The tarriffs reinforce section 106 planning gain agreements, which force developers to include things like housing and community centres in schemes as a condition of granting planning permission.
Office and retail schemes may also have to include housing in future.
Local authorities would set the tariffs, but developers have decried the plans as a tax that would curtail new developments. They are claiming that excessive demands by councils are rendering schemes uneconomic and killing off housing developments of all types.
Petty said: “The notion that developers can and should pay more towards tackling the affordable housing crisis is already gaining ground in practice.”
Speaking at a Drivers Jonas social housing seminar in London last week, Petty also noted registered social landlords with an interest in market renting should take “greater care” when appraising potential projects.
He predicted a “marked slowdown” in house price growth and added that decreasing affordability could pose a threat to those RSLs and financiers that are diversifying into market renting.
Source
Housing Today
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