Commerical property: new year, new challenge

The coming year will see a number of changes and decisions that will be of great interest and importance to developers seeking to take advantage of the improved levels of confidence and activity being seen in the market.

Community infrastructure levy reforms

The Community Infrastructure Levy (CIL) was brought in by the Planning Act 2008 as a charge on developments primarily based on floor space, with all funds to be spent on local infrastructure.

The Department for Communities and Local Government has now published its response to a consultation on further reforming CIL and amendments to the regulations are proposed for the end of January 2014.

A significant change will prevent developers from being charged twice if they submit a revised full planning application after work has started for changes to the development; they will only be charged for any uplift in floorspace.

Currently, developers only have to pay CIL on the uplift if the changes during construction to the scheme can be made pursuant to a section 73 application. If they are substantial enough changes
that a new permission is required, then they are currently charged twice.

The government also plans to extend the vacancy test, so that existing floorspace can be deducted from new floorspace for buildings that have been in use for a continuous period of six months in the last three years prior to the grant of planning permission. Currently, the six-month period of use must be within a 12-month period prior to the date of grant, which is a more demanding threshold to meet.

Pre-application consultation requirements

Another significant change in
the law took place on 17 December 2013 when section 122 of the Localism Act 2011 came into force. The legislation requires developers to consult with local communities before submitting applications for certain developments.

The type of developments affected will be determined by secondary legislation, but the government has stated that it will apply to major developments, such as those of more than 200 units or those that add upwards of 10,000-square metres of new floor space.

While many such schemes already carry out some pre-application consultation, the issues around effective consultation will no doubt arise. Is an exhibition in a church hall fit for purpose or does there need to be social media consultation?