Template DocumentsBest PracticeLinked DocumentsGot a QuestionGlossary
back to questions

Will affordable housing be a component of the Community
Infrastructure Levy (CIL)?

Introduction

Following the withdrawal of the Planning Gain Supplement (PGS) proposal, the Government have been sponsoring the Community Infrastructure Levy (CIL) as a better mechanism for providing necessary infrastructure from new development.  Implementation of CIL is coming forward through the Planning Bill.

DCLG’s documents The Community Infrastructure Levy (August 08) Web link >> and Common Starting Points (p12) for Section 106 Affordable Housing Negotiations (July 2008) Web link >> provide guidance on the CIL proposals which would allow local authorities to opt to replace wider S106 planning obligations with a standard charge.

Chapter 5 of CLG, Common Starting Points for Section 106 Affordable Housing Negotiations (2008) sets out proposals as to how planning obligations could be reformed following the introduction of CIL.  It announces the publication of new research on the value of planning obligations in England and on a possible ‘common starting point’ for negotiations on affordable housing, and sets out the steps the Government will take to protect levels of affordable housing delivered through planning obligations.

The Government’s preference is that negotiated planning obligations should continue to be used to enable affordable housing to be delivered on site, in order to ensure that there is sufficient affordable housing to achieve genuinely mixed communities. The Government therefore does not initially intend to include affordable housing within the scope of what may be funded from CIL. However, affordable housing is included within the definition of infrastructure in the Planning Bill so that affordable housing could receive CIL funding if evidence shows that this is necessary.

The proposed CIL could have further implications for the delivery of affordable housing and authorities will need to keep abreast of emerging government guidance on its implementation.

  1. How can effective negotiation with developers be ensured (including working on larger projects)?
  2. What will the developer's financial considerations be when negotiating planning obligations?
  3. How should scheme viability be assessed to ensure the affordable housing requirement on a given site is appropriate and deliverable?
  4. How should the uncertainties of grant funding be overcome in agreeing the provision of affordable housing?
  5. What is considered best practice in resolving valuation/viability disputes?
  6. When is it appropriate to use commuted sums or developer contributions for off site provision and how should they be calculated?
  7. What is considered best practice for the preparation and use of planning obligations through Section 106 agreements, to secure affordable housing?
  8. When is it appropriate to use planning conditions in securing affordable housing?
  9. Will affordable housing be a component of the Community Infrastructure Levy (CIL)?
  10. What is considered best practice in selecting and partnering with Registered Social Landlords (RSLs)?