Residential planning consents have fallen by 42% in areas where community infrastructure levy charging schedules have been introduced.
The sharp decline, revealed in research by Savills, contrasts with a 32% increase in consents across England as a whole.
British Property Federation associate director for planning policy Ghislaine Trehearne said: “Not only is CIL not providing funds for the infrastructure that is so badly needed to support development, but the CIL regime is actively discouraging development in the areas in which it is in place.
“The CIL regime clearly does not work, and urgently needs brave reform to ensure that these problems are ironed out.”
Savills also found the number of applications in areas affected by charging schedules spiked in the period immediately before CIL was introduced, before falling to well below the national average.
In the London borough of Redbridge the number of new homes built has fallen by half since the introduction of the levy.
However, the London-wide mayoral CIL has performed “over and above expectations”, said Savills associate planning director Charlie Collins.
The mayoral CIL uses three flat rates – £20, £35 or £50 per m2 – and helps pay for Crossrail.
