War of words over 'unrealistic' demands on developers

Thursday 28th June 2012

Local councils and ministers look set to be on a collision course over requirements on developers to provide affordable homes and local amenities as a condition of being allowed to build.

In the Commons this week, housing minister Grant Shapps said that the Get Britain Building scheme – now extended to small, local builders (see separate story) – is designed to unlock stalled sites.

He stressed that there is no requirement for Get Britain Building bids to include affordable units, even though the original planning permission may have required them.

He went on to criticise the section 106 agreements, saying they had made some sites unviable.

He said: “A contributing factor for sites being stalled may be due to economically unrealistic section 106 agreements negotiated at the height of the housing boom – resulting in no development, no regeneration and no community benefits at all.”

At the same time, however, Shapps has had a letter from the Local Government Association, calling for section 106 agreements to be enforced.

The LGA said that local councils are ‘desperate’ to do more to help tackle Britain’s housing crisis.

The LGA, which represents more than 350 councils in England and Wales, said there were key steps the Government needs to take.

It said that councils should be given power to secure and invest in new roads, parks, schools, surgeries and infrastructure, and urged the Government to drop its proposal to compel councils to reconsider earlier section 106 agreements.