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The research, which was commissioned by the Department of Communities and Local Government (CLG), shows planning obligations have led to substantial investments by developers in roads, schools and new affordable housing.
It was found that nearly two thirds of new affordable homes are now provided through S106 agreements. In principle many of these contributions are funded by developers from the increase in land value brought about by the granting of planning permission.
The Sheffield study is the third in a series commissioned by CLG, which shows private contributions have risen from £2bn in 2003-04 to £4bn in 2005-06 and to £5bn in 2007-08, of which half in each year was for new affordable housing. This increase reflects both the greater capability of planning authorities when negotiating contributions and the rise in development values over that period providing the funds for developers to make their contributions.
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CIL
Professor Tony Crook, from the University's Department of Town and Regional Planning, comments: "The changes in the S106 policy, including the new Community Infrastructure Levy which comes into operation this month, will bring more sites into the frame for contributing to infrastructure because the Levy will apply to all but householder applications and the smallest sites and therefore these proposals have the capacity for further raising the funds available for infrastructure.
"Success will also depend on the continued capacity and capability of local planning authorities to set the Levy and to negotiate S106 contributions as well as the continuing capacity of the development industry to fund these."
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