Last year the Government introduced the right to have Section 106 Infrastructure Agreements Reviewed where the onerous nature of their requirements on developers threatened the viability of housing schemes. This was to try to remove the barrier to 75000 planned homes currently baulked by those requirements.
Albany Homes faced a 20% affordable housing requirement on an 100 flat tower close to the South East London Aquatic Centre. They reckoned that the requirement could make the scheme unviable even if prices rose by 15%.
In the first review under the new legislation Albany have forced Greenwich Council to drop the requirement entirely.
Developers thinking of using the same mechanism might want to bear in mind that it’s use may affect their future relations with local planners.
As usual this blog is posted out of general interest. It does not replace the need for proper legal advice in individual cases.