PARLIAMENTARY WRITTEN QUESTION
Planning Obligations (3 February 2015)

To ask the Secretary of State for Communities and Local Government, what assessment he has made of the potential effect on future supply of affordable housing of the introduction of the financial credit for vacant buildings.

Asked by:
Emma Reynolds (Labour)

The Department for Communities and Local Government carried out a public consultation in March 2014 to invite views and local evidence on proposed changes to national policy on the issue of Section 106 tariffs being imposed on empty buildings being brought back into use. All evidence submitted was carefully considered. The new policy was outlined in my Written Ministerial Statement of 28 November 2014, Official Report, Column 55WS. The purpose of the credit is to provide an incentive that will help regenerate empty and redundant buildings.

I can confirm that we have also undertaken an Equality Impact Assessment, which I will arrange to be placed in the Library. We do not consider our reforms will have a negative impact on discrimination, fostering good relations or advancing equality of opportunity.

We do not believe that our reforms will have any significant adverse effect on our affordable housing programme. We have so far delivered 217,000 new affordable homes since 2010, and are bringing in £19.5 billion of public and private in affordable housing over the current Spending Review period. In the next Parliament, we are on track to deliver a further 275,000 new affordable homes, backed up by £38 billion of public and private investment.

Planning guidance is kept under review and is updated as required, and we are open to representations on any practical areas where further assistance is needed to help facilitate the implementation of new policy.

I would note:

· The policy changes are aimed at providing a clear incentive for brownfield regeneration, whilst supporting the Government’s policies of protecting the Green Belt and increasing housing supply.

· The relief is intended to reflect the often higher costs of conversion and refurbishment and bringing an existing building back into use. Our reforms will help increase development and regeneration, providing more homes at no cost to the taxpayer.

· Such re-use of existing buildings has a limited impact on local infrastructure; however, any increase in floor space would still be liable for Section 106 tariffs.

· The Government had already amended regulations for the Community Infrastructure Levy which extend an existing credit for vacant buildings being brought back into use from the levy. This applies either where buildings are brought back into the same use, or for a change of use provided they have not been “abandoned” and have been in use for at least six months in the last three years. In either case the levy is only charged on any increase in floor space. Our Section 106 reforms mirror those Community Infrastructure Levy reforms: this is a consistent, joined-up approach.

Our new policy was endorsed in the consultation by the likes of the Federation of Small Businesses, the Home Builders Federation, the London Chamber of Commerce and Industry and the British Property Federation. They said that the proposed policy would encourage the refurbishment and regeneration of brownfield sites and bring vacant buildings back into use, especially given the higher costs of building on previously developed land.

It is crazy to be putting stealth taxes on empty and redundant buildings being brought back into productive use, as it hinders regeneration and discourages new housing being created from conversions. I would note to the rt. hon. Member for Dulwich and West Norwood that one of the reasons why London house prices are so high is all the levies and charges placed on them. If the state puts heavy taxes on new housing, prices will rise and supply will fall; conversely, our reforms will help lower housing costs and increase housing supply.

Reflecting commitments made in the Coalition Agreement, getting empty and redundant buildings back into use is a key priority for this Government. Under the Coalition Government, the number of empty homes in England has so far fallen to a 10 year low. Our reforms will further support the conversion of empty buildings, and so deliver an economic, social and environmental benefit to society.

Answered by:
Sir Brandon Lewis (Conservative)
12 February 2015