14 December 2007
Proposals to fund public services through the planning system could frustrate efforts to build more affordable housing, social landlords warned this week.
According to the National Housing Federation, the planned community infrastructure levy would tempt many councils to accept cash payments from developers rather than negotiate for more low-cost homes under Section 106 'planning gain' agreements.
The levy is proposed in the Planning Bill, which received its second reading in the Commons on December 10. It is intended to complement the Section 106 system, which leads to developers building affordable or social housing alongside more expensive homes.
But David Orr, chief executive of the NHF, said the Bill fails to protect Section 106 agreements and could mean that social housing is 'shunted into cheaper sites', away from local amenities.
'Money that should have been used to tackle the rising tide of housing needs may well be siphoned off for other public infrastructure,' he added.
The Home Builders' Federation, which urged the government to go for a planning charge or levy rather than pursue its earlier proposals for a planning gain supplement, said councils should set out where they want affordable housing in local plans.
'We have never said that the levy should be at the expense of affordable housing,' said HBF external affairs director John Slaughter.
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