Recent government consultations regarding changes to Section 106 (s106) thresholds will have dramatic effects on the planning system. Proposed in the Autumn Statement of 2013 was a change to a 10-unit threshold and a 1,000-square-metre gross floor space threshold for affordable housing contributions through S106 planning contributions.
This proposal, in essence, was aimed at encouraging the development of smaller sites by releasing small-scale developers from a disproportionate burden.
Recent consultation from November 2014 has clarified the new planning permission for exemptions of small development schemes as follows:
- On sites of 10 units or less and which have a maximum combined gross floor space of 1,000 sq m, affordable housing and tariff-style contributions should not be sought.
- In rural areas designated under Section 157 of the Housing Act 1985, which includes National Parks and Areas of Outstanding Natural Beauty, authorities may choose to implement a lower threshold of 5 units or less, beneath which affordable housing and tariff-style contributions should not be sought.
- Further to this, should the 5-unit threshold be implemented, the payment of affordable housing and tariff-style contributions on developments between 6 and 10 units should also be sought as cash payments only and be receivable after the completion of the development.
This guidance is currently still in the process of being implemented, and it is likely that councils will be at differing stages of implementation. If you are planning on undertaking the development of a site, it is imperative to check with the local council as to their current position regarding these new thresholds.
Revised guidance will be published on the Planning Portal website to assist authorities in implementing these changes in due course.
Currently, further information can be found here.