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New rules which make the way housing developers stump up money for infrastructure simpler and more transparent are being brought in, the government confirmed today.Builders already have to pay for roads, schools, GP surgeries and parkland that is needed so that areas can cope with the influx of extra residents.Housing Minister Kit Malthouse MP announced that confusing and unnecessarily over-complicated rules are being simplified, so that communities know exactly how much developers are paying for infrastructure in their area.Councils will be required to report the deals done with developers, and set out how the money will be spent enabling residents to see every step taken to secure their area is ready for new housing.The changes will also 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.
Minister of State for Housing Kit Malthouse MP said:
“Communities deserve to know whether their council is fighting their corner with developers – getting more cash to local services so they can cope with the new homes built.
“The reforms not only ensure developers and councils don’t shirk their responsibilities, allowing residents to hold them to account - but also free up councillors to fund bigger and more complicated projects over the line.
“The certainty and less needless complexity will lead to quicker decisions, – just another way we’re succeeding in meeting our ambition of building 300,000 homes a year by the mid-2020s.”
Developers were charged £6bn in contributions in 2016/17, helping to unlock jobs and growth. However, councils have previously not had to report on the total amount of funding received or how it’s spent.
They will not only make it simpler for communities to know what the money has been spent on, but also make it faster for councils to introduce the Community Infrastructure Levy in the first place – so areas can benefit from getting the infrastructure they need in good time.
Restrictions will 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.
This is just the latest measure to support councils and give greater confidence to communities about the benefits new housing can bring to their area.SEE ALSO - Buy-Refurb-Rent - struggling to find dealsUP NEXT - Low budget room refurbishmentDON'T MISS - How to maximise the lay-out of this property?NOW WATCH:
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Buyers of new builds already pay a premium to cover S.106/CIL.
The target 300k new homes pa is about double the current private sector new builds - so will be challenging to achieve as developers will only build what they believe they can sell quickly.
Does make me wonder what our Govt (local and central) actually do with all the TAX that they are collecting off us.....
its actually paid for by the landowner in reality as they will get less for the land.
And to think that the majority state that it is "greedy landlords" pushing up house prices! The Government/Councils are and have been, living off of the backs of homeowners for years and yet no one seems to raise an eyebrow !
it doesnt push up prices, bur lowers land values
Not around here in the South West - it's the new build sites that are setting the price, fuelled by help to buy. In short, the cost of development rises due to the burden of extra taxes and rip off connection charges then in turn the Government lends the money so people can buy the houses that are so expensive due their greed in the first place!
maybe but if the cost of development including 'infrastructure' rises and sales price is constant, then land values go down (all other things being =).