Tuesday 24 May 2011

Coalition set to relax rules on barn conversions

From +Planning  Monday, 23 May 2011

"Rural landowners have welcomed government moves to ease planning restrictions preventing disused farm buildings from being converted into affordable housing.

The relaxation is signalled in this month's government response to the Commons environment, food and rural affairs committee's February report on farming in the uplands.

The response invites authorities facing rural housing shortages "to consider amending their local planning policies to support the change of use of farm buildings to affordable homes where these are considered inappropriate for employment use, or take the need for affordable homes into account in assessing individual applications".
William Worsley, president of landowners' lobby group the Country Land and Business Association, welcomed the move. However, he added: "It is a great pity the Government does not yet recognise the need for new-build housing on upland farms." This is often a cheaper option than converting disused barns, he said.
But Ian Woodhurst, senior farming campaigner at the Campaign to Protect Rural England, said: "Any conversion should be done sensitively. We don't want to see suburban designs in the middle of upland landscapes."
In their response, ministers also promise a rural policy statement before the Parliamentary summer recess".
Comment: There is an important word in the midst of all this that bears consideration and that is 'affordable'. 
Just how will a single barn conversion be of interest to a Housing Association or local Housing Trust who are tasked with delivering 'affordable housing'? I doubt any current affordable housing providers property criteria could be achieved and management of a remote single unit is just not practicable. I rather think the Government have a broader agenda or, alternatively are yet again playing to the crowd.  Perhaps we are seeing a change in interpretation of that particular planning word than has been the case in the last decade or so.
Perhaps the Rural Policy Statement will shed some further light. 

Wednesday 11 May 2011

Community Infrastructure Levy - An Update

Just how excited can one human being get about such an arguably dry topic as the "Community Infrastructure Levy". If I had a life, probably not very, but as a planning consultant this legislation will rule my world (not rock my world sadly) for some time to come.

Why I hear you ask. What could possibly be so fascinating?

Well, put simply, CIL is designed to extract cash from developments in order to pay for the infrastructure to support it. A pre-determined charging schedule will be applied to most development projects at the planning application stage so that everyone knows what is expected of the scheme, especially the developer.

The justification for this is wrapped up in the smoke and mirrors of the planning system, but essentially the Government cannot afford to fund infrastructure out of our taxes by the look of it so the 'developer pays' principle is moved heavily front and centre. Arguably this has been the case for some time, but the whole 'Planning Gain' system will now be consolidated into a cash-card based contribution.

All local authorities will eventually have a charging schedule and a small number of authorities are trialling the system at the moment. 

Draft CIL schedules have recently been produced by the Mayor of London [ http://www.london.gov.uk/publication/mayoral-community-infrastructure-levy ]and Newark & Sherwood District Council [ http://www.newark-sherwooddc.gov.uk/pp/Gold/ViewGold.asp?ID=5531 ]. 

The latter is very informative and shows differential charging rates for various parts of the District. It also shows the detailed assessments made that have lead to the charging schedules in accordance with the guidance. £50 per metre seems to have become a common benchmark figure, but rates vary by type of project. A zero charging sum is evident in the schedules - for affordable housing for example.  Average charging rates are calculated based on development value assessments for differing projects types.

Originally introduced by the Labour Government and initially scheduled to be revoked by the coalition, CIL has evidently had a reprieve and been updated. Last month saw an amendment to the original Regulations to clarify certain technicalities and a new guidance document has just been released
 http://www.communities.gov.uk/publications/planningandbuilding/communityinfrastructurelevymay11 ] which provides the whole story.

In the mean time what will this mean for day to day planning?

Developers will be able to assess their CIL at the outset based on the sq m to be built. There will be certainty over commitment and locals will know just how much is being generated from the scheme and what it will be applied to. (Well that's the theory anyway).

Planning consultants will have to become mathematicians and start applying the CIL calculations to development schemes (my head is already beginning to hurt). The new Regulations do allow for undertaking works instead of paying the charge so there will still be negotiations. And Section 106 agreements will still be required, but this time to ensure that the authority that is trousering the cash actually provide the relevant infrastructure - rather than just putting it in the Council coffers to pay for the next fact finding mission to the Seychelles or whatever. You can imagine a situation where a scheme is dependent on a new bypass, or trunk sewer that never materialises. That is going to put a crimp in anyone's development delivery programme.

I rather think that - in the end - developers may start comparing and contrasting charging rates within and between authorities in order to find a site at a lower CIL cost. There would be opportunities for authorities to outbid (i.e. under-charge) their neighbours to gain beneficial development, although I expect location, location, location will still be the predominant market driver.

What the CIL may do is help reduce land values - and this is perhaps the eventual outcome.

In the mean time, enjoy the read and watch this space for further info as CIL begins the evolve.