Setting the threshold for payment of S106 contributions from developers at 10 houses or more whereas it was previously 5 was set to lose the government contributions of £693m and cut the number of affordable homes being built by 37%.
Or to look at it another way, it was set to give developers £693m more profit and no need to build 37% more affordable homes. Now, either that was an unintentional mistake in drawing up the guidance (bad) or intentional (bad). Of course, the DGLC is appealing this High Court ruling on behalf of developers.
“The judgment added that officials had advised ministers that if a threshold of ten units or fewer were to be introduced, 21 per cent of affordable housing contributions would be exempt, equating to an annual value of £693 million. According to research published last month by social charity the Joseph Rowntree Foundation, 37 per cent of affordable homes completed in 2013/14 were delivered through section 106 deals (see infographic).
Ricketts said the ruling “tells the secretary of state in capital letters that PPG is not a place for substantive changes to government policies”. He added: “There are lessons for the way in which the government approaches the next round of changes to the planning system about complying with appropriate legal principles on consultation and then for the responses to consultation to be taken into account by the government conscientiously.”
Ivory added that, since the introduction of the PPG, there has been a “blurring between policy and guidance”. He said: “I am concerned that policy is being announced by way of changes to the guidance. This case doesn’t quite tackle that point, but does seem to move in the direction of demonstrating the need for clarity.”
Mike Kiely, chairman of the board of the Planning Officers Society, said the ruling was a “shot across the bows of the DCLG”. He added that the judgment makes clear that consultation responses should be examined “diligently” and given due response. “It’s not a tick-box exercise”, Kiely said.”
