Council Has £29million Unspent Affordable Housing Contributions
Third highest amount of any local authority in England and Wales
Hammersmith and Fulham Council says it is delivering 21 site including this one on Lillie Road
October 28, 2024
A newly published piece of research has revealed that Hammersmith & Fulham Council has the third highest amount of unspent affordable housing contributions in England and Wales.
It is currently sitting on £29 million in cash secured via developer payments according to The Home Builders Federation (HBF).
The HBF’s report investigated how much local authorities in England and Wales are yet to spend from Section 106 and Community Infrastructure Levy (CIL) payments. Both of these are given as a condition of the grant of planning approval, with Section 106 agreements negotiated to mitigate the impacts of particular schemes and CIL a charge used to fund local infrastructure projects.
According to HBF’s data, which was compiled via a large-scale Freedom of Information (FoI) exercise, councils in England and Wales are sitting on more than £8 billion of payments from developers including over £6bn from Section 106 and £2bn from CIL.
A spokesperson for the HBF said, “Home builders know only too well about the difficulties of sourcing land and delivering housing in London, but it is important that communities in which new housing is provided see the financial, community and social benefits that new homes bring with them.
“With London boroughs sitting on considerable sums paid by builders to support community infrastructure and new affordable housing, local residents – and taxpayers – are not seeing the benefits. As the housing crisis in London worsens and the cost of providing temporary accommodation spirals, it must be a priority for councils to deliver on these commitments.”
Six of the top ten local authorities on the list are in London with a total close to £160 million in unspent contributions. The City of London Corporation alone has nearly £70 million more than any other council.
A spokesperson for the City of London Corporation said due to the large volume of development across the Square Mile ‘it is no surprise that we collect a high amount of funding’.
Cllr Adam Hug, housing spokesperson for the Local Government Association (LGA) and leader of Westminster City Council, said while funds may be classed as unspent, ‘it is important to look at what has been allocated by the council instead to understand how the council plans to spend the money’.
to making sure new development delivers positive change for new and existing communities. Section 106 contributions are not only central to this, but vital in helping us create thriving neighbourhoods.
Hammersmith and Fulham Council said Section 106 funds allocated for affordable housing are being used to increase the proportion of affordable homes in the local authority’s development programme. Currently 21 sites are being delivered, 14 by the council and seven in partnership with housing associations and developers. More than 1,800 homes have been built or are underway, 65 per cent of which are affordable.
London Councils estimates more than 183,000 people in the capital are homeless and living in temporary accommodation. The umbrella group’s analysis found borough councils collectively spend an average of £114m a month on temporary accommodation, with a 662 per cent increase in families placed in B&Bs.
Ben Lynch - Local Democracy Reporter