Greater Norwich residential CIL rates pose "significant threat" to scheme viability, says examiner

The Partnership, which includes Broadland District Council, Norwich City Council and South Norfolk Council, had proposed in its draft charging schedules (DCS) the creation of two charging zones for residential development.

Residential development in Zone A, which covers the inner parts of the area, was subject to a proposed rate of £115 per square metre. A rate of £75 per sq m was proposed for Zone B, which covers the outer parts of the area. In Norwich City only, a rate of £100 per sq m was proposed for flats in blocks of five storeys and above.

The examiner said in his report that the proposed rates posed a "significant threat" to the viability of schemes and that the rates should be reduced by around 35%.

"Within the Greater Norwich area the residential market is not robust and the rates suggested would not meet the NPPF requirement that they “support and incentivise new development”," he said.

The examiner recommended for the levy to be set at £75 per sq m for residential development in Zone A and at £50 in Zone B. The levy on flats in Norwich of five storeys and above is recommended at £65 per square metre.

The examiner recommended approval of the DCS, subject to his modifications. He said that, for non-residential developments, the Council had met its objective of "achieving a reasonable level of income to address an acknowledged gap in infrastructure funding, while ensuring that a range of development remains viable across the area".

“The inspector has agreed with the principle of introducing a CIL, however we are disappointed that he has said the levy for residential development must be set at a lower rate than we proposed. We have questioned this aspect of his report, which has delayed its publication," said GNDP chair and Norwich City council leader Brenda Arthur.

"It is now for the individual councils to decide whether or not they wish to adopt the proposals and in making this decision, we would need to think through the implications of adopting at this level," she said.

"Although the lower level of residential CIL may help kick-start housing growth in the greater Norwich area it does raise issues about how the supporting infrastructure will be delivered. And on this, we will be watching the market carefully to see if evidence exists that can be used to justify increasing levels in due course," Arthur said.

The Council said that, if the individual councils agree on adoption, the CIL is likely to come into effect in July.