Communities to see how housing developers cash benefits them thanks to new planning rules

2 Sep 2019 12:17 PM

Local people will be able to see how every pound of property developers’ cash, levied on new buildings, is spent supporting the new homes their community needs, thanks to new rules that came into force yesterday (1 September 2019).

Builders already have to pay up for roads, schools, GP surgeries and parkland needed when local communities expand – in 2016 to 2017 alone they paid a whopping £6 billion towards local infrastructure helping create jobs and growth.

Yet before yesterday, councils were not required to report on the total amount of funding received – or how it was spent – leaving local residents in the dark.

New rules will mean councils will be legally required to publish vital deals done with housing developers so residents can see exactly how money will be spent investing in the future of their community.

Housing Minister Rt Hon Esther McVey MP yesterday said:

The new rules coming into force today will allow residents to know how developers are contributing to the local community when they build new homes - whether that’s contributing to building a brand-new school, roads or a doctor’s surgery that the area needs.

The reformed Community Infrastructure Levy (CIL) rules will help developers get shovels in the ground more quickly, and help the government meet its ambition to deliver 300,000 extra homes a year by the mid-2020s.

The rules are designed to support councils and give greater confidence to communities about the benefits new housing can bring to their area.

Further information

New planning practice guidance was also published yesterday, which seeks to further simplify advice on the CIL regime, helping communities and developers understand what is required.

Councils will be required to publish an annual report on the all the CILagreements entered into with developers from December 2020.

The regulations make it faster for councils to introduce the CIL in the first place – so areas can benefit from getting the infrastructure they need in good time.

Restrictions will also be eased to allow councils to fund single, larger infrastructure projects from the cash received from multiple developments, giving greater freedom to deliver complex projects at pace.

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