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13/08/2012

Eric Pickles Takes Steps To Kickstart Stalled Development

Expert brokers will spearhead a fresh drive to get stalled housing deals up and running and builders back on moth-balled sites, Communities Secretary Eric Pickles has announced.

Mr Pickles is concerned that too much development is being stalled because of economically unrealistic agreements negotiated between councils and developers at the height of the housing boom. This results in no development, no regeneration and no community benefits at all when agreements are no longer economically viable.

The deals, known legally as Section 106 agreements, require developers to make a financial contribution to the community or provide housing, amenities or infrastructure as part of their planning permission.

Teams of intermediaries will now offer a free-of-charge advice and support service to councils and developers and will be available to help kick-start renegotiations of these deals to stop them being a barrier to getting building underway.

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Brokers will begin work immediately with an initial wave of councils that are keen to address obstacles that are preventing development in their area before working with other councils around the country. The experts will:

•provide technical expertise to unlock negotiations

•act as go-betweens in disputes

•offer access to a range of support services.

The Government is also launching a consultation that proposes giving developers the option to ask councils to renegotiate Section 106 obligations if they were agreed prior to April 2010. Currently these obligations cannot be renegotiated for five years once a council refuses a request for voluntary renegotiation by a developer.

Communities Secretary Eric Pickles said: "Tackling problems with stalled development is essential to getting builders back on moth-balled sites and building the homes we need. There is huge potential in sites to boost local economies and we simply cannot afford to have them lying idle because of earlier agreements that are no longer viable.

"The support and advice the expert brokers will offer is one of the many measures we have introduced to get development underway and I hope councils grab this chance to make use of the support we are offering.

"Our reforms to the planning system are already cutting planning red tape and making the system simpler and more accessible to communities and businesses. And further changes we're introducing will simplify national planning policy even more and streamline the planning application process."

(CD/GK)

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