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Housing and Planning Bill – latest update

As the Housing and Planning Bill continues to be debated in the House of Lords, further amendments are being advanced.

During the second day of the Report Stage on 13 April, Peers voted in favour of an amendment which allows Local Authorities discretion as to the number of starter homes to be provided on a development site.

What does this mean?

Local authorities will be in a position to grant planning permission provided that they have had regard to the provision of starter homes based on their assessment of local housing need and viability.

This represents a move away from the Government’s intention to require at least 20% of the residential units on large development sites to be provided as starter homes.

In another important amendment, the time period for the application of the 20% starter homes discount was changed to 20 years.

Originally, the Bill was drafted to allow buyers to sell their starter home property at full market value after a period of five years.

However, due to concerns raised by a number of major lenders that this could distort market values and incentivise people to overpay, the Peers have voted in favour of an amendment to change the period for which the discount applies to 20 years.

A third day of the report stage has been arranged for 18 April and we will therefore be keeping a keen eye on any further amendments.

At Ward Hadaway we have a dedicated team of planning lawyers who are particularly experienced in representing the interests of both the public and private sectors of the housebuilding industry.

If you have any questions about the Housing and Planning Bill, please get in touch.

Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.

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