers is essential to ensure that LPAs have a sufficient Section 106 mechanism in place post-April 2015, as failure to do so will have a significant impact on the delivery of both infrastructure and housing.

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