Guidance on planning obligations following the introduction of the Community Infrastructure Levy and the adoption of the Lambeth Local Plan 2015.

Sections in this guide (click title to view)

1. Introduction

The Council responds to the impact of new development in the Borough in a number of different ways. Since October 2014 the Council has been operating the Lambeth Community Infrastructure Levy (CIL) Charging Schedule, alongside the charge for Mayoral CIL.

Many of the financial contributions that were previously collected through planning obligations to help pay for facilities and infrastructure are now covered by CIL payments. For some projects, the impact of development can be met by CIL payments alone. In other cases, for example where the way the land is used in the future needs to be managed, or where a scheme is very large, planning obligations may be necessary as well as CIL payments.

In all cases where the impacts from development are not fully met by CIL payments, the Council will look to secure planning obligations that are necessary to make the development acceptable in planning terms, directly related to the development and fairly and reasonably related in kind and in scale to the development. Assessment of the impact of development, and the corresponding need for planning obligations, is carried out as part of the consideration of individual planning applications.

Planning obligations are agreements entered into between the Council and owners of land, usually in conjunction with the granting of planning permission. They attach to the land, binding it and whoever owns it. They are also known as 'Section 106 Agreements', ‘S106 Agreements’ or 'Unilateral Undertakings'. Planning obligations may involve an agreement that the land will only be used in a particular way, the provision of facilities or infrastructure, or the making of financial contributions to the Council.

Policy D4 of the Lambeth Local Plan (adopted September 2015) sets out the Council’s policy for seeking planning obligations.

For some sorts of planning obligation – contributions in lieu of affordable housing provision on small sites, for off-site children’s play space and to offset the impact of visitor attractions – the Council’s approach to calculating contributions is set out in
Annex 10 of the Lambeth Local Plan.

For planning obligations that are not covered by Annex 10, the Council’s approach to calculating contributions is guided by its July 2013 revised Draft S106 Planning Obligations Supplementary Planning Document (SPD) produced for consultation.

Some parts of the revised draft document have been overtaken by the adoption of the Lambeth Local Plan, but other parts remain relevant. The July 2013 revised draft S106 Planning Obligations SPD arose from a review of the S106 Planning Obligations SPD that had been adopted in 2012. Much of the detailed content of the 2012 S106 Planning Obligations SPD has now been overtaken by the combination of the introduction of the Lambeth CIL and the adoption of the Lambeth Local Plan, but the document is available for reference.

2. Viability model (for affordable housing - small sites)

A viability model, contribution ready reckoner and guidance notes are available to assist with understanding the calculation of contributions in lieu of affordable housing provision for small sites under 10 residential units.

These materials are for guidance only and the final amount of contribution payable will depend on individual circumstances.

3. Section 106 toolkit (non-housing)

The Council’s Section 106 toolkit provides guidance on calculating contributions that are not covered by Annex 10 of the Lambeth Local Plan, in particular contributions relating to construction skills and training.

Choose the tab for the contribution that you wish to calculate. The toolkit will produce an indicative figure that is for guidance only. The final amount of contribution payable will depend on individual circumstances.

4. Zero Carbon Homes – new policy requirement from 1 October 2016

From 1 October 2016 the London Plan (Policy 5.2) requires new residential buildings forming part of major development proposals to be zero carbon.

The London Housing Supplementary Planning Guidance (March 2016) defines zero carbon homes as homes forming part of major development applications where the residential element of the application achieves at least a 35 per cent reduction in regulated carbon dioxide emissions (beyond Part L Building Regulations 2013) on-site (in line with London Plan Policy 5.2B). The remaining regulated carbon dioxide emissions, to 100 per cent, are to be off-set through a cash in lieu contribution to be ring fenced to secure delivery of carbon dioxide savings elsewhere (in line with London Plan Policy 5.2E).

In Lambeth, contributions will be set at £1,800 per tonne of carbon, which represents £60 per tonne over a period of 30 years. The Mayor’s Housing Standards Review Viability Assessment May 2015 indicated that contributions set at this level would not compromise housing viability.

The funds secured by the council will be ring-fenced to deliver carbon emissions savings elsewhere in the borough and will be secured through Section 106 legal agreements.

For further information and guidance please see the GLA website.