A New Hope: CIL Review sets out a new approach to developer contributions

The much awaited Housing White Paper was published 07/02/2017 along with the CIL report. The report concludes CIL has failed.

Sajid Javid

After numerous and some say menacing reports, the phantom Housing White Paper was finally published on 07/02/2017 along with the CIL review. The Housing White Paper threatens tough action on 'fat cat' developers, particularly rogue one(s).

The CIL report concluded that CIL has failed. Its been divisive, expensive to implement and administer with complex reliefs and exemptions. One trip along this complex and arduous path often lead to immediate imposition of significant CIL Liabilities with limited routes for challenge or recourse.


The New regime of twin tracked: Local Infrastructure Tariff (LIT) and a revamped s.106 will be mandatory going forward. LIT is to be set using a National formula based on local residential values (a m2 charge based upon 1.75% - 2.5% on average sale price new build ) and also applied to commercial properties as a factor of the Residential Rate(s).

Further consultation and detailed announcements expected in the Autumn Budget Statement later this year (possibly episode IX...). But an expected cut off date of 2020 for LPAs to replace their existing CIL charges and all other LPAs to adopt LIT.

In the new paradigm of Combined Authorities (CAs) there is also the ability for these institutions to apply a tariff akin to the current Mayoral CIL to be known as Strategic Infrastructure Tariff (SIT) for major projects.

Rates forecast as £20-£220 across England & Wales. With London Boroughs being £50-£440 per m2.

 

To read the full Housing White Paper click here 

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