In the month before CIL is implemented, there is a sharp peak in the number of residential units granted full consent, suggesting that Local Authorities and developers are keen to get sites through before CIL.

This is followed by a sharp drop in consents once CIL is implemented, and in the 12 months following the introduction of CIL, the number of permissions granted never returns 
to the pre-CIL level.

This is in contrast to the national trend which has seen an increase 
of 32% over the same time period, as the impact of the NPPF is felt 
and the housing market recovers from the economic downturn.

Such a disruption to the flow of consents in the Charging Authorities is likely to impact on their future rates of housing delivery.

click on graph below to enlarge

Is CIL a threat to 
housing numbers?

To assess the true impact of CIL on housing delivery it is necessary to look at the number of units completed once CIL is in place.

In the case of the London Borough of Redbridge, in the year following the introduction of CIL, a total of 271 dwellings were delivered; approximately half of the previous year’s delivery and below the Borough target of 760 units per annum.

This trend can also be seen in a number of other Charging Authorities, as all four of the Local Authorities where CIL was implemented pre-April 2012 failed to meet their annual housing target in the year following CIL implementation.

Across the Boroughs sampled, 
10 sites over 50 units (1,100 dwellings) have been granted full permission since CIL was implemented, but have yet to commence, suggesting that 
CIL is having a greater impact on larger residential sites than smaller scale development.

CASE STUDY: Fareham Borough Council

Fareham Borough Council implemented CIL in May 2013. Unlike a number of Charging Authorities, the number of units being submitted in Fareham peaked three months after the introduction of CIL. However, as with a number of Local Authorities, this peak relates to a single application for 168 units that despite securing full permission, a year later, is yet to start on site.

However, unlike the majority of Local Authorities, Fareham has opted to review its Charging Schedule within a year of implementation in order to introduce a zero CIL rate for the new community at Welborne, which is set to provide up to 6,000 homes. An approach that has now been adopted by over 30 Local Authorities, all of whom are choosing to pursue “developer-led delivery” through site specific Section 106 contributions and a zero CIL rate. A move that recognises the increased cost of bringing these sites forward and the need for greater flexibility over the level of planning obligations on developments of this scale.

Taken from
Spotlight: CIL - Is it delivering?