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Planning Gain Supplement

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The Treasury are asking for consultation on the Planning Gain Settlement:

Planning-gain Supplement: a consultation

This document forms part of the Government's response to Kate Barker's review of housing supply and launches a consultation on the Government's proposal for a Planning-gain Supplement (PGS). The focus of this paper is how increases in land value created by planning decisions can be released more effectively to help finance the infrastructure needed to stimulate and service growth and ensure that local communities better share in the benefits that growth brings.

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Does anyone have any ideas on this?

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Homebuilding & Renovating had this article a few months ago.

http://www.homebuilding.co.uk I can't link to complete articles as it is a subscription service, sorry.

"Milton Keynes Self-builders Face £18,000 ‘Roof Tariff’

You will have heard of planning gain — the phrase used to describe the blackmail attempts by local authorities to acquire a slice of the action when planning permissions are granted. Milton Keynes Council is backing proposals for a tariff system, so planning consents for major housing schemes in and around the city will not be approved unless developers agree to pay ‘contributions’.

Developers can expect to pay around £18,000 per new dwelling. John Best, chief executive of Milton Keynes Council, said the local authority backed this approach which, he said “should secure significantly greater contributions from developers towards local infrastructure and facilities.”

The chief executive said that, although the tariff approach went “well beyond” what the planning authority has achieved in the past, it’s not difficult to predict that this roof tax will start to look too easy to apply and individual planning applications for new houses in the area will soon be targeted."

It is a worry as it will virtually kill off one off home builders. I couldn't afford an extra £18k (or 10%). There again with so many big builders bribing NuLab this may not change from the present system. I think my local council ask for planning gain from developers who build more than 5 homes and that goes to improving local roads, schools, etc. The point is that payment is made after site is built/sold not on PP which may be several years before build.

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News stories

Planning levy 'may curb housebuilding'

http://www.thisismoney.co.uk/news/article....26&in_page_id=2

Gruel Today, But Maybe Jam In Three Years' Time

http://www.newsletter.co.uk/story/24693

2m new homes in building blitz

http://www.thisismoney.co.uk/mortgages/art...23&in_page_id=8

Building of homes to increase by a third

http://www.telegraph.co.uk/money/main.jhtm.../ixcitytop.html

Levy aims to prevent landowners profiting from jump in values

http://news.ft.com/cms/s/94a9d94e-65fd-11d...00779e2340.html

UK's Brown says to levy development windfall tax

http://today.reuters.com/investing/finance...ROPERTY-TAX.XML

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Well,

when Milton Keynes was firt set up,

it had a remit to provide cheap housing.

The UK commercial builders refused to tender for the

contracts, so they went ahead on thier own initiative.

Whicih is why there are some odd designs floating

around on the older estates.

It seems that this levy would be unlikely to reduce prices

though

ABB

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Well,

when Milton Keynes was firt set up,

it had a remit to provide cheap housing.

The UK commercial builders refused to tender for the

contracts, so they went ahead on thier own initiative.

Whicih is why there are some odd designs floating

around on the older estates.

It seems that this levy would be unlikely to reduce prices

though

ABB

It really depends on how it would work. If it was fixed and went to the treasury then it would increase costs - and so house prices. On the other hand if it was negotiated and went to local authorities then it would quite rapidly increase the amount of land available.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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