Government acts to encourage more small brownfield development
Local developers have criticised the York Council Leadership as house building numbers have stalled in the City. Figures released by the “Centre for City’s” reveal that the number of new homes built last year was among the lowest in the country.
Although the figures are disputed by Council planners, there is no doubt that building work has been slower over the last couple of years than might have been expected as the country emerged from the recession.
The number of sites granted planning permission has increased over the last 2 years meaning that there is a potential supply of land sufficient to allow around 800 additional homes to be constructed each year during the next five years.
Small developers claim that onerous S106 restrictions (which include a requirement to make a contribution towards the supply of affordable homes) are preventing a start being made on some sites.
The government has now intervened and announced that there will be no affordable housing requirement on sites of 10 or less homes.
Full details of the announcement, made last month, can be found here. Click
It has been suggested that the York Council should “fast track” the change and reduce the S106 requirements immediately.
An increase in the numbers of homes coming onto the open market would have the effect of stabilising house prices which are showing signs of increasing in York (having been level for the last 8 years)
Stable house prices do benefit first time buyers.
However, additionally, the York Council should proceed more quickly with the provision of additional low rent social housing.
At present the York Council has a surplus of nearly £13 million on its (Council house) rent account.
The Centre for City’s report will be discussed at a Council meeting next week