New “vacant building credit” will cost the City of London around £8m per year in affordable housing levies.
Members of the council committee have today resolved to authorise officers to look into making the case that the vacant building credit should not apply to the City of London.
The council said the new planning guidance introduced by housing minister Brandon Lewis in late 2014 could severely reduce its ability to deliver its affordable housing programme in the future.
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.
Estates Gazette revealed last week that the it could slash up to £1bn pa from neighbouring Westminster city council’s affordable housing pot.
The city’s chief planning officer Annie Hampson said: “As London continues to face a crisis in the provision of affordable housing, it is concerning that these rules will reduce significantly the ability of local authorities to provide additional affordable housing.”
