Affordable Housing Escalators/Overage - Public forum - Planning Advisory Service (PAS)

You need to be careful about the profit issue - go back and look at the circular.see excerpt: "B7. Similarly, planning obligations should never be used purely as a means of securing for the local community a share in the profits of development, i.e. as a means of securing a "betterment levy"." Authorities in some cases have sought the full affordable housing requirement and discounted it in the current conditions with the provisio about when the value reaches x they get the full requirement - this may be a way forward.

We do use "open book accounting" or at least the threat of it where a developer argues that there is not sufficent income from the project to provide the 30% (Local Plan requirement). As a site may take years to develop, ignoring the three years to start, the economics may well be differant when they come to build. Not betterment, merely protecting the community.... but i take the point.

We have designed Escalators and seen them through to Heads of Terms agreed between the parties. We have also created review mechanisms which we have put into recently negotiated S.106 agreements. All this complies with HCA guidance of August 2009 and ATLAS Guidance on Jan 2010. The key issue is to cap the contributions at the level foregone under existing LA policy to make the arrangement Circular 05/05 compliant. Andy Leahy, MD, Bespoke Property Group

Andrew In which LAs were you working when you agreed the escalators? Thanks

Geoff, We have worked on such proposals with Uttlesford, South Cambs, Epsom and Ewell, Richmond, Ipswich and Bournemouth Councils. Regards Andy

many thanks Geoff