The new “vacant building credit” at the heart of a planning controversy may not be suitable for certain boroughs, two major trade bodies have said.
The new chief executive of the British Property Federation said there should be some exemptions for a new planning guidance brought forward by housing minister Brandon Lewis, which sees developers pay drastically less affordable housing payments than last year.
BPF chief executive Melanie Leech said: “A policy such as this will work well within some local authorities, but not others, and there should be scope to test its effectiveness and to put exemptions in place where necessary.”
Opposition to the “vacant building credit” follows Estates Gazette last week revealing that it could see £1bn lost from Westminister city council’s affordable housing pot every year.
Andrew Whitaker, planning director at the Home Builders Federation, said: “In some central London boroughs, the market is unique and could require alternative solutions to the crisis.”
The new credit allows for buildings that are vacant when planning is secured for residential conversion to only pay an affordable contribution on any new space. Prior to its introduction, the provision was levied on the full size of the building.
Whitaker added that the policy may be beneficial for some brownfield sites in England.
Lewis believes the policy would encourage the refurbishment and regeneration of brownfield sites and bring vacant buildings back into use.
Leech said: “There does need to be careful consideration of what effect this policy will have across different parts of the country.”
