Levelling Up and Regeneration Bill 2022-23: Affordable Housing and the Infrastructure Levy

This flagship item of legislation is continuing to progress its way slowly through Parliament and is currently at the Report Stage in House of Lords, prior to its 3^rd Reading.

This legislation will have a wide ranging impact across England and Wales.  One of the biggest changes will be to Community Infrastructure Levy, which will be retained by Greater London and Wales, but the rest of England will have a new Infrastructure Levy system, which will be non-negotiable and set locally. It will also eventually replace s.106 contributions.

Local Authorities must provide an exemption for Charities, where they would be liable to pay for the development or if the building or structure is to wholly or mainly used for a charitable purpose. They may also provide full or partial exemptions for institutions established for charitable purposes.

The Levy itself can be used for a wider range of “infrastructure” including

(a) roads and other transport facilities, (b) flood defences, (c) schools and other educational facilities, (d) medical facilities, (e) sporting and recreational facilities, (f) open spaces,  (g) affordable housing, (h) facilities and equipment for emergency and rescue services, (i) facilities and spaces which— (i) preserve or improve the natural environment, or (ii) enable or facilitate enjoyment of the natural environment, and (j) facilities and spaces for the mitigation of, and adaption to, climate change.

There may well be scope for further exploration as the definition of affordable housing is given as:

“affordable housing” means— (a) social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008, and (b) any other description of housing that IL regulations may specify.

This is an very important clause, as it could well allow almshouses, as community housing to be considered as “affordable housing” for the purposes of receiving funding from the Infrastructure Levy.  The Infrastructure Levy regulations will be made by Statutory Instrument.

The Almshouse Association (with your support) has already been active (see Questions to Parliament ) in trying to get this definition widened for s.106 funding. The latest position from Government is indicating that they wish to leave Local Authorities to decide, however we will push for a clear national position.