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Pickles plans for section 106 exemption

Thu 11th December 2014, 2:32 pm

Communities secretary Eric Pickles has announced plans for a new policy that would exempt small residential developments from most section 106 charges.

For small developments – sites with ten or less homes, self-built homes, extensions and annexes – section 106 rules would no longer apply, including the provision for affordable housing requirement.

According to the Department for Communities and Local Government, the number of small house builders has halved since 1997, and the new policy would be a way of counteracting this.  

The policy would mean small builders could save up to £140,000 in section 106 charges.

Pickles said: "Small builders are being hammered by charges, which have undermined the building industry, cut jobs and forced up the cost of housing.

"By getting rid of these five and six-figure charges, we will build more homes and help provide more low-cost and market housing."

 

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