Elmbridge

Amount sought
£111,000
Amount AchiEved
No contribution
Indicative saving
£111,000

This case involved the conversion of the existing listed building from B1 (now E) use to C3 residential, internal alterations, the demolition of an existing outbuilding to allow the erection of a single storey rear extension and the reconstruction of the side gable to create a total of 3 new flats.

Policy CS21 of the Elmbridge Borough Councils Core Strategy suggests developments of 1 – 4 units should provide a financial contribution equivalent to 20% of the gross number of dwellings. In this instance, a contribution of £111,000.

Elmbridge Borough Council seeks a financial contribution equivalent to 20% of the gross development. In this instance a contribution of circa £111,000 was sought.

S106 Managements Financial Viability Appraisal (FVA) demonstrated a significant deficit, meaning that even without the inclusion of S106 contributions the scheme was not generating the sufficient levels of profit to provide the offsite financial contribution towards affordable housing.

S106M also utilised the opportunity to apply Vacant Building Credit (VBC), meaning that the developer should be awarded a financial credit against the vacant floor space. In this case, the vacant floor space equated to 90% of the proposed development. Therefore, regardless of the viability of the scheme, the maximum contribution that could be requested was reduced £11,100.

Elmbridge Borough Council instructed BPC Surveyors to review the S106 Management FVA. Their review agreed that the scheme was not viable, and a significantly reduced contribution was appropriate.

Our blog post on Vacant Building Credit can be seen here:

https://www.s106management.co.uk/news/vacant-building-credit-what-is-it-and-how-can-it-be-used

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

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

East Devon

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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

Teignbridge

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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

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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

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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

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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

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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
1 unit and £81,000 cash in lieu
Amount AchiEved
No contribution
Indicative saving
£150,000
Amount sought
7 units onsite affordable
Amount AchiEved
£100,000 cash in lieu, deferred
Indicative saving
£500,000

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