1. The Value of Planning Agreements Graham U’ren FRTPI Dundas and Wilson CS LLP April 2008

2. Outline 1.The Aims and approach of the 2007 Study 2.General Results 3.Affordable housing contributions 4.Forecasts 5.Towards future policy and practice

3. “Review of Scottish Government Policy and Guidance on Developer Contributions - An Assessment of the Value of Planning Agreements” Dundas and Wilson and Bidwells Unpublished - completed December 2007 AIMS– to quantify benefits received 2004-7 in different categories - to forecast revenues to 2010 Additional objectives inc. assessing trends and best practice The Aims and Approach of the 2007 Study (1)

4. Stage One survey of 34 planning authorities Questionnaire on practice Table of all cases 2004-07 Response rate 82% Sample agreements Stage Two detailed sample survey Selection of 11 representative authorities Cash contributions – different categories Valuations – in-kind contributions Valuations – Affordable housing and alternative methods Forecasts The Aims and Approach of the 2007 Study (2)

5. The Aims and Approach of the 2007 Study (3) The scope of contributions to planning local/planning authorities through legal agreements Section 75 T&CP (S) Act 1997 Section 69 LG (S) Act 1973 Section 48 Roads (S) Act 1984

6. Number of Agreements - 3 years 28 PAs (survey)871 6 PAs (estimate)1501021 (Sc Borders/Edinburgh/Glasgow 462) (Aberdeenshire 27) Significant permissions linked to Agreements 2004/51.7% Housing 11% 2005/63.3%18% 2006/73.6%17% General Results (1)

7. Number of Contributions 2004/5295 2005/6440 2006/74511263 (Sc Borders/Edinburgh/Glasgow 543) (Aberdeenshire 137) Direct and In-kind Contributions 2004/525045 2005/637070 2006/7398105853 205 General Results (2)

8. Value of Contributions (3 years) Respondents - Direct financial £ 86.6m Respondents – In-Kind 30.0m Non Respondents – Direct 15.5m Non Respondents – In-Kind 8.5m Estimate of non valued In-Kind 18.5m TOTAL Value 2004/07 £159.1m General Results (3)

9. What the results do not include Agreements entered before 2004/5 Contributions following suspensive conditions One off contributions without completing an agreement Contributions to Ministers under the Roads Act Contributions following Electricity Act consents General Results (4)

10. Categories of benefits TypeNo.Direct In-Kind Affordable housing 150£ 6.9m £25.3m Roads/Infrastructure 191£28.4m £ 2.1m Recreation 286£13.3m £ 1.2m Public Transport168£ 6.1m £ 1.0m Education139£18.8m £ 0.0m Community Facilities 59£ 5.4m £ 0.03m Open space 75£ 4.3m £ 0.2m Rest195£ 3.3m £ 0.2m General Results (5)

11. Affordable housing contributions (1) The policy agenda Government guidance context Significant policy variations LHS variations Direct payments are generally commuted sum payments in lieu of units provided by developers

12. Affordable housing contributions (2) In kind contributions On-site and Off-site provision In-kind, on site contributions worth £25.33m:- 120 units (£19.25m), and 79 serviced plots for RSLs Market value assessment, and Alternative discounted price approach

13. Forecasts Projection 1 – Trend based for responding authorities, omitting major developments (Ravenscraig; Kirkintilloch) - £91m Projection 2 – Trend based for all authorities, with assumptions for non respondents - £143m Projection 3 – Trend based for all authorities with allowance for known major developments (Shawfair; West Lothian Core Areas) - £167m

14. Towards future policy and practice (1) Changing Statutory and Policy Context Amendments to Section 75 in the 2006 Act “Planning Obligations” Draft SPP3 Firm Foundations PGS > Community Inf. Levy (England)

15. Towards future policy and practice (2) Practice issues from the study Agreed and Consistent methodology Conventions for different benefits, especially affordable housing Proportionate use Resources Development plan policies and LHS Formula based policies Monitoring and Accounting (inc. other modes of contribution)

16. Graham U’ren graham.u’ren@dundas-wilson.com 0131 200 7627