Re: S106 & Affordable Housing - Public forum - Planning Advisory Service (PAS)
Open group
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Started - July 2012
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Last activity - Yesterday
Re: S106 & Affordable Housing
Hi all, New to this forum and was hoping some advice could be offered. This is with reference to a site within Cardiff. A scheme was submitted to planning and after a viability assessment by the developer and subsequently by the VOA/DV it was found that Affordable Housing wasn't viable, so none has been requested. Under planning policy (PPW/TAN 2/interim planning policy) can the local authority put in a deferred S106 where affordable housing provisions/payments become payable in the future depending on the profit level of the actual development? My understanding of the affordable housing policies was that the Local Authority should be concerned with viability, and if affordable housing isn't viable then accepting this, rather than accepting it isn't viable but putting caveats in a S106 document. Reference to planning policy if I'm mistaken would be much appreciated. Many thanks for any replies. John
I am not familiar with planning policies in Wales but in England I know there has been a trend to build in index linked clauses in S106 agreements to vary the level of payments in respect of the envisaged changing profitability of the development over time - commonly called 'overage' clauses. However if there is no provision at all for a contribution I can't see how one can be introduced later without renegotiating the agreement.
Hi Julian, Many thanks for your reply. I agree if there is a provision already on a multi phased or large scheme if might be of benefit to put in an overage clause. It's worth noting that this is a relatively small scheme (22 residential plus 3 modest commercial units). My concern is the local authority could in theory, place such a clause and force developers to enter into a S106 even where there isn't a contribution, thus incurring costs and delays for any scheme, irrespective of if affordable housing contributions are actually being requested. Whilst I note your experience is with England, do you know of any such policy which would discourage such a practice that I've described? John