S106 - Housing Contribution Change

[hmpmarketing]

Hi All,

 

A couple of days ago, I decided to look on Rightmove for a plot that was previously being sold back in the beginning of 2015. At the time it had no planning permission, the plot was part of school grounds and had a bungalow that used to be the caretakers property. There was a covenant on it saying you could not build anything 2 stories high.

 

Surprisingly it got planning permission for 3 2-bed 2-storey houses! They are now trying to sell it for double the price they were asking for 2 years ago. 

 

Anyways, I went to look for the planning application, it had been approved for the 3 houses. The decision was made a week after my application (April 2016) and it had attached a S106 agreement for the amount of 18k relating to affordable housing contributions. Same for my application however I had to pay a third of that amount.

 

A newer application was made last August and it requested that the contribution towards Affordable Housing were no longer required in relation to the newer application and that the new application should be re-determined in the absence of the S106 agreement. This is due to a judgement made the 11th of May (see attached).

 

So my question is, I have already paid and settled my S106 agreement (actually about a month ago), would I be able to get a "refund" based on this same decision, taking into consideration that the council approved the new application above with no S106 obligations attached?

 

Thanks for your input and help!

decision.pdf

Edited April 3, 2017 by hmpmarketing

[jack]

3 hours ago, hmpmarketing said:

There was a covenant on it saying you could not build anything 2 stories high.

 

Surprisingly it got planning permission for 3 2-bed 2-storey houses! 

 

I can't help you with your main question, but the planning department doesn't pay any heed to covenants.  In this case, they'll be for the future purchasers to worry about!

[hmpmarketing]

Thanks @jack!

[Ferdinand]

 

Alexander Pope:

Quote

 

"A little learning is a dang'rous thing;

Drink deep, or taste not the Pierian spring."

 

 

My thoughts (not advice):

 

 

1 - 6k is not really a lot if you get into consultants and process. eg a QC is perhaps 3-5k for a start if they are representing you. The best way to get a cheap QC or legal bod who can go toe to toe on this is probably to marry one, or be very closely connected in the profession.

 

2 - There *may* be an arguable case, but it is possible you are the wrong side of the deadline.Or on what may currently be the wrong side of one of several different dates. But I think you are in the position of asking your former wife to return part of a divorce settlement because you think the law says you overpaid. As a Council I would respond with a polite version of "prove it, buster".

 

3. Bit more background: 

http://www.selfbuildportal.org.uk/sources-of-finance/7-information/301-cil-s106-exemptions

https://www.homebuilding.co.uk/what-is-section-106/

 

4. Were I to try and tackle this, the only way I would consider economic to attempt for 6k would be:

 

a - A carefully argued letter to the Council, perhaps from a solicitor, arguing that the S106 was not applicable because Appeal Judgement etc. I might try and argue that since the money was obtained unlawfully (according to me), it is unlawful for the Council to spend it.

 

b - Appeal, which is free. Deadline gone.

 

c - A reapplication for planning would cost a chunk of the 6k and swallow time and elapsed time, though could potentially be done with the same documents. Could be elephant traps if you have started building. 

 

In conclusion, it may perhaps be worth a run around the houses to see where you are. Perhaps ask the free RICS Planning Advice service or ask a Planning Law blogger (Martin Goodall?) to do an article on the issue. IMO it will be an academic exercise, but perhaps you want to satisfy your curiosity.

 

My opinion:

 

In the absence of a clear legal justification and validity (which requires some homework), and a cheap way of enforcing it, this is probably not worth the candle .. short of a couple of long shots I have suggested. Take a punt if you wish, but remember to put your main effort into your house and life.

 

But personally I think 5-6k or say a few % of build cost is quite reasonable to ask of self-builders as a community contribution. I will wish metallic-sodium-in-the-bath on Councils attempting to take the pee (hello Shropshire a couple of years ago) at say 10-25% of project value, but I do not think we should have a complete opt-out.

 

Ferdinand