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The black hole in public finances means that landowners and developers will be required to subsidise affordable housing and other community services at a much higher rate. This will significantly affect land values and development profitability. You need to be aware that these changes will occur regardless of who is in government. |
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Councils are currently reviewing their planning policies to require all sites to make significant contributions towards affordable housing and other planning obligations.
Simultaneously, the price achieved for affordable housing is dropping rapidly because:
- Government has little funding available from 2010
- Imposition of tougher bank lending, lower rents and constrained mortgage criteria on Registered Social Landlords.
The lower receipt for affordable housing combined with the increasing cost of other planning obligations will put into question the viability of many development schemes.
There are still solutions.
Levvel has over ten years experience supporting the private sector in affordable housing planning negotiations. We have also worked with Councils to help them understand the impact that affordable housing makes on development viability. We understand both party's perspectives and can mediate to achieve the common objective of enabling development to go ahead.
Come along to one of our free half-day seminars and we will help you understand the problems, discuss the solutions and explain how we can save you time and money by getting your development back on track and back into profit.
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