10:36 AM, 10th December 2014, About 7 years ago 6
The government has confirmed that the development of 10 houses or less will be exempt from section 106 affordable housing contributions. (A lower threshold will apply in designated areas, such as National Parks).
Eric Pickles, the Communities Secretary, said “Small builders are being hammered by charges, which have undermined the building industry, cut jobs and forced up the cost of housing. By getting rid of these 5 and 6 figure charges, we will build more homes and help provide more low cost and market housing.
This will also be a massive boost to the self-build and custom build sector. Overnight in many parts of England, it will be cheaper to build an extension, a family annex or just build your own home. Our long term economic plan is to help hard working people”
It is estimated that on average Section 106 charges are £15,000 per Home. Thus a developer will now save £150,000 for a 10 house development. It is estimated by the National Housebuilding Council that the number of small and medium sized builders have halved from 6,167 in 1997 to 2,832 in 2012. These savings should allow a number of new developments, that were previously considered too marginal, to proceed in the New Year.
It is hoped that this initiative, along with the increased availability of funds for developers will see an increase in the level of new homes in 2015.
If any reader needs access to the finance that might be required to complete such developments please just complete the contact form below and we would love to be able to help.
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