Planning,
21 August 2009
Landlords have called for the private rented sector (PRS) to be exempt from affordable housing contributions under section 106.
A review for the DCLG last year led by Julie Rugg of the University of
York centre for housing policy said the PRS should expand to help meet
demand for homes.
The government has since published a response announcing that the Homes
and Communities Agency (HCA) will play a key role in encouraging the
sector's growth.
But the Residential Landlords Association argued that section 106
contributions are stifling investment and private rental should be seen
as an alternative to affordable housing.
Secretary Richard Jones said: "You should not be loading PRS
developments with costs. Such developments are going to be catering for
the affordable market. There are private landlords out there who want to
build but the section 106 costs are standing in the way."
But the HCA rejected the claims. Head of new business and economics
Steve Carr said: "We are very clear that our private rent initiative is
about expanding market rental. It is not a substitute for affordable
housing.
"However, by providing more choice PRS housing can help unlock
mixed-tenure schemes and alleviate pressure in the wider market."
