This document summarizes a report by real estate company Savills on the Community Infrastructure Levy (CIL) in the UK. It finds that 83% of local authorities in the South West of England are engaged with CIL. While some authorities have set viable CIL rates, others may have set rates that are not viable and could impact housing delivery. The restrictions on pooling Section 106 contributions beginning in April 2015 could also impact infrastructure delivery if local authorities do not have a CIL in place or adjust section 106 agreements. Emerging trends suggest authorities still need to engage developers to identify key infrastructure and ensure CIL strikes a balance to support development plans.

1. savills.com
CIL Latest Research & Findings
Ian Stevens, Planning

2. Intro
Overview- CIL PAS Event
National Overview
South West Focus
Key Issues
Emerging Trends
Conclusions

3. CIL Progress

4. CIL- All Stages Map of England & Wales
Savills - http://www.savills.co.uk/promotions/cil-map.aspx

5. Savills
CIL Map
Implemented
CILs

6. Progress on CIL Implementation (England & Wales)
Source: Savills (as at 9 January 2015)

7. South West - CIL Progress
7 Implemented
7 Submitted for Examination
2 Draft Consultation
10 Preliminary Draft Charging Schedule
4 Preparing Evidence
6 Not Started
Correct as at 12 January 2015
83% of Local Authorities
engaged with CIL in the
South West

8. South West – Implemented CIL Rates
Charging Authority Stage of Charging Schedule Residential Rate (£/m2
)
Bristol Adopted £50 – Outer Bristol
£70 – Inner Bristol
Plymouth Adopted £0 – City Centre and Waterfront
£30 – Everywhere else
Mid Devon Adopted £40 – Everywhere
Exeter Adopted £80 – Everywhere
Poole Adopted £150 – Residential Zone A
£100 – Residential Zone B
£75 – Residential Zone C
Taunton Deane Adopted £0 – Taunton Town Centre
£0 – Wellington, inc. urban extensions
£70 – Taunton, inc. urban extensions
£125 – Outside Taunton and Wellington
Teignbridge Adopted £70 – Newton Abbot, Kingsteignton, Kingskerswell
£85 - Dawlish
£125 – Tegnmouth, Chudleigh, Bovey Tracey
£150 – South West Exeter
£200 – Rural
Purbeck Adopted £180 – Swanage / The Coast
£100 – Wareham / Purbeck Rural Fringe
£30 – Purbeck Rural Centre
£10 - Upton

9. CIL in Practice - Exeter
 1 December 2013
 Single rate for residential was £80 per sq.m
 Now £90.80 based on indexation
 Comprehensive Regulation 123 List, covering:
o Education and Youth
o Sporting and Leisure Facilities
o Transport Infrastructure
o Off-Site Broadband Infrastructure
o Library and Cultural Facilities
o Community Care
o Open Space
o Community Facilities
o European Designated Habitats

10. Key Issues

11. There are trade-offs between the viability of CIL,
Section 106 and affordable housing policy
Source: Savills

12. Local Context Needs to be Considered
 Historic delivery
 Historic Section106 achievement
 Local Plan policy costs
 Benchmark land value
 Land supply characteristics and profile
Viability Buffer

13. Local Market Evidence is Needed
Source: Savills
“competitive return”

14. Policy choices have a cumulative impact on viability
Source: Savills
Local policies must be
assessed to establish an
appropriate Benchmark
Land Value

15. Avoiding ‘Double Dipping’
 Explicit policy on the balance between Section 106 and CIL
 Draft regulation 123 list – what will be excluded from Section 106 funding?
 Does the Regulation 123 list support the delivery of the Plan?
 The proposed changes to the regulations will tighten the restriction on pooling
of Section 106
 Flexible to give Charging Authorities scope to change what CIL is spent on
 Must be allowed for within the viability appraisals

16. Risk to Delivery?
 Commissioned by the Home Builders
Federation
 Charging Authorities have seen a 49% fall in
the number of new residential planning
consents in the 12 months post-CIL
 Of the four Authorities where CIL was
implemented pre-April 2012, none failed to
meet their annual housing target in the year
following CIL implementation.
 London Mayoral CIL accounted for 94% of
CIL Income Receipts in 2013-14
 None of the Charging Authorities reporting
CIL receipts have spent on infrastructure
items on their Regulation 123 Lists

17. savills.com
Risk to Delivery?
Grampian Conditions
– who will deliver?
Who will pay? When will infrastructure
be delivered?

18. Emerging Trends

19. CIL – The Countdown to April 2015
 Commissioned by the Home Builders
Federation
 Looks at the impending Section 106 pooling
restrictions that limits Local Authorities’ ability
to use contributions to fund infrastructure
 Highlights that a limited number of Local
Authorities will have a CIL in place by April
2015
 Seeks further clarification on the operation of
Section 106 in Local Authorities without a CIL
Charging Schedule post-April 2015

20. The Deadline: Focusing the minds of Local Authorities
Restriction on the pooling of Section 106 contributions by LPAs for use towards an
infrastructure type or project from 6 April 2015 or implementation of a Charging
Schedule (whichever the earlier) –
“At that point, no more may be collected in respect of a specific infrastructure project
or a type of infrastructure through a Section 106 agreement, if five or more
obligations for that project or type of infrastructure have already been entered into
since 6 April 2010, and it is a type of infrastructure that is capable of being funded by
the levy.”
CIL Regulations 2010 (as amended) & CIL Guidance 2014 (as amended)
Less than 3
months to go

21. Engagement is still important
Source: Savills Research (using Hometrack sales value data)
Highest
reductions in lower
value areas on
account of “viability
squeeze”

22. Projected Implementation Date (LPAs committed to CIL)
Source: Savills Research (as at 3rd
September 2014)

23. Conclusions
 Some authorities have set unviable rates
 Delivery of affordable housing should be closely monitored
 Early adopters may wish to review rates (Fareham)
 CIL must strike a balance and support the development Plan
 Plan policies should be adjusted where necessary
 Seek consistency to avoid unintended market variations across broader areas

24. What are the implications?
 LPAs need to consider the impact of the April
2015 restrictions on the delivery of
infrastructure in their area
 Developers and housebuilders should work
with LPAs to identify key pieces of
infrastructure that are needed for the delivery
of housing sites
 Section 106 agreements should refer to
specific named projects
 Further guidance from Ministers is essential to
ensure that LPAs have a sufficient Section 106
mechanism in place post-April 2015, as failure
to do so will have a significant impact on the
delivery of both infrastructure and housing.

25. savills.com
Visit www.savills.co.uk/cil