Out-Law News 1 min. read
07 Sep 2012, 4:49 pm
The Council's viability study recommended that the Council charge three different rates for residential development, which range from £180 per square metre for residential development to £40 per sq m, dependent on location.
"The differences in residential land values vary across the District. For example Swanage landowners can expect a return of four times that of an Upton landowner and double that of a landowner in Wareham," the PDCS said. "Therefore different CIL rates are proposed for residential development across the District.
The Council has proposed (7-pages /1.5MB PDF) to levy a charge of £180 per sq m of residential development in the 'Swanage and The Coast' areas and has proposed a levy of £100 per sq m for residential development in the 'Purbeck Rural Fringe' area. For residential development in Upton, a levy of £40 per sq m is proposed.
The Council has proposed a range of charges for other development across the District which includes a £20 per sq m levy on Financial and Professional services development in the town centre, for drinking establishments and for hot food takeaways.
Retail development is proposed to be levied at a rate of £75 per sq m of development. However, a zero rate levy is proposed for development uses including research and development, offices, light industrial and general industrial uses and storage and distribution.
The Council has also proposed a zero rate levy for non residential institutions and assembly and leisure development.
"A rough estimate indicates that applying these rates to development between 2014 and 2027 could raise around £9 million towards the £30m funding gap for use on improving infrastructure," the PDCS said. "However, higher CIL rates would reduce the Council’s priority of delivering 40-50% affordable housing on schemes of 2 dwellings or more, particularly in Upton."
Consultation on the proposed charges is open until 16 October. The Council plans to publish its Draft Charging Schedule for consultation in March 2013, with adoption planned for February 2014.
