CIL Starts to Bite

The Government has re-affirmed its commitment to CIL through revised Guidance issued in December 2012.

The NPPF makes clear the need for ‘competitive returns’ to both ‘willing’ landowners and developers. Helpful clarification on the complexities of landowner return, based on market dynamics and development plan production to enable land to be released for development, is covered within both the Harman Report (June 2012) and RICS Guidance, Financial Viability in Planning.

The ‘up-front’ testing of viability and the infrastructure needed to support planned growth is central to the CIL process and it is intended to provide certainty for developers over infrastructure costs.

Melys Pritchett (Associate Director, London) comments: “Achieving a viable CIL rate is important in achieving delivery and a smoother planning process; otherwise affordable housing delivery is likely to suffer. A fundamental aspect of this is not only a robust viability appraisal but also sound infrastructure planning so that a credible level of site-specific Section 106 may be factored in when setting the CIL rate”.

Savills has been acting for the HBF and other developers and landowners, to make representations to identify viable rates of CIL.

CIL Statistics

• 10 Charging schedules adopted

• 15 at Examination

• 53 to come forward in 2013

• 127 to commence in 2013

• Residential rates £0 - £575 per sq. m

• Averaging at circa £100 per sq. m

Taken from
Spotlight: National Planning Policy Framework - One Year On