Draft Charging Schedule - Jan 2017

Object

Representation ID: 70412

Received: 20/02/2017

Respondent: Persimmon Homes Central

Viability should be amended to reflect the cost that house builders and developers are expected to pay. We recommend that BNP adopt a minimum value of £310,000 per gross hectare (£125,000 per acre) rather than £247,000 per gross hectare (£100,000 per acre)
Where possible achieved net sales prices should be referred to in the first instance as opposed to marketing/guide prices. The assumed 5% deductions for negotiations on guide prices could vary greatly, and suggest that BNP undertake a more thorough search of achieved sales values.
The minimum acceptable profit margin is 20% on GDV blended across the private and affordable dwellings. This is supported by the Manor appeal decision in Shinfield (APP/X0360/A/12/2179141, 8 Jan 2013)
There are no site typologies of sites between 100 and 300 units, but sites of this size amount to nearly 2000 dwellings
Onsite infrastructure costs should be assumed at between £17,000-£23,000 as suggested in the Harman Report. We would suggest that £20,000 per dwelling is an appropriate amount.
Charge for Zone A has increased even though conclusion in 6.19 is that such sites are unable to make much of a contribution as well as a meaningful affordable housing contribution. This would impact on developers bringing forward sites when considering CIL and full affordable housing obligation.
For Residential (strategic sites) in Zones A, C and D all CIL rates have increased even though they are unjustifiable by BNP's own analysis
The proportion of levy paid upon or shortly after commencement should be minimised (e.g. 10-15%) as this is the point at which schemes are absorbing a lot of cost and are likely to be cash-negative. It would also be more reasonable to expect payments of over £2m to made over a period of 2 years or more.