Study: councils struggle with CIL levels

Thu 30th January 2014, 4:02 pm

According to a study by Savills, many councils have set their community infrastructure levies at levels that could potentially threaten housing development.

Savills examined local authorities where large greenfield sites form part of the housing supply, and found that in some cases CIL rates were set too close to margins of viability.

Jim Ward, director of residential sesearch and consultancy, said: "85 per cent of housing construction outside of London takes place in markets where sales values for large-scale development are no more than £250 per sq.ft.

"Our research shows that substantial CIL funding may not be achievable here, depending upon the level of affordable housing required by the authority.

"This is where authorities need to look at the balance of the three-way trade-off and make some difficult decisions based upon their priorities – they can’t always have it all."

View the report



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