Section 106 Affordable Housing Contribution

Houseproud25

We have recently applied to our local Council for planning permission to build a new home on a plot of land. The Council have told us we will have to pay approx a £20,000 contribution towards affordable housing before they will grant the permission to build. We are first time self builders not developers, has anyone faced similar circumstances?

Surrey_EA

My understanding was that single unit self-builds were exempt from section 106 agreements, but this may vary from council to council.

Have a read of this:http://www.nacsba.org.uk/images/documents/nacsbadocs_201508rv_thesimpleguide_s106.pdf

ReadingTim

Surrey_EA wrote: »

My understanding was that single unit self-builds were exempt from section 106 agreements, but this may vary from council to council.

Have a read of this:http://www.nacsba.org.uk/images/documents/nacsbadocs_201508rv_thesimpleguide_s106.pdf

You might want to read the NB bit in bold on page 2 (my bold):

In July 2015, Reading and West Berkshire councils sought to quash the exemption policy for S106 fees and a High Court judge found in favour of the councils. In August, the Department for Communities and Local Government (DCLG) announced that it would try to overturn the decision.

However, the guidance also suggests exemption is based on floor space, so it depends on the size of the OP's home as to whether they'd be exempt. It's also worth noting that s.106 agreements aren't just in respect of affordable housing - they're a contribution towards the infrastructure required for more housing, and therefore more people, so can be for schools, roads, sewers etc - all sorts of things really! But yes, it's common, and a "nice little earner" for most councils.

Surrey_EA

ReadingTim wrote: »

You might want to read the NB bit in bold on page 2 (my bold):



However, the guidance also suggests exemption is based on floor space, so it depends on the size of the OP's home as to whether they'd be exempt. It's also worth noting that s.106 agreements aren't just in respect of affordable housing - they're a contribution towards the infrastructure required for more housing, and therefore more people, so can be for schools, roads, sewers etc - all sorts of things really! But yes, it's common, and a "nice little earner" for most councils.

I did see that bit, it will be interesting to see whether the DCLG have any success getting the recent judgement overturned.