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Affordable Housing: Construction

Question for Ministry of Housing, Communities and Local Government

UIN 78851, tabled on 22 July 2020

To ask the Secretary of State for Housing, Communities and Local Government, what plans he has to bring forward legislative proposals to increase developer contributions to affordable housing.

Answered on

1 September 2020

We intend to reform the current approach to developer contributions by creating a new, single system, the Infrastructure Levy. This new Levy would be a flat rate, value based charge, set nationally, at either a single rate, or at area specific rates, and charged on the final value of a development. The new Levy would be able to fund both affordable housing and supporting infrastructure. We will aim for the new Levy to raise more revenue than under the current system of developer contributions, and deliver at least as much – if not more – on-site affordable housing as at present. Our proposals are set out in our White Paper ‘Planning for the Future’ which was published on 6 August and is out to consultation until 29 October.

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