Know what applies to you

As a developer, you may need to make a contribution towards the community – such as affordable housing, trees, or public spaces. So it’s vital you know what contributions apply to your scheme.

There are two principal mechanisms for collecting payments, the Community Infrastructure Levy (CIL) and Section 106. The Government is encouraging all local authorities to implement CIL which is generally used to facilitate development by imposing a lower rate, or limit development by imposing a higher rate, and is applied per m2 of increased floor area. Section 106 is used to collect affordable housing contributions either as a cash payment or as homes provided within your scheme; criteria is decided at a local level and shared online.

If you’re developing a larger scheme, also familiarise yourself with Section 278 which collects contributions to highway alterations and improvements. Here, what you pay depends on the size, location and traffic situation of the scheme.

At PD Appraisals, we provide an extensive range of support services for property developers, investors and land owners. 

Please get in touch for more information.