Out-Law / Your Daily Need-To-Know

Developers of residential schemes within Durham County Council's administrative area will be liable to pay community infrastructure levy (CIL) rates of up to £60 per square metre, depending on location, under proposals published by the Council.

The Council launched a consultation on its draft charging schedule (DCS) last week. It has proposed to divide the County into four different charging zones with residential rates of £60 per sq m in the Durham City and Chester-le-street zone; £30 per sq m in West Durham; £15 per sq m in the County Durham zone and a nil rate levy across its 'Housing Market Renewal' (HMR) areas.

The Council said it had taken a "sensible, cautious approach" when setting the residential CIL rates to reflect the uncertainty in the housing market and the fact that "there may be further small falls" before a period of recovery.

For retail developments it has proposed to set a nil rate levy in the HMR areas, with a rate of £150 per sq m to apply across the three other areas. A draft nil rate levy has been set to apply across the County for all other developments in Use Class A, including shops, financial and professional services and food and drink uses, as well as for Use Class B developments, including business, industry, storage and distribution uses.

The Council has proposed a rate of £150 per sq m for student accommodation across the County. Extra Care Housing developments will be subject to a nil rate levy if the DCS is adopted in its current form.

The consultation is open for comments until 6 December. The Council said it aims to adopt CIL in December 2014. 

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