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Planning Green Paper Proposes News Residential Taxes

LONDON-There's a double whammy of housing taxes ahead, according to one expert on affordable housing. The government's Planning Green Paper proposes a new tariff system while retaining the existing section 106 agreements and affordable housing requirements.

By Charlie Jacoby | Updated on March 04, 2002

LONDON-The government’s Planning Green Paper will further tighten the noose on an already scarce resource. This will arrest much needed affordable housing development schemes across the country. These are the conclusions of GVA Grimley planning partner Nick de Lotbiniere–but London Mayor Ken Livingstone has little sympathy with developers.

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.’

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