Developers to pay for schools and hospitals
Radical reforms to be proposed by ministers would unlock extra money for local infrastructure
Developers and landowners will be required to pay more towards building schools, hospitals and local infrastructure under a major government shake-up of the planning system. Robert Jenrick, the Housing Secretary, will this week propose a new system of contributions from developers that will require them to hand over more of the profits generated from rising land values. Mr Jenrick yesterday outlined proposals for a new zonal planning system.
DEVELOPERS and landowners will be required to pay more towards building schools, hospitals and local infrastructure under a major Government shakeup of the planning system.
Robert Jenrick, the Housing Secretary,
will this week propose a new system of contributions from developers that will require them to hand over more of the profits generated from rising land values.
The Daily Telegraph understands that the plans involve overhauling Section 106 agreements and the Community Infrastructure Levy – the two primary mechanisms through which planning authorities seek to reclaim money for local communities.
Yesterday, Mr Jenrick outlined proposals for a new zonal planning system, which would see new homes, hospitals, schools, shops and offices given an automatic “permission in principle” across swathes of the country.
Under the changes, unveiled in an article for The Sunday Telegraph, councils would designate land according to three zones – “growth”, “renewal” and “protection” – with developers given permission in principle in the former.
Mr Jenrick said the existing system has been a “barrier” to building affordable and family homes, with the average standard housing development taking five years.
At present, developers are often required to enter into Section 106 agreements with local planning authorities which can require them to make a financial contribution to specific infrastructure projects for a community. Some councils calculate what they will charge based on the number of bedrooms in a new-build home.
Introduced in 2010, the Community Infrastructure Levy is a tariff calculated on the total floor space or number of new dwellings in a development.
The Telegraph understands that the plans for a shake-up, which are due to go out to consultation this summer, will also include the creation of new development corporations, which will see powers over planning permission transferred from local authorities. The new bodies would be able to buy land using taxpayers’ money, grant planning permission, then sell the land to developers at a profit, with all money raised being used for public benefit.
However, a senior Government source stressed last night that development corporations would only play a limited part in a much wider reform of the planning system.
The Government believes its reforms could cut the time it takes for a standard housing development to pass through the planning system by up to two years. Under the proposed zonal system, developers would be given “permission in principle” in growth areas, with full consent provided once the council has confirmed the design is in line with local development plans.
All proposals would also be checked against local design codes, which would set out the types of buildings that are acceptable in each area.
Areas marked for “renewal” would largely encompass brownfield and urban sites, with ministers consulting on how a similar “permission in principle” could apply. Protected areas will include green belt land and areas of outstanding natural beauty.