As the government wraps up a consultation on how to make property development more transparent, attention is turning to the hot topic of land banking [when developers buy land but don’t build on it for years].
With the UK facing a housing shortage and pressure to improve infrastructure, the government is introducing big changes to stop developers from sitting on land without using it. Here’s what’s changing, and what it could mean for developers and property managers.
II. A New National Infrastructure Levy [IL]
The government plans to replace CIL and Section 106 agreements with a Mandatory Infrastructure Levy. Key changes:
It’s based on the final value of a project, not its size, so higher-value builds pay more.
Payments are made when a project is complete, removing reasons to stall after planning permission.
Affordable housing will be part of this new system, with less room for developers to negotiate their way out of providing it.
These changes aim to make delaying development less appealing.
Government Cracks Down on Land Banking [Part 2]
As the government wraps up a consultation on how to make property development more transparent, attention is turning to the hot topic of land banking [when developers buy land but don’t build on it for years].
With the UK facing a housing shortage and pressure to improve infrastructure, the government is introducing big changes to stop developers from sitting on land without using it. Here’s what’s changing, and what it could mean for developers and property managers.
II. A New National Infrastructure Levy [IL]
The government plans to replace CIL and Section 106 agreements with a Mandatory Infrastructure Levy. Key changes:
It’s based on the final value of a project, not its size, so higher-value builds pay more.
Payments are made when a project is complete, removing reasons to stall after planning permission.
Affordable housing will be part of this new system, with less room for developers to negotiate their way out of providing it.
These changes aim to make delaying development less appealing.
ADAPT EARLY—PLAN SMART—BUILD FAST