Elmbridge

Amount sought
1 unit and £81,000 cash in lieu
Amount AchiEved
No contribution
Indicative saving
£150,000

Despite national guidance stating that affordable housing contributions should not be sought on minor developments (currently defined as less than 10 units), many of our clients come to us with local authority requests for contributions on often very small sites. These sites are often not capable of bearing such costs and cannot feasibly offer onsite affordable units as housing associations will not take them.

This case involved the demolition of an existing bungalow and erection of a 3 storey block of 8 flats. Elmbridge LPA sought 1 unit onsite and a financial contribution of £81,000 cash.

S106 Management’s viability appraisal demonstrated a significant deficit. The council’s consultants challenged several assumptions – but made a number of errors in their appraisal, including a flawed existing use value, CIL being removed as a cost, and including a ground rent assumption when the terms of the homebuilders fund precluded this.

Such errors are unfortunately a common occurrence, and would in all likelihood not have been picked up by a layperson. However, S106 Management successfully challenged the issues and the council’s consultant agreed that in fact the development was unviable and no contribution should be sought.

Contact us today to discuss your s106 affordable housing viability needs.

More case studies:

Amount sought
14 affordable dwellings
Amount AchiEved
£84,039 commuted sum in lieu of affordable housing
Indicative saving
c.£600,000
Amount sought
6 affordable dwellings
Amount AchiEved
Zero contribution
Indicative saving
£300,000

Central Bedfordshire

Read case study
Amount sought
30 affordable houses
Amount AchiEved
10 affordable houses
Indicative saving
c.£1.5 million

East Devon

Read case study
Amount sought
30 affordable houses (70% affordable rent, 30% shared ownership)
Amount AchiEved
22 affordable houses (50% affordable rent, 50% shared ownership)
Indicative saving
c.£1m +
Amount sought
n/a
Amount AchiEved
Success
Indicative saving
n/a
Amount sought
4 affordable houses
Amount AchiEved
No contribution
Indicative saving
£500,000

Elmbridge

Read case study
Amount sought
£111,000
Amount AchiEved
No contribution
Indicative saving
£111,000

Teignbridge

Read case study
Amount sought
n/a
Amount AchiEved
Success
Indicative saving
n/a
Amount sought
£90,000 CIL
Amount AchiEved
£0 CIL
Indicative saving
£90,000
Amount sought
n/a
Amount AchiEved
Success
Indicative saving
n/a

Birmingham

Read case study
Amount sought
8 affordable houses + £200,000 s106 contributions
Amount AchiEved
£100,000
Indicative saving
c.£800,000
Amount sought
5 affordable houses
Amount AchiEved
£40,000 commuted sum
Indicative saving
c.£200,000
Amount sought
9 affordable homes + £25,000 commuted sum
Amount AchiEved
No contribution
Indicative saving
c.£1 million +

Nottingham

Read case study
Amount sought
3 affordable homes
Amount AchiEved
£10,000 commuted sum
Indicative saving
£130,000
Amount sought
£350,000 commuted sum
Amount AchiEved
£50,000 commuted sum
Indicative saving
£300,000

North East Lincolnshire

Read case study
Amount sought
17 affordable dwellings onsite
Amount AchiEved
No contribution
Indicative saving
c.£1 million
Amount sought
3.5 units (3 units on site + financial contribution)
Amount AchiEved
No contribution
Indicative saving
c. £300,000

Wandsworth

Read case study
Amount sought
8 Units onsite (£1 million)
Amount AchiEved
2 Units onsite (commuted to £100,000 cash in lieu)
Indicative saving
£900,000
Amount sought
7 units onsite affordable
Amount AchiEved
£100,000 cash in lieu, deferred
Indicative saving
£500,000

High Section 106 costs are avoidable

Call us today for a free consultation. Market leader in viability assessment and Section 106 negotiation.

Call us now on
01392 840002
or
Request a call