East Suffolk CIL Charging Schedule: Modifications

Statement of Modifications

The tables below sets out the Council's proposed modifications to the Draft East Suffolk CIL Charging Schedule. Strikethrough has been used to represent a deletion. Bold has been used to represent text to be added.

Each modification is set out separately. The tables generally runs in the order of the draft CIL Charging Schedule.

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Modification Number

Document Reference

Modification

Main Reasons for Modification

1

Front cover

Date updated

The date on the front cover has been changed to June 2022, deleting "Consultation 11th November to 23rd December 2021" from the previous version consulted on in autumn 2021.

Modification Number

Document Reference

Modification

Main Reasons for Modification

2

Purpose of this this document - first sentence.

This document is the Draft East Suffolk Community Infrastructure Levy (CIL) Charging Schedule.

New first sentence to explain the document is the (updated) draft version of the CIL Charging Schedule (which will be submitted for examination).

Modification Number

Document Reference

Modification

Main Reasons for Modification

3

                                        

Table 1.3 - Strategic Sites - Policy SCLP12.29: South Saxmundham Garden Neighbourhood. Rate of CIL per sqm.

                                        

£90£100

                                        

Updated to take into consideration representations received during the consultation and wider market changes detailed in the Aspinall Verdi CIL Review Update report (June 2022) including Appendix 2 (Market Value Report). Rate of CIL per sqm changed due to various factors, the main ones which are:

·       Affordable Housing Net area per unit (sqm) changed to the same as the Open Market Floor net area per unit (sqm) (60sqm for 1 bed house, 80sqm for 2 bed house, 100sqm for 3 bed house, 120sqm for 4 bed house, 55sqm for 1 bed flat and 65sqm for 2 bed flat).

·       Open market sales values increased. East Suffolk average prices increased 8-13% between June 2021 - January 2022 (see Market Value Report by Aspinall Verdi, June 2022).

·       Open Market Housing Values increased in the Mid Higher zone:

o   1 bed house increased from £200,000 to £210,000.

o   2 bed house increased from £235,000 to £260,000.

o   3 bed house increased from £295,000 to £325,000.

o   4 bed house increased from £350,000 to £380,000.

o   1 bed flat from £180,000 to £195,000.

o   2 bed flat from £200,000 to £215,000.

·       Affordable housing sales values increased (50% value of market housing).

o   1 bed house increased from £100,000 to £105,000.

o   2 bed house increased from £117,500 to £130,000.

o   3 bed house increased from £147,500 to £162,500.

o   4 bed house increased from £175,000 to £190,000.

o   1 bed flat from £90,000 to £97,500.

o   2 bed flat from £100,000 to £107,500.

Construction costs increased from £1,033 psm per house to £1,069 psm and from £1,158 psm per flat to £1,194 psm (BCIS build costs up 6% since Aspinall Verdi's October 2021 CIL Review report).

·       Planning application professional fees, surveys and reports increased.

·       Statutory planning application fees (residential) increased.

·       Cost of garages (£8k) now allowed for explicitly (separately). Garage allowance of 50% for 3 bed properties, 100% for 4 bed properties and 150% for 5 bed properties.

·       Carbon/ Energy Reduction/ Future Home Standard cost for houses increased from £4,847 to £8,286 per house and from £2,256 to £4,143 per flat.

·       Electric vehicle charging points costs remain £500 per house but increased from £2,500 per 4 flats to £2,500 per flat.

·       Increase in disposal costs (Marketing and Promotion, Residential Sales Agent Costs and Residential Sales Legal Costs).

 

S106 contribution costs updated in line with East Suffolk Infrastructure Funding Statement 2020-21 published in December 2021 (www.eastsuffolk.gov.uk/assets/Planning/East-Suffolk-Infrastructure-Funding-Statement-2020-21.pdf) where specific costs are known, and in other cases estimates have been made. S106 contributions indicative breakdown of infrastructure spending over the estimated build period of the site:

·       Primary School S106 contribution increased to £4,434,855 with 5 payments phased over 9 years.

·       Early Years Setting S106 contribution increased to £1,784,195 with annual payments over 8 years.

·       Police S106 contribution kept at £633,753 with annual payments over 8 years.

·       Health S106 contribution added £460,800 with 4 payments phased over 7 years.

·       ISPA S106 contribution kept at £754,400 with 3 payments phased over 5 years.

·       Travel planning S106 contribution added £400,000 (new cost).

On-site infrastructure costs:

·       SANG cost added at £905,000.

CIL costs:

·       Libraries £172,800.

 

The buffer of 71% has been increased to 78%. The buffers for strategic sites have been generally revised upwards slightly to reflect a slight increase in uncertainty about overall risks.

 

Overall, the increase build costs, some on-site infrastructure costs and a slight increase in the buffer have been outweighed by the increase in house prices in Saxmundham area. This means that the CIL rate for the site is proposed to be increased by £10psm to £100psm.

 

Modification Number

Document Reference

Modification

Main Reasons for Modification

4

                                             

Table 1.3 - Strategic Sites - Policy SCLP12.3: North Felixstowe Garden Neighbourhood. Rate of CIL per sqm.

                                             

£100 £65

                                             

Updated to take into consideration representations received during the consultation and wider market changes detailed in the Aspinall Verdi CIL Review Update report (June 2022) including Appendix 2 (Market Value Report). Rate of CIL per sqm changed due to various factors, the main ones which are:

·       Affordable Housing Net area per unit (sqm) changed to the same as the Open Market Floor net area per unit (sqm) (60sqm for 1 bed house, 80sqm for 2 bed house, 100sqm for 3 bed house, 120sqm for 4 bed house, 55sqm for 1 bed flat and 65sqm for 2 bed flat).

·       Open market sales values increased. East Suffolk average prices increased 8-13% between June 2021 - January 2022 (see Market Value Report by Aspinall Verdi, June 2022).

·       Open Market Housing Values increased in the Mid Higher zone:

o   1 bed house increased from £200,000 to £210,000.

o   2 bed house increased from £235,000 to £260,000.

o   3 bed house increased from £295,000 to £325,000.

o   4 bed house increased from £350,000 to £380,000.

o   1 bed flat from £180,000 to £195,000.

o   2 bed flat from £200,000 to £215,000.

·       Affordable sales values increased (50% of the value of market housing):

o   1 bed house increased from £100,000 to £105,000.

o   2 bed house increased from £117,500 to £130,000.

o   3 bed house increased from £147,500 to £162,500.

o   4 bed house increased from £175,000 to £190,000.

o   1 bed flat from £90,000 to £97,500.

o   2 bed flat from £100,000 to £107,500.

Construction costs increased from £1,033 psm per house to £1,069 psm and from £1,158 psm per flat to £1,194 psm (BCIS build costs up 6% since Aspinall Verdi's October 2021 CIL Review report).

·       Planning application professional fees, surveys and reports costs increased.

·       Statutory planning fees (residential) increased.

·       Cost of garages (£8k) now allowed for explicitly (separately). Garage allowance of 50% for 3 bed properties, 100% for 4 bed properties and 150% for 5 bed properties.

·       Carbon/ Energy Reduction/ Future Home Standard cost for houses increased from £4,847 to £8,286 per house and from £2,256 to £4,143 per flat.

·       Electric vehicle charging points costs remain £500 per house but increased from £2,500 per 4 flats to £2,500 per flat due to fresh evidence of higher costs.

·       Increase in some disposal costs (Marketing and Promotion, Residential Sales Agent Costs and Residential Sales Legal Costs).

 

S106 contribution costs updated in line with East Suffolk Infrastructure Funding Statement 2020-21 published in December 2021 (www.eastsuffolk.gov.uk/assets/Planning/East-Suffolk-Infrastructure-Funding-Statement-2020-21.pdf) where specific costs are known, and in other cases estimates have been made. S106 contributions indicative breakdown of infrastructure spending over the estimated build period of the site (12 years):

·       Primary school S106 contribution £7,746,000 with 5 phased payments over 9 years.

·       Early Years Setting S106 contribution £2,728,000 with annual payments over 12 years.

·       ISPA transport S106 contributions kept at £1,886,000 with annual payments over 12 years.

·       Police S106 contribution kept at £1,081,357 with annual payments over 12 years.

·       Health S106 contributions £560,000 with 4 phased payments over 7 years.

·       Travel planning S106 contributions £1,000,000 (new cost).

On-site infrastructure costs:

·       Access cost £3,000,000 (new cost).

·       SANG cost £2,250,000 (new cost).

CIL costs

·       Libraries £172,000.

·       HWRC improvements £1,072,000.

·       Secondary school places £800,000.

 

The buffer of 70% has been increased to 77%. The buffers for the strategic sites have been generally revised upwards slightly to reflect a slight increase in uncertainty about overall costs and risks.

 

The increased build costs, increased infrastructure costs, new infrastructure allowances for items such as secondary school placements, £2.25m for SANG, Travel Planning costs of £1m and a £3m allowance for transport/access costs, and the increased buffer, outweigh the increase in property prices, and result in the CIL rate for the site being decreased by £35psm to £65psm.

 

Note: for the record, East Suffolk Council is the landowner of part of this site.

 

Modification Number

Document Reference

Modification

Main Reasons for Modification

5

                                            

Table 1.3 - Strategic Sites - Policy WLP2.16: Land south of The Street, Carlton Colville/Gisleham. Rate of CIL per sqm.

                                            

£70 £90

                                            

Updated to take into consideration representations received during the consultation and wider market changes detailed in the Aspinall Verdi CIL Review Update report (June 2022) including Appendix 2 (Market Value Report). Rate of CIL per sqm changed due to various factors, the main ones which are:

 

·       Affordable Housing Net area per unit (sqm) changed to the same as the Open Market Floor net area per unit (sqm) (60sqm for 1 bed house, 80sqm for 2 bed house, 100sqm for 3 bed house, 120sqm for 4 bed house, 55sqm for 1 bed flat and 65sqm for 2 bed flat).

·       Open market sales values increased in the Mid zone. East Suffolk average prices increased 8-13% between June 2021 - January 2022 (see Market Value Report by Aspinall Verdi, June 2022).

·       Open Market Housing Values increased:

o   1 bed house increased from £185,000 to £195,000.

o   2 bed house increased from £215,000 to £250,000.

o   3 bed house increased from £275,000 to £305,000.

o   4 bed house increased from £315,000 to £365,000.

o   1 bed flat from £160,000 to £175,000.

o   2 bed flat from £175,000 to £195,000.

·       Affordable sales values increased (50% of the value of market housing):

o   1 bed house increased from £92,500 to £97,500.

o   2 bed house increased from £107,500 to £125,000.

o   3 bed house increased from £137,500 to £152,500.

o   4 bed house increased from £157,500 to £182,500.

o   1 bed flat from £80,000 to £87,500.

o   2 bed flat from £87,500 to £97,500.

Construction costs increased from £1,033 psm per house to £1,069 psm and from £1,158 psm per flat to £1,194 psm (BCIS build costs up 6% since Aspinall Verdi's October 2021 CIL Review report).

·       Planning application professional fees, surveys and reports increased.

·       Statutory planning fees (residential) increased.

·       Cost of garages (£8k) now allowed for explicitly (separately). Garage allowance of 50% for 3 bed properties, 100% for 4 bed properties and 150% for 5 bed properties.

·       Carbon/ Energy Reduction/ Future Home Standard cost for houses increased from £4,847 to £8,286 per house and from £2,256 to £4,143 per flat.

·       Electric vehicle charging points costs remain £500 per house but increased from £2,500 per 4 flats to £2,500 per flat due to fresh evidence of higher costs.

·       Increase in disposal costs (Marketing and Promotion, Residential Sales Agent Costs and Residential Sales Legal Costs).

 

S106 contribution costs updated in line with East Suffolk Infrastructure Funding Statement 2020-21 published in December 2021 (www.eastsuffolk.gov.uk/assets/Planning/East-Suffolk-Infrastructure-Funding-Statement-2020-21.pdf) where specific costs are known, and in other cases estimates have been made. S106 contributions indicative breakdown of infrastructure spending over the estimated build period of the site (9 years):

·       Primary School S106 contribution £4,614,300 with 5 payments phased over 9 years.

·       Early Years Setting S106 contribution £1,230,480 with annual payments 9 years.

·       Country Park S106 contribution kept at £120,000 with annual payments over 3 years.

·       Police S106 contribution £161,500 with annual payments of 9 years.

·       Travel planning S106 contribution £450,000 (new cost).

 

On-site infrastructure costs.

·       SANG £1,015,000 (new cost).

CIL costs

·       Lowestoft HWRC improvements £347,400.

·       Health improvements £760,500.

·       Secondary school places £416,700.

·       Library improvements £194,400.

 

The buffer of 77% has been increased to 79%. The buffers for the strategic sites have been generally revised upwards slightly to reflect a slight increase in uncertainty about overall costs and risks.

 

Infrastructure costs and the buffer amount have remained similar in value, while building costs and house prices have increased. The house price increases in the Carlton Colville area has outweighed other cost increases - especially because the affordable housing amount required is 20% compared to 30% at North Lowestoft and Beccles & Worlingham) - and result in the CIL rate for the site being increased by £20psm to £90psm.

 

Modification Number

Document Reference

Modification

Main Reasons for Modification

6

                                               

Table 1.3 - Strategic Sites - Policy WLP3.1: Beccles and Worlingham Garden Neighbourhood. Rate of CIL per sqm.

                                               

£40 £30

                                               

Updated to take into consideration representations received during the consultation and wider market changes detailed in the CIL Review Update report (June 2022) and Market Value report (June 2022) by Aspinall Verdi. Rate of CIL per sqm changed due to:

·       Affordable Housing Net area per unit (sqm) changed to the same as the Open Market Floor net area per unit (sqm) (60sqm for 1 bed house, 80sqm for 2 bed house, 100sqm for 3 bed house, 120sqm for 4 bed house, 55sqm for 1 bed flat and 65sqm for 2 bed flat).

·       Open market sales values increased in the Mid zone. East Suffolk average prices increased 8-13% between June 2021 - January 2022 (see Market Report by Aspinall Verdi, June 2022).

·       Open Market Housing Values increased:

o   1 bed house increased from £185,000 to £195,000.

o   2 bed house increased from £215,000 to £250,000.

o   3 bed house increased from £275,000 to £305,000.

o   4 bed house increased from £315,000 to £365,000.

o   1 bed flat from £160,000 to £175,000.

o   2 bed flat from £175,000 to £195,000.

·       Affordable sales values increased (50% of the value of market housing).

o   : bed house increased from £95,500 to £97,500.

o   2 bed house increased from £107,500 to £125,000.

o   3 bed house increased from £137,500 to £152,500.

o   4 bed house increased from £157,500 to £182,500.

o   1 bed flat from £80,000 to £87,500.

o   2 bed flat from £87,500 to £97,500.

Construction costs increased from £1,033 psm per house to £1,069 psm and from £1,158 psm per flat to £1,194 psm (BCIS build costs up 6% since Aspinall Verdi's October 2021 CIL Review report).

·       Planning application professional fees, surveys and reports increased.

·       Statutory planning fees (residential) increased.

·       Cost of garages (£8k) now allowed for explicitly (separately). Garage allowance of 50% for 3 bed properties, 100% for 4 bed properties and 150% for 5 bed properties.

·       Carbon/ Energy Reduction/ Future Home Standard cost for houses increased from £4,847 to £8,286 per house and from £2,256 to £4,143 per flat.

·       Electric vehicle charging points costs remain £500 per house but increased from £2,500 per 4 flats to £2,500 per flat due to fresh evidence of higher costs.

·       Increase in disposal costs (Marketing and Promotion, Residential Sales Agent Costs and Residential Sales Legal Costs).

 

S106 contribution costs updated in line with East Suffolk Infrastructure Funding Statement 2020-21 published in December 2021 (www.eastsuffolk.gov.uk/assets/Planning/East-Suffolk-Infrastructure-Funding-Statement-2020-21.pdf) where specific costs are known, and in other cases estimates have been made. S106 contributions indicative breakdown of infrastructure spending over the estimated build period of the site (13 years):

·       Playing pitches S106 contribution kept at £460,000 with annual payments over 13 years.

·       Primary school S106 contribution kept at £6,419,004 with 5 payments phased over 10 years.

·       Country park S106 contribution kept at £152,000 with 3 phased payments.

·       Early Years Setting at Primary school S106 contribution increased from £1,158,702 to £1,230,480 with annual payments over 13 years.

·       Early Years at Community Hub S106 contribution increased from £1,158,702 to £1,230,480 with annual payments over 13 years.

·       Pedestrian and cycle link (Ellough Road) S106 contribution £112,100 with annual payments over 13 years.

·       Police S106 contribution added £211,250 with annual payments over 13 years.

·       Travel planning S106 contribution £625,000 added.

Onsite infrastructure costs:

·       New electricity sub-stations cost increased from £160,000 to £720,000.

·       2 x junctions to existing Beccles relief road and access to employment site increased costs to £1,500,000.

·       Spine road cost added of £6,250,000.

·       SANG added £1,410,000.

CIL costs:

·       Health improvements £947,000.

·       Secondary school places £578,750.

·       Library improvements £270,000.

 

The buffer of 74% has been increased to 79%. The buffers for the strategic sites have been generally revised upwards slightly to reflect a slight increase in uncertainty about overall costs and risks.

 

The increased build costs, increased infrastructure costs - particularly £6.25m allowance for the spine road and £1.4m for SANG - new infrastructure allowances for items such as health and secondary school placements, and the increased buffer outweigh the increase in property prices. This results in the CIL rate for the site being decreased by £10psm to £30psm.

 

Modification Number

Document Reference

Modification

Main Reasons for Modification

7

Calculation of CIL Chargeable Development (new addition)

The CIL rates detailed within the Charging Schedule are outlined as a charge per square metre (sqm) of floor space. The precise amount charged for each development will be calculated by the Council in accordance with Part 5 (Regulation 40) of the CIL Regulations 2010 (as amended).

In accordance with regulation 12(d) of The Community Infrastructure Levy Regulations 2010 (as amended), an explanation of how the chargeable rate will be calculated has been added to the draft Charging Schedule.