Government introduces changes to help small builders

Posted 10/12/2014

Small developments have recently attracted much interest due to the varying requirements of local authorities for various payments and a contribution towards affordable housing. In a recent review of the statutory guidance the government has now exempted various developments from these requirements. Thus no contributions for general expenditure within an area for open space or sports facilities, for example, can now be sought for developments of 10 houses or less with a combined floor space of less than 1000 sq. m.

Similarly no affordable housing contribution can be sought in similar circumstances, although in rural areas a local authority can adopt a lower threshold of 5 but can then only seek a commuted payment for developments of between 6 and 10 houses, with any payment being deferred until the end of the project.

Self build projects and extensions to existing dwellings are also exempt from the requirements to make contributions.

So what should you do if you are in this situation?

If the decision has not yet been taken and the section 106 planning obligation has not yet been completed, you should seek an immediate review and seek deletion of the requirements. Local authorities are already agreeing this.

If planning permission has already been granted and the section 106 completed, you can make a new application if the development has not been commenced. In those circumstances the new application will need to make it clear that no contribution will be offered.

Depending upon the circumstances it might be possible to apply to vary an existing permission where some of the development has already been undertaken, but each development would need to be looked at on an individual basis.

For individual advice, please contact Bob McGeady on 07714 281254 or email bob.mcgeady@ashtonslegal.co.uk