CIL is having a negative effect on the market according to Richard Carr

Commercial and Residential Development Consultant Richard Carr believes that the introduction of community infrastructure levy (CIL) is having a negative effect on residential planning.

Consents halve in aftermath of CIL

Richard Carr currently works as a consultant for Jacob Carr Homes Ltd. He has an excellent track record in achieving planning for his employer and clients.

He has been following the impact of CIL since its introduction last year and isn’t surprised by research from real estate firm Savills, which reveals that local planning authorities are seeing a 49% drop in residential planning consents.

Housing targets missed

Richard Carr Planning Permission Homes

Planning consents have fallen since CIL

As a result of the incline, housing targets across the UK are being missed. The report entitled ‘CIL: Is It Delivering?’ highlighted a peak in the number of residential units granted full consent prior to the introduction of CIL and then a sharp drop following its implementation.

Savills picked out the London Borough of Redbridge which had delivered only 271 homes in the 12 months following the introduction of CIL, against a target of 760 units.

Delayed CIL payments

Looking at the report in further detail, it outlined CIL’s failure to deliver the necessary infrastructure funding to support development. Of the 16 councils surveyed, they had collected an average of just £300,000.

Payments were being delayed to the use of policies staggering the collection of the levy over the course of the development.

Replacement provision needed

Richard Carr believes that CIL will have to be replaced in due course. He is of the opinion that it has stopped a lot of schemes coming forward.

He has personally been involved in one scheme this year in Poole, Dorset that has a CIL provision of over £1m for 36 apartments. However, he believes that CIL should not have been implemented by the current government, as it’s basically a half baked leftover from the previous Labour administration, which was a poorly thought out idea with negative consequences.