The Ministerial statement introduces a new government policy on starter homes and amends guidance on S106s.
The Ministerial statement introduces a new government policy on starter homes and amends guidance on S106s. The statement says ‘… local planning authorities should not seek section 106 affordable housing and tariff-style contributions on starter homes; and they should be exempt from the community infrastructure levy to enable developers to help deliver the discounted sale price.'
The change to S106s has been brought about through revisions to the PPG. The changes to CIL will require amendments to the regulations. We understand that the government will seek to amend the CIL, to exempt discounted starter home developments from the levy in the next Parliament, if elected.
The section on starter homes in the PPG sets out the government's approach. Of particular relevance is Paragraph: 004 (Reference ID: 55-004-20150318)
How will the minimum 20% discount for Starter Homes be funded?
To deliver the minimum 20% discount, local planning authorities should not seek section 106 affordable housing contributions, including any tariff-based contributions to general infrastructure pots, from developments of Starter Homes. Local planning authorities will still be able to seek other section 106 contributions to mitigate the impact of development to make it acceptable in planning terms, including addressing any necessary infrastructure. Local planning authorities will also be eligible for the New Homes Bonus on Starter Homes.