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Students: Housing

Question for Department for Levelling Up, Housing and Communities

UIN 105591, tabled on 17 January 2022

To ask the Secretary of State for Levelling Up, Housing and Communities, if the Government will make an assessment of the potential merits of bringing forward legislative proposals for additional means by which student accommodation providers can contribute to local authority finances.

Answered on

25 January 2022

Local planning authorities are able to collect developer contributions through the Community Infrastructure Levy and section 106 planning obligations. The levy is a set charge on most new development to help address the cumulative impact of development by funding infrastructure provision anywhere across the authority's area.

Different charges can be set for different types of development, based on viability evidence. In Bristol for example, the levy charge for student accommodation is currently £148 per square metre citywide, while the charge for other residential development in Bristol is either £103 or £74 per square metre, depending on location. Local planning authorities can also seek a bespoke section 106 planning obligation, where appropriate, to mitigate the impact of a specific development.

An Infrastructure Funding Statement, detailing an authority's request, receipt and use of developer contributions, is required to be published annually.

We are exploring replacing the existing system of developer contributions with a new Infrastructure Levy, which would also be chargeable on this type of development.