1. savills.com CIL Latest Research & Findings Ian Stevens, Planning

2. Intro Overview- CIL PAS Event National Overview South West Focus Key Issues Emerging Trends Conclusions

3. CIL Progress

4. CIL- All Stages Map of England & Wales Savills - http://www.savills.co.uk/promotions/cil-map.aspx http://www.savills.co.uk/promotions/cil-map.aspx

5. Savills CIL Map Implemented CILs

6. Progress on CIL Implementation (England & Wales) Source: Savills (as at 9 January 2015)

7. South West - CIL Progress 7 Implemented 7 Submitted for Examination 2 Draft Consultation 10 Preliminary Draft Charging Schedule 4 Preparing Evidence 6 Not Started Correct as at 12 January 2015 83% of Local Authorities engaged with CIL in the South West

8. South West – Implemented CIL Rates Charging AuthorityStage of Charging ScheduleResidential Rate (£/m 2 ) BristolAdopted £50 – Outer Bristol £70 – Inner Bristol Plymouth Adopted £0 – City Centre and Waterfront £30 – Everywhere else Mid DevonAdopted £40 – Everywhere ExeterAdopted £80 – Everywhere PooleAdopted £150 – Residential Zone A £100 – Residential Zone B £75 – Residential Zone C Taunton DeaneAdopted £0 – Taunton Town Centre £0 – Wellington, inc. urban extensions £70 – Taunton, inc. urban extensions £125 – Outside Taunton and Wellington TeignbridgeAdopted £70 – Newton Abbot, Kingsteignton, Kingskerswell £85 - Dawlish £125 – Tegnmouth, Chudleigh, Bovey Tracey £150 – South West Exeter £200 – Rural PurbeckAdopted £180 – Swanage / The Coast £100 – Wareham / Purbeck Rural Fringe £30 – Purbeck Rural Centre £10 - Upton

9. CIL in Practice - Exeter  1 December 2013  Single rate for residential was £80 per sq.m  Now £90.80 based on indexation  Comprehensive Regulation 123 List, covering: o Education and Youth o Sporting and Leisure Facilities o Transport Infrastructure o Off-Site Broadband Infrastructure o Library and Cultural Facilities o Community Care o Open Space o Community Facilities o European Designated Habitats

10. Key Issues

11. There are trade-offs between the viability of CIL, Section 106 and affordable housing policy Source: Savills

12. Local Context Needs to be Considered  Historic delivery  Historic Section106 achievement  Local Plan policy costs  Benchmark land value  Land supply characteristics and profile Viability Buffer

13. Local Market Evidence is Needed Source: Savills “competitive return”

14. Policy choices have a cumulative impact on viability Source: Savills Local policies must be assessed to establish an appropriate Benchmark Land Value

15. Avoiding ‘Double Dipping’  Explicit policy on the balance between Section 106 and CIL  Draft regulation 123 list – what will be excluded from Section 106 funding?  Does the Regulation 123 list support the delivery of the Plan?  The proposed changes to the regulations will tighten the restriction on pooling of Section 106  Flexible to give Charging Authorities scope to change what CIL is spent on  Must be allowed for within the viability appraisals

16. Risk to Delivery?  Commissioned by the Home Builders Federation  Charging Authorities have seen a 49% fall in the number of new residential planning consents in the 12 months post-CIL  Of the four Authorities where CIL was implemented pre-April 2012, none failed to meet their annual housing target in the year following CIL implementation.  London Mayoral CIL accounted for 94% of CIL Income Receipts in 2013-14  None of the Charging Authorities reporting CIL receipts have spent on infrastructure items on their Regulation 123 Lists

17. savills.com Risk to Delivery? Grampian Conditions – who will deliver? Who will pay? When will infrastructure be delivered?

18. Emerging Trends

19. CIL – The Countdown to April 2015  Commissioned by the Home Builders Federation  Looks at the impending Section 106 pooling restrictions that limits Local Authorities’ ability to use contributions to fund infrastructure  Highlights that a limited number of Local Authorities will have a CIL in place by April 2015  Seeks further clarification on the operation of Section 106 in Local Authorities without a CIL Charging Schedule post-April 2015

20. The Deadline: Focusing the minds of Local Authorities Restriction on the pooling of Section 106 contributions by LPAs for use towards an infrastructure type or project from 6 April 2015 or implementation of a Charging Schedule (whichever the earlier) – “At that point, no more may be collected in respect of a specific infrastructure project or a type of infrastructure through a Section 106 agreement, if five or more obligations for that project or type of infrastructure have already been entered into since 6 April 2010, and it is a type of infrastructure that is capable of being funded by the levy.” CIL Regulations 2010 (as amended) & CIL Guidance 2014 (as amended) Less than 3 months to go

21. Engagement is still important Source: Savills Research (using Hometrack sales value data) Highest reductions in lower value areas on account of “viability squeeze”

22. Projected Implementation Date (LPAs committed to CIL) Source: Savills Research (as at 3 rd September 2014)

23. Conclusions  Some authorities have set unviable rates  Delivery of affordable housing should be closely monitored  Early adopters may wish to review rates (Fareham)  CIL must strike a balance and support the development Plan  Plan policies should be adjusted where necessary  Seek consistency to avoid unintended market variations across broader areas

24. What are the implications?  LPAs need to consider the impact of the April 2015 restrictions on the delivery of infrastructure in their area  Developers and housebuilders should work with LPAs to identify key pieces of infrastructure that are needed for the delivery of housing sites  Section 106 agreements should refer to specific named projects  Further guidance from Ministers is essential to ensure that LPAs have a sufficient Section 106 mechanism in place post-April 2015, as failure to do so will have a significant impact on the delivery of both infrastructure and housing.

25. savills.com Visit www.savills.co.uk/cil