ian stevens - cil latest research & findings
TRANSCRIPT
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savills.com
CIL Latest Research & FindingsIan Stevens, Planning
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Intro
Overview- CIL PAS Event
National Overview
South West Focus
Key Issues
Emerging Trends
Conclusions
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CIL Progress
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CIL- All Stages Map of England & Wales
Savills - http://www.savills.co.uk/promotions/cil-map.aspx
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Savills CIL Map
ImplementedCILs
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Progress on CIL Implementation (England & Wales)
Source: Savills (as at 9 January 2015)
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South West - CIL Progress
7 Implemented
7 Submitted for Examination
2 Draft Consultation
10 Preliminary Draft Charging Schedule
4 Preparing Evidence
6 Not Started
Correct as at 12 January 2015
83% of Local Authorities engaged with CIL in the
South West
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South West – Implemented CIL Rates
Charging Authority Stage of Charging Schedule Residential Rate (£/m2)
Bristol Adopted £50 – Outer Bristol
£70 – Inner Bristol
Plymouth Adopted £0 – City Centre and Waterfront
£30 – Everywhere else
Mid Devon Adopted £40 – Everywhere
Exeter Adopted £80 – Everywhere
Poole Adopted £150 – Residential Zone A
£100 – Residential Zone B
£75 – Residential Zone C
Taunton Deane Adopted £0 – Taunton Town Centre
£0 – Wellington, inc. urban extensions
£70 – Taunton, inc. urban extensions
£125 – Outside Taunton and WellingtonTeignbridge Adopted £70 – Newton Abbot, Kingsteignton, Kingskerswell
£85 - Dawlish
£125 – Tegnmouth, Chudleigh, Bovey Tracey
£150 – South West Exeter
£200 – RuralPurbeck Adopted £180 – Swanage / The Coast
£100 – Wareham / Purbeck Rural Fringe
£30 – Purbeck Rural Centre
£10 - Upton
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CIL in Practice - Exeter
1 December 2013
Single rate for residential was £80 per sq.m
Now £90.80 based on indexation
Comprehensive Regulation 123 List, covering:
o Education and Youth
o Sporting and Leisure Facilities
o Transport Infrastructure
o Off-Site Broadband Infrastructure
o Library and Cultural Facilities
o Community Care
o Open Space
o Community Facilities
o European Designated Habitats
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Key Issues
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There are trade-offs between the viability of CIL, Section 106 and affordable housing policy
Source: Savills
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Local Context Needs to be Considered
Historic delivery
Historic Section106 achievement
Local Plan policy costs
Benchmark land value
Land supply characteristics and profile
Viability Buffer
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Local Market Evidence is Needed
Source: Savills
“competitive return”
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Policy choices have a cumulative impact on viability
Source: Savills
Local policies must be assessed to establish an appropriate Benchmark
Land Value
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Avoiding ‘Double Dipping’
Explicit policy on the balance between Section 106 and CIL
Draft regulation 123 list – what will be excluded from Section 106 funding?
Does the Regulation 123 list support the delivery of the Plan?
The proposed changes to the regulations will tighten the restriction on pooling of Section 106
Flexible to give Charging Authorities scope to change what CIL is spent on
Must be allowed for within the viability appraisals
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Risk to Delivery?
Commissioned by the Home Builders Federation
Charging Authorities have seen a 49% fall in the number of new residential planning consents in the 12 months post-CIL
Of the four Authorities where CIL was implemented pre-April 2012, none failed to meet their annual housing target in the year following CIL implementation.
London Mayoral CIL accounted for 94% of CIL Income Receipts in 2013-14
None of the Charging Authorities reporting CIL receipts have spent on infrastructure items on their Regulation 123 Lists
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Risk to Delivery?
Grampian Conditions – who will deliver?
Who will pay? When will infrastructure be delivered?
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Emerging Trends
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CIL – The Countdown to April 2015
Commissioned by the Home Builders Federation
Looks at the impending Section 106 pooling restrictions that limits Local Authorities’ ability to use contributions to fund infrastructure
Highlights that a limited number of Local Authorities will have a CIL in place by April 2015
Seeks further clarification on the operation of Section 106 in Local Authorities without a CIL Charging Schedule post-April 2015
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The Deadline: Focusing the minds of Local Authorities
Restriction on the pooling of Section 106 contributions by LPAs for use towards an infrastructure type or project from 6 April 2015 or implementation of a Charging Schedule (whichever the earlier) –
“At that point, no more may be collected in respect of a specific infrastructure project or a type of infrastructure through a Section 106 agreement, if five or more obligations for that project or type of infrastructure have already been entered into since 6 April 2010, and it is a type of infrastructure that is capable of being funded by the levy.”
CIL Regulations 2010 (as amended) & CIL Guidance 2014 (as amended)
Less than 3 months to go
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Engagement is still important
Source: Savills Research (using Hometrack sales value data)
Highestreductions in lower
value areas on account of “viability
squeeze”
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Projected Implementation Date (LPAs committed to CIL)
Source: Savills Research (as at 3rd September 2014)
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Conclusions
Some authorities have set unviable rates
Delivery of affordable housing should be closely monitored
Early adopters may wish to review rates (Fareham)
CIL must strike a balance and support the development Plan
Plan policies should be adjusted where necessary
Seek consistency to avoid unintended market variations across broader areas
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What are the implications?
LPAs need to consider the impact of the April 2015 restrictions on the delivery of infrastructure in their area
Developers and housebuilders should work with LPAs to identify key pieces of infrastructure that are needed for the delivery of housing sites
Section 106 agreements should refer to specific named projects
Further guidance from Ministers is essential to ensure that LPAs have a sufficient Section 106 mechanism in place post-April 2015, as failure to do so will have a significant impact on the delivery of both infrastructure and housing.
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