We get quite a few enquiries responding to the question of whether development can benefit from either the planning Vacant Building Credit, the CIL ‘in use’ building credit or is it possible to claim both.
The answer is – potentially both. But you need to organise your affairs appropriately preferably before you make any planning application. If in doubt, please call: 01392 840002.
The following notes will give you a useful guide.
Planning Policy-- What is Vacant Building Credit?
The Vacant Building Credit is set out in the NPPF (2025) at para 65:
65. Provision of affordable housing should not be sought for residential developments that are not major developments, other than in designated rural areas (where policies may set out a lower threshold of 5 units or fewer). To support the re-use of brownfield land, where vacant buildings are being reused or redeveloped, any affordable housing contribution due should be reduced by a proportionate amount
Footnote 30 Equivalent to the existing gross floorspace of the existing buildings. This does not apply to vacant buildings which have been abandoned, or to major development on land within or released from the Green Belt, for which the ‘Golden Rules’ requirements set out in paragraphs 156-157 of this Framework should apply.
In theory the guidance is as straightforward as it sounds.If your development is equal in size or smaller than the existing buildings onsite, you should provide no affordable housing, and if its bigger the tariff for affordable housing is reduced pro rata.
Community Infrastructure Levy - What is the ‘In Use Building Credit’
The In Use building credit is set out at Schedule 1 Part 1 of the consolidated CIL Regulations.
A deduction of the area ‘KR’ is subtracted from the total floor space to be provided by a planning permission.
KR is defined as-- the aggregate of the gross internal areasof the following—
(i) retained parts of in-use buildings.
“in-use building” means a building which—
(i) is a relevant building, and
(ii) contains a part that has been in lawful use for a continuous period of at least six months
within the period of three years ending on the day planning permission first permits
NB the building MUST be standing on the day permission is granted.
Double Relief
The sweet spot is to have a building that has been in use for 6 months in the last three years but is vacant on the day planning for development is granted.
LPA Push back
It is common for LPA’s to produce policy notes that endeavour to defeat claims for double relief.
Community Infrastructure Levy
That approach must necessarily fail for CIL because LPA planning policy cannot change the provisions of the CIL regulations.
Planning Policy – Vacant Building Credit.
Planning law is driven by S38(6) of the Planning and Compensation Act which provides that an adopted local plan has primacy over the NPPF if there is a conflict between the two. The wording is below:
“If regard is to be had to the development plan for the purpose of any determination to be made under the planning Acts the determination must be made in accordance with the plan unless material considerations indicate otherwise.”
The juxtaposition between the NPPF and Local Planning Policy means that a properly adopted planning policy (ie the LONDON Plan) can trump the provisions of the NPPF. But that is rarely the situation.
So, if your LPA is attempting to deny you the use of the Vacant Building Credit the first step is to look at the Local Plan – if it is silent on the VBC, then you are in a good position to insist that the LPA apply the VBC to your development (if appropriate).
Some LPA’s endeavour to overcome any shortcomings in their Local Plan by adopting Special Planning Guidance (SPG) or a Special Planning Document (SPD). This approach is only effective if the underlying Local Plan mentions the Vacant Building Credit.
Developer Push Back
This is technical area of Planning – which is objectively driven by rules and regulations.
Please get in touch if you have any queries on Vacant Building Credit / In Use Building Credit, their relationship with each other, and opportunities to pro-actively adopt mitigation strategies.
