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Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
Charging Schedules- Michael Davies, RTPI West Midlands CPD
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Charging Schedules- Michael Davies, RTPI West Midlands CPD

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14th November 2012

14th November 2012

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  • 1. RTPI West MidlandsCIL Charging Schedules – One Year onFrom AdoptionHousebuilders Perspective &Different Approaches Being Adopted By Local AuthoritiesMichael Davies BSc(Hons) Dip TP MRTPIPlanning Director, Savills14 November 2012savills.com
  • 2. 1) Housebuilder perspective2) Different approaches being adopted by Local Authorities
  • 3. Key Challenges – Housebuilder Perspective Legislation – not the clearest! Misunderstanding/ignorance of CIL Apathy Cost Commercial sensitivities Lack of skills / resource in some LAs Infrastructure delivery – and the lack of certainty Recurring issues – setting and operating a CIL
  • 4. Recurring issues – Setting a CIL Early and meaningful engagement important Potential dangers of relying on one opinion – raw numbers are only half the story... Consortium approach can overcome apathy and costs challenges (e.g. HBF and other) Early guidance on interface between CIL and S.106 – don‟t leave to PDCS or later! Early guidance on interface between CIL and adopted/emerging policy Member engagement?! Early indication of exemptions/relief/instalments – manage expectations Consider practicalities of operation and review at outset
  • 5. Recurring issues – Operating a CIL Allow for peak in applications/S.106 activity as implementation nears S.73 and CIL liability – big issue! Interface between CIL Reg 123 list and operation of S.106 Defining, maintaining and changing Reg 123 lists – flexibility vs. risks Be clear on what is and isn‟t liable before proceeding Early warning systems/monitoring – development plan as well as CIL
  • 6. Key CIL ReferencesCIL Regs „Appropriate balance‟ between funding from CIL v economic viability (reg 14)NPPF Flexibility and delivery of development key in plan-making (cumulative impacts of standards and policies) (para 174) Meaningful proportion to neighbourhoods (para 175) Role for Section 106 (para 176) Knowledge of infrastructure needs/ costs to deliver development (para 177) ‘Competitive returns’ to a willing landowner and developer required to enable development to be deliverable (para 173) BUT..........
  • 7. Crossrail CIL Examination ReportParagraph 31 “Profit levels sought by developers could be reduced. I fully appreciate the natural resistance that there would be to this but a modest reduction in profit levels may be something that the development industry will have to learn to accept”Keith Holland – CIL Examiner
  • 8. Savills viability workshop October 2012Summary of Key Findings: Infrastructure Delivery Uncertainty Ability to negotiate reduced Trust in LPAs What is a “Meaningful proportion”? Evidence being ignored Representations to CLG
  • 9. 2) Different approaches being adopted by Local Authorities
  • 10. CIL Progress to Date • Committed to CIL78 • Producing their evidence base122 • Preliminary Draft Charging Schedule stage48 • Draft Charging Schedule stage11 • Examination stage13 • Charging Schedule Adopted or Implemented 7Source: Savills, 12 November 2012
  • 11. Adopted CIL Rates Max Resi Max Retail Max Max Leisure Other (£/M²) CIL RateLocal Authority Rate (£/M²) Rate (£/M²) Commercial Rate (£/M²) Status Rate (£/M²)Newark and Sherwood £75 £125 £20 £0 AdoptedShropshire £80 £0 £0 £0 AdoptedHuntingdonshire £85 £100 £0 £85 Health £65 Adopted Hotels £60 Resi Institutions £45Portsmouth £105 £53 £0 £53 Hotels £53 AdoptedWycombe £150 £200 £0 £0 AdoptedBristol £70 £120 £0 £50 Student housing Adopted £100 (effective Hotels £70 from 1/1/13)Poole £150 £0 £0 £0 Adopted (effective from 2/1/13)
  • 12. Emerging CIL Rates Max Resi Max Retail Max Max Leisure Other (£/M²) CIL RateLocal Authority Rate (£/M²) Rate (£/M²) Commercial Rate (£/M²) Status Rate (£/M²)Preston / Chorley / South £65 £160 £10 £0 Retail Warehouse £40 DraftRibble (Central Lancs)Bassetlaw £55 £125 £15 £0 DraftBroadland, Norwich and South £115 £135 £5 £0 DraftNorfolkEast Cambridgeshire £90 £120 £0 £0 DraftColchester £120 £240 £0 £0 DraftNew Forest £80 £200 £0 £0 DraftSouthampton £90 £43 £0 £0 DraftHavant £100 £80 £0 £0 DraftMid Devon £90 £0 £0 £0 DraftExeter £80 £240 £0 £0 Student housing £40 DraftPlymouth £30 £100 £0 £0 Student housing £60 Draft
  • 13. Emerging CIL Rates Max Resi Max Retail Max Max Leisure Other (£/M²) CIL RateLocal Authority Rate (£/M²) Rate (£/M²) Commercial Rate (£/M²) Status Rate (£/M²)Torbay £100 £300 £0 £0 Prelim. DraftThurrock £38 £150 £25 £0 Prelim. DraftBirmingham City £115 £380 £55 £35 Max Hotels £45 Prelim. Student Housing £115 DraftBracknell £220 £95 £0 £0 Hotels £25 Prelim. Resi care home £150 DraftBolton £50 £150 £5 £5 Hotels £5 Prelim. Student housing £50 Draft
  • 14. Viability Testing of CIL Charging Schedules Assumptions must be realistic  House prices (for sale and rent)  Rates of sale  Build costs & infrastructure  Cost of capital  Return to willing developer  Return to willing landowner Method must be sound  Land sampling  Policy assumptions  Net developable area  Cashflow on large sites  Current/future values
  • 15. Different Local Authority Approaches – Central Lancs
  • 16. Different Local Authority Approaches - VariousGreater Norwich / Norfolk  2007 Land ValuesBristol (June 2012)  Sales values £100 psf below market evidence Bracknell (June 2012)  No input from landowners/developers  Lack of market evidence  Infrastructure delivery and spending not related to the PlanHavant (Sept 2012)  Key infrastructure requirements not supported by County  No s106 assumed
  • 17. Different Local Authority Approaches - Birmingham  £115 psm – Higher Value Areas  £55 psm all other areas  Student accommodation £115 psm – assumes Edgbaston  No on site s106
  • 18. DCLG Review – Watch this space.......

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