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Court of Appeal Upholds Reduced Affordable Housing Contributions from Small Sites

on Friday, 13 May 2016.

The Court of Appeal has found in favour of the Secretary of State and overturned the High Court judgement in West Berkshire & another v Secretary of State

The Court of Appeal has found in favour of the Secretary of State and overturned the High Court judgment in West Berkshire & another v Secretary of State.

The three appeal judges handed down their findings on 11 May 2016.

The councils had sought to challenge the government's use of a Written Ministerial Statement (WMS) to alter affordable housing policy on 28 November 2014. The WMS also brought about changes to national planning guidance. The appeal judges allowed all four grounds of appeal.

In short, the WMS stated:

'Due to the disproportionate burden of developer contributions on small scale developers, for sites of 10-units or less, and which have a maximum combined gross floor space of 1,000 square metres, affordable housing and tariff style contributions should not be sought. This will also apply to all residential annexes and extensions.'

The government (before the WMS was quashed) had clarified that the WMS was a change in national policy and therefore all councils had to make their planning decisions in light of it. A decision taken that contradicts national policy is at risk of challenge.

The changes to planning guidance stemming from the WMS were withdrawn in 2015. We may now see an appeal to the Supreme Court, but in the meantime the effect of the Court of Appeal decision is that the WMS is lawful and the guidance can be reinstated.


For more information, please contact David Bird in our Commercial Property Law Team on 0117 314 5382.