Author: Matthew White, Partner and Head of Planning, London
Developers with planning permission for residential development can currently apply to renegotiate affordable housing obligations which have become economically unviable. However, this review mechanism will cease to be effective on 30 April 2016. Therefore applicants have until this date to apply to renegotiate, and later requests will not be considered.
The review mechanism was introduced as a temporary measure in 2013 (under new sections 106 BA-BC of the Town and Country Planning Act 1990) to assist stalled schemes, and it was due to end on 30 April 2016. According to the Government's Spending Review and Autumn Statement 2015, the mechanism was going to be extended to 2018. However the Department for Communities and Local Government (DCLG) has confirmed to us that the provisions will in fact cease to be effective on 30 April 2016, as originally stated in the legislation. DCLG accept that this is a change in direction from the autumn statements but state that they are not planning to make a formal announcement on the matter at this stage.
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