Pickles to scrap planning charges for small developments

1 Dec 14
Local Government Secretary Eric Pickles is to stop councils from seeking section 106 planning obligation payments for small developments of 10 homes or less.

By Richard Johnstone | 1 December 2014 

Local Government Secretary Eric Pickles is to stop councils from seeking section 106 planning obligation payments for small developments of 10 homes or less.

Publishing proposals intended to help small developers on Friday, Pickles also said town halls should not seek section 106 contributions from people building their own home, or those constructing extensions or annexes.

He also confirmed that regulations would be put in place for very rural areas so that developments of five homes or fewer will not face any charges.

According to the Department for Communities and Local Government, these reforms would save an average of £15,000 in costs relating to section 106 agreements per home new in England.
Planning agreements are intended to ensure that infrastructure is provided to support new developments, but DCLG found some councils charge up to £145,000 on single properties, more than the cost of construction.

Pickles said small builders were being ‘hammered’ by development charges, which had undermined the building industry, cost jobs and forced up the cost of housing.
‘By getting rid of these five- and six-figure charges, we will build more homes and help provide more low-cost and market housing,’ he added.

‘Overnight in many parts of England, it will be cheaper to build an extension, a family annex or just build your own home.’

Pickles also announced plans for a new £25m fund to unlock construction on micro-building sites between five and 15 homes that have planning permission but which stalled following the 2008 economic crisis.

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