Out-Law News 1 min. read

HBF creates 'fighting fund' to challenge CIL levels


The Home Builders Federation (HBF) has employed real estate services provider Savills to represent the house building industry and ensure that local planning authorities set realistic community infrastructure levy (CIL) rates.

The HBF said in a statement that it wanted to make sure local authorities abide by their responsibilities under CIL legislation, which requires them to set CIL rates at levels that do not make development unviable. The employment of Savills has been funded by a 'fighting fund' established by the body's larger members.

The move follows recent recommendations by examiners to the Greater Norwich Development Area (GNDA) and Mid Devon District Council for a reduction in the residential rates proposed in their respective draft charging schedules (DCS).

The examiner for the GNDA DCS said that the proposed rate of up to £115 per square metre posed a "significant threat" to the viability of schemes and recommended a reduction of 35%. In Mid Devon, the examiner recommended that the proposed rate of £90 per sq m was reduced to £40 per sq m.

“The new planning and regulatory systems hand significant powers to local authorities," said HBF executive chairman Stewart Baseley. "We are keen to work constructively with them to ensure they are abiding by their new responsibilities."

“The rate at which CIL is set will be a huge determinant on whether house building sites are viable or not. We have an acute housing crisis in this country and it is imperative desperately needed housing supply is not strangled. We want to work with Councils to set realistic charge levels that allow houses to be built – and vital infrastructure be delivered,” Baseley said.

“We have represented individual consortia of HBF members across the country on over 35 CILs to date," said Savills associate director Melys Pritchett. "Effective engagement from the industry needs to be coordinated and supported with a strong evidence base." 

"This commitment by the HBF and its members will allow us to positively and proactively engage with local authorities to assist them in ensuring their CIL rates do not prejudice the delivery of their development plans,” Pritchett said.

Earlier this month, the HBF announced that it had appointed two new planners to enable the home building industry to be represented at all forthcoming local plan examinations across local authorities. It said that both operations will be managed by its plan management group which comprises senior representatives of its larger members.

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