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New NPPG paras on Planning Obligations query

Former Member, modified 9 Years ago.

New NPPG paras on Planning Obligations query

Is anyone else having difficulty intepreting the new NPPG Planning Obligation paras 021 -023

The paragraphs on the Vacant Building Credit are very unclear.

Does the credit only apply to financial contributions and not provision of affordable units – if it also applies to affordable units then how can a financial credit  and number of  affordable units to be provided be calculated?.

What constitutes a building – our experience of CIL is that  greenhouses and corrugated iron held up on scaffolding poles are claimed as “buildings”

What constitutes being  “vacant” and “abandoned” for the purpose of this paragraph – how long does a building  have to be vacant before  it potentially benefits from the credit? , how long does it have to remain vacant before it is abandoned?.

Any help in understanding the guidance would be appreciated - so far 4 colleagues have 4 different interpretations.  I have  emailed the  contact e mail on the NPPG - but dont expect  a quick response. 

 

Alison

 

 

Former Member, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

It seeks to do offsetting rather like CIL it probably makes it easier to read the Ministers statement- Brandon Lewis MP

.. We also consulted on restricting the application of affordable housing contributions to vacant buildings being brought back into use (other than for any increase in floor space). This latter proposal was to boost development on brownfield land and provide consistency with exemptions from the community infrastructure levy…

 A financial credit, equivalent to the existing gross floor space of any vacant buildings brought back into any lawful use or demolished for re-development, should be deducted from the calculation of any affordable housing contributions sought from relevant development schemes. This will not however apply to vacant buildings which have been abandoned.

The trickiness with this is that you will need to make sure on your planning applications submission requirements that you have a breakdown of exisiting floorspace and that you can calculate the affordable housing requirement into floorspace.

Oh and to get a definition of abandonment - get a planning encyclopedia and put aside a few days to read through the case law!- you really need to ask a lawyer it is not straight forward. It is not just vacant. there is  a lot of case law - even cases where building have not been used for 20 years+ but the owner intended to use it thereore it wasn't abandoned

Charlene Jones, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

New Member Posts: 22 Join Date: 30/08/13 Recent Posts

Spent ages writing something and then the computer crashed! I had a similar question to Alison - as although the Ministerial Statement obliquely references the vacancy test used on brownfield land for CIL - the PPG doesn't explicitly say that it will apply the rules that are in the CIL legislation. The CIL Regs are quite clear, and refer to the three years up to grant of planning permission.

Where a vacant building is brought back into any lawful use, or is demolished to be replaced by a new building, the developer should be offered a financial credit equivalent to the existing gross floorspace of relevant vacant buildings when the local planning authority calculates any affordable housing contribution which will be sought. Affordable housing contributions would be required for any increase in floorspace.

If the PPG reference to 'brought back into lawful use' refers to Section 191(2) of the 1990 Act as amended, then this could mean that a building could be vacant for a much longer period of time and still quality for the 'financial credit'.

Any other thoughts?

 

Former Member, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

I am really surprised that they didn't have a similar 3 year approach to the CIL regs. The wording in the statement opens a huge legal interpretation issue. The pragmatic approach is to decide on your own parameters for vacant/abandoned and therefore when to offset the floorspace and then wait for challenge - but it is far from satisfactory. Most people will just think if it hasn't been used for a long while it is abandoned- this is not alwaysthe case in law. You will need to make sure that all those implementing it do understand the true planning law definition of abandonment, so that when someone is quite legitimately making the point that they haven't abandoned the vacant building that  case is given detailed consideration in accordance with the case law. 
Former Member, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

Our posts crossed but the points you make are excellent and exactly why I am v surprised the term was used. As an aside I once spent almost a week on an abandonment case.
Charlene Jones, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

New Member Posts: 22 Join Date: 30/08/13 Recent Posts

I found an article in Planning Resource from 2011 which said the following:

I have been bothered by two apparently conflicting definitions on "abandonment". Definition 1 holds that an established use right cannot be abandoned by mere non-use. For such a use right to be abandoned there must be some intention to abandon. Definition 2 holds that where a use ceases and the land/buildings remain unused for a considerable amount of time, it may be taken that the former use has been abandoned. Both cannot be right?

As with most court led concepts related to planning law "abandonment" continues to create confusion. The most recent judgment on the matter came from the Court of Appeal in Hughes v Secretary of State for the Environment [2000]. Here the test of intention was rejected in favour of an objective assessment related to the physical condition of the building. The appeal judges noted that in this case there had been prolonged and gross neglect which was not overcome by the appellant's stated intention to resume residential use.

In spite of this clarification, any judgment on this matter remains a matter of fact and degree and cases have shown that the time which has to elapse after cessation of use for "abandonment" to have occurred is extremely variable and to a large extent relies on the level of physical deterioration. The maximum period of non-use held not to constitute abandonment, that I am aware of, is over 40 years!

Former Member, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

The use of the word "abandoned" is not at all helpful. The concept of abandonment in planning terms relates to uses of land (which includes buildings of course) but not to buildings as such. Abandonment is very difficult for LPAs to demonstrate as, as has already been said, it depends not only on the passing of time but also on te intentions of the land owners.

Referring to the abandonment of a building as oposed to the abandonment of the use of land may be intended to open up a whole new area of planning law! Who knows! It would obviously have been much better to refer to the non use or vacancy of a building for a specified period which could have been the same as in the CIL Regs, but that would been too easy for us.    

Former Member, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

On a related, but slightly different point:

No contribution is required for developments of less than 10 units and less than 1000 sqm.  If the development is less than 10 units but more than 1000sqm, can the vacant building credit be used to reduce the floorspace below the threshold (so no contribution of any sort is required), or, as implied by paras 21 and 22, is the VBC simply a financial offset aganst the calculated affordable housing contribution?  If the latter interpretation is correct does it mean that a contribution can still be sought for "other tariff based contributions"?

Former Member, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

Hi I'm still unsure about a point raised in Alison's original post as to when the vacant building credit applies...

"Does the credit only apply to financial contributions and not provision of affordable units – if it also applies to affordable units then how can a financial credit  and number of  affordable units to be provided be calculated?"

The whole crux of the ministerial statement and new guidance was about 'supporting small builders' and removing affordable housing requirements from developments of less than 10 dwellings or more.  For a scheme of 100 dwellings where there is a requirement for 30% on-site affordable housing that will involve demolition of some existing buildings, I don't see that the vacant building credit should apply - the guidance talks about affordable housing contributions - but in this examle there won't be any affordable housing contributions, rather a planning obligation to provide affordable housing on-site. 

Former Member, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

I agree that it is less than clear - but the credit relates to all scales of development not just 'small' developments that is referred to in the first part of the ministerial statement. E.g. knock down and office block  of 3000SqM  and replaced by a block of flats of 3000sqm there is not ability for the LPA to get any affordable housing either as a finacial contribution or as units. And if the new flats were a net increase of say 200 sqM floorspace- the LPA would just get the amount of affordable housing for the 200SqM - so affordable housing for the net increase in floorspace ( a bit like CIL). None of this takes into account that LPA don't (usually) break affordable housing down into a charge per sq M and there is no guidance on how to approach it.   
Former Member, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

Gillian - thanks.  I think this probably answers my query.  You seem to be agreeing that the Vacant Building Credit is a financial credit against the cash sum of any affordable housing contribution (I leave out of this the question of how that is derived).  In other words the credit relates only to the affordable housing contribution and that, if, for example, there are other "tariff based contributions" (such as a contribution to local recreational amenities based on the sq m of the development), these are not affected by any VBC.  Do others agree?
Former Member, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

yes, the vacant building credit only applies to affordable housing not to other s106 such as tariff style or any other contributions such as educatons, POS etc
Former Member, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

Am I correct in understanding that the VBC at paragraph 021 of the PPG means that unless one can prove a building has been abandoned (very tricky and involving costly legal advice) the existing floorspace in a development will always be counted as a credit exempt from affordable housing (AH)? I originally thought that the recent Government changes in respect of planning obligations were to benefit small/medium scale development under the 10 unit threshold only. However, if the VBC applies to any scale of development, in a borough where development is predominantly brownfield, this will mean we rarely secure AH through Section 106 - crazy if this is the case!
Former Member, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

Yes it applies to all scales of development -you were not alone thinking that because it was part of the 'small scale developers' ministerial statement it only related to 11 dwelling and under developments
Former Member, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

I've said in my post why I believe the vacant building credit only applies to developments of 6 to 10 dwellings in designated rural areas.  Can you explain why you say the vacant building credit applies to all developments please?
Former Member, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

I  suspect Gillian is correct - but I too would like to be clear.  I have queried again with CLG as the response to an earlier letter did not clarify this point...I will try and attach what I did receive as it does explain that it applies to units and not just contributions and how to calculate Affordable Housing taking into account vacant building credit.
Former Member, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

Thanks for putting the letter up thats great - and does explain not just financial contributions but provision of units ( requiring a calculation for part units)  but the answer to a building question isn't that clear - it is not so much that authorities have a policy on it but if it is the same as CIL then DCLG have alwasy said  a buidling is the whole of the physical structure regardless of how many planning units e.g. whole office block
Former Member, modified 9 Years ago.

RE: New NPPG paras on Planning Obligations query

Paragraph 21 says the vacant building credit should be offered "when the local planning authority calculates any affordable housing contribution which will be sought."  The only time the PPG says an LPA should calculate an affordable housing contribution is in the situation referred to in paragraphs 12 and 17: for developments of 6 to 10 dwellings in designated rural areas.