Speaking at the Henry Stewart conference on affordable housing, De Lotbiniere argued that the draft legislation will fail to alleviate the shortage in affordable housing. He believes the proposals will exacerbate the problem, as developers will cease activity rather than face what is in effect a 'wholly unrealistic' double taxation.

De Lotbiniere said: 'At first glance, it seems that the introduction of a new standard tariff, to be paid to the local council in return for planning permission, will replace section 106 agreements. For the most part, developers welcome the greater certainty a tariff system represents. Closer reading of the proposals, however, reveals that this system could be supplemented by further requirements: current section 106 agreements may be retained and the pre-determined percentage of affordable housing each development is currently to provide will also increase. Faced with what amounts to a double tax, there will be a swift stagnation of the development market precisely at a time when there is a significant shortfall in affordable housing and development is most needed.'

He continued: 'The urgent need for more affordable housing is recognised by all. While the tariff system itself is to be welcomed, if this is combined with the retention of section 106 agreements and also increased affordable housing requirements, it will represent a hefty slap in the face for developers. Instead, the tariff should replace section 106 entirely and developers should be allowed to choose whether to pay the tariff or include affordable housing units on a particular site, thereby avoiding additional levies. By penalising the industry too heavily, the government risks seeing its plans backfire.'