Planning obligations, particularly monetary contributions and for affordable housing provision, can place a heavy burden on developers and landowners, potentially destroying scheme viability. They can also invoke onerous contractual conditions.
Many Councils have adopted formulaic guidance, which is used to try and avoid negotiation. Wherever possible we seek to resist obligations based on general formulae. Going behind the formula to the original evidence base often reveals shortcomings and opportunities to agree a different and beneficial outcome for the clients’ development.
In 2010, the Government enacted into law three criteria which govern the acceptability of planning obligations – these legal tests can be very useful tools for applicants and are often overlooked by Councils. We apply these tests as our starting point for negotiating planning obligations. This approach has allowed us to save clients substantial amounts of money, across numerous schemes.
Where ‘affordable housing’ forms part of a scheme, viability and other considerations require a firm position to be taken. A tailored approach, understanding market realities, the position of relevant social housing providers and other factors is devised. Review mechanisms can also be devised so that content can be reassessed prior to construction starting. In many circumstances we can negotiate to transfer the affordable obligation to another site or remove it entirely through a financial payment.