The CIL regulations allow for the setting of differential rates (including zero rates) for different geographical areas or for different land uses across our charging areas. The CIL regulations also provide for the ability to set differential rates in relation to scales of development.
The CIL charges for residential development are shown below in Table 1 and are based on the recommendations from the CIL Viability Reports. Residential development will be charged based on whether the development is on greenfield or brownfield land, as well as on the geographical location of the development in terms of its location in a higher or lower value area(detailed in Section 6 below).
Table 1 Proposed CIL Rates
Type of development |
Current charge per square metre |
Proposed higher value |
Proposed lower value |
Housing Greenfield (9 or less units) (Including RDAs) |
£43.27 |
£150 |
£100 |
Housing Greenfield (10 or more units or sites 0.5ha or more) (including RDAs) |
£43.27 |
£150 |
£100 |
Housing Brownfield (9 or less units) (including RDAs) |
£0 |
£45 |
£0 |
Housing Brownfield (10or more units or sites 0.5ha or more) (including RDAs)
|
|
£0 |
£45 |
£0 |
Higher density flatted development Brownfield |
£0 |
N/A |
£0 |
Purpose Built Student Accommodation (PBSA) Greenfield |
£108.17 |
£110 |
£110 |
Purpose Built Student Accommodation (PBSA) Brownfield |
£108.17 |
£110 |
£110 |
Age restricted / sheltered housing Greenfield |
£0 |
£150 |
£100 |
Age restricted / sheltered housing Brownfield |
£0 |
£45 |
£0 |
Extra care / assisted living Greenfield |
£0 |
£150 |
£0 |
Extra care / assisted living Brownfield |
£0 |
£45 |
£0 |
Strategic sites (and allocated sites over 1,000 units) |
£0 |
£0 |
£0 |
The viability work tested sites which were on greenfield and brownfield land, as well as sites in Designated Rural Areas (DRAs). This was to ensure there was sufficient evidence that the proposed CIL charges were robust for all residential developments across south Worcestershire.
Further work was undertaken by Aspinall Verdi on Purpose-Built Student Accommodation in October 2023, which concluded that the existing rate of £110 should be retained. The viability evidence shows that these types of development may be unviable, however, although it is reporting as unviable developments have come forward at this set rate.
Higher density flatted typologies in the lower value zone on brownfield land were tested and found to be unviable, therefore it is not appropriate to seek CIL on these types of sites. It is recommended that for higher density flatted schemes a viability appraisal is submitted to allow EUV and vacant building credit to be factored in before negotiations on S106 and affordable housing requirements take place.
No other areas of higher density flatted typologies were tested as these are highly unlikely to come forward.
All of the strategic sites were tested and shown to be viable (July 2022) based on a policy compliant 40% affordable housing whilst allowing for the relevant cost per unit total strategic infrastructure and S106 (excluding CIL – CIL exempt). Although there is headroom to charge CIL, it is important for delivery that the infrastructure is funded through the most appropriate mechanism. S106 agreements enable more flexibility (especially in two-tier authorities) for the delivery of infrastructure compared to CIL. This is particularly the case where there is uncertainty in respect of the strategic infrastructure costs due to the stage of design. It Is therefore proposed that the CIL charging Schedule excludes all allocated sites over 1,000 units which will ensure the Charging Schedule is ’future-proofed’.
The CIL charges for retail and commercial development are as follows and are based on the recommendations from the CIL Viability Reports:
Table 2 Proposed CIL rates for retail and commercial development
Type of development |
Current charge per square metre |
Proposed charge per square metre |
Large format / discount format convenience retail |
£60 |
£200 |
Small (express) convenience retail |
£60 |
£60 |
Office use |
£0 |
£0 |
Industrial/logistics use |
£0 |
£0 |
Large format / discount format convenience retail development is proposed to be charged up to £200 per square metre (psm). It was suggested that the increase in charge is phased, however, due to the Council’s having an instalment policy, as well as the proposed changes being consulted and examined, it is proposed that the increase from £60psm to £200psm charged will not be phased.
The August 2022 South Worcestershire Retail and Commercial CIL Viability Assessment found that small (express) convenience retail formats were not viable when tested, this was believed to be due to the assumptions in respect of value which have a higher yield (6.5%). Aspinall Verdi recommended that the CIL rate of £60 psm should be retained and suggested further research and consultation be undertaken to review the value assumptions. Most new-build small convenience stores are developed by major supermarket chains and therefore a stronger yield is expected. The sensitivity tables show that a 20% increase in value, which only requires a small yield shift to 5.85%, would enable the existing CIL rate to be viable.
Further work was undertaken by Aspinall Verdi on small express retail in October 2023, concluded that any CIL rate would be unviable. Despite this, the council will continue to charge CIL at £60 psm, as developments of this type have come forward and paid CIL. Small express retail has come forward at the existing CIL rate, meaning that although tested as unviable, this does not take into account whether they are independent, or are part of larger corporations.