Planning bill 'threatens social homes delivery'

Alex Coxon, Regen.net, 11 December 2007

The bill, which received its second reading in the House of Commons yesterday, advocates the introduction of a new community infrastructure levy, payable by developers to local authorities to fund improved infrastructure.

But the federation is concerned that the introduction of the levy will force councils to accept fixed cash payments rather than negotiating with developers to deliver more social homes, as happens under the current Section 106 system.

The federation also believes that the plan could see social homes "shunted onto cheaper sites", away from local amenities and other housing.

It says this could happen if planning authorities accept the levy instead of requesting provision of social homes within housing developments on higher value land.

"Money that should have been used to tackle the rising tide of housing needs may well be siphoned off for other public infrastructure, to the detriment of new social homes," said David Orr, chief executive of the NHF

"There is a real danger that hard-pressed planning authorities, faced with a choice between cash from the developer or a section 106 negotiation, would rather simply take the money.

"With the country in the grip of a desperate affordable housing shortage, we can't allow social homes to be lost in this way," he added.