Following on from our posting about the removal of the exemption of small scale developments from affordable housing contributions, please note that the Court of Appeal reversed the High Court’s decision. The Court of Appeal has given legal effect to the Government’s intended policy and that now means that:

  • contributions should not be sought from developments of 10 units or less which have a maximum combined gross floor space of no more than 1,000 square metres;
  • in designated rural areas, local planning authorities can apply a lower threshold of 5 units or less and where that lower threshold is applied, affordable housing and Section 106 contributions should be sought from developments of between 6 and 10 units as commuted cash payments;
  • affordable housing and Section 106 contributions cannot be sought from any development involving an annex or extension to an existing home.This will not be welcomed by local authorities seeking to maximise affordable housing in their areas but will be a relief for developers with small scale developments planned!