Councils who back plans for new homes will be able to raise hundreds of millions of pounds to spend on vital infrastructure like roads, schools, parks and health centres.
Housing Minister Yvette Cooper set out how the new Community Infrastructure Levy (CIL) will help fund massive new investment to sustain new homes, as part of the drive to support quality neighbourhoods.
Ministers believe it is essential that new developments have parks, play areas and proper facilities and that more is done to ease transport pressures when new homes are built. They are also keen to ensure that small developments which can have a cumulative impact on areas make a contribution to local infrastructure and facilities.
Independent evidence from Kate Barker and the National Housing and Planning Advice Unit shows that there is a long-term need for more housing to meet rising demand. But it is seen as crucial that the infrastructure is in place to create prosperous and sustainable communities.
The Levy will give councils the power to set charges to pay for infrastructure when a new development takes place, which is expected to unlock hundreds of millions of pounds more for local infrastructure and services.
Under the current system, only 14% of all residential planning permissions make any contribution to the cost of supporting infrastructure and these generally cover the largest schemes. However, even minor developments generate a need for infrastructure and services in an area.
Ministers think it is right that all developments pay their fair share and those who benefit financially when planning permission is given should contribute back to the local community by funding local infrastructure. That is why the new Community Infrastructure Levy (CIL) has been included in the Planning Bill.
The new powers will allow councils to set a CIL for their area following an assessment of local infrastructure needs and consultation with their local community. Different types and sizes of development would pay different amounts depending on local needs to help ensure that the new infrastructure needed to maintain sustainable growth is provided.
These new powers are contained in the Planning Bill, which has just begun its passage through the committee stage. It is anticipated that local councils will be able to take advantage of these powers from spring 2009.
England
Work started on a £9 million housing regeneration development in Carlisle.
The development of 77 homes for sale is the third phase of a major regeneration scheme at the City's Raffles estate.
This is the latest phase of a major regeneration programme which is being driven by a partnership of the local community, Carlisle City Council, Lovell and Carlisle Housing Association.
Work was about to start on a £4 million mixed tenure scheme to build 26 new homes at Reepham, near Norwich.
The new development of two-, three- and four-bedroom houses will create 16 homes for open market sale and ten affordable homes for rent and shared ownership for housing group Circle Anglia.
The scheme is set to be completed early in 2009.
A £14.3 million project got under way to build 131 new homes for Places for People in the Infirmary Waterside area of Blackburn, Lancashire.
The homes are being built on a brownfield site which forms part of the Elevate East Lancashire Housing Market Renewal Pathfinder. It follows a major clearance programme in the area by Blackburn with Darwen Borough Council in partnership with Elevate.
The next two-and-a-half years will see the development of new houses and bungalows for rent, shared ownership and open market sale.
Scotland
Work got underway on developments to bring nearly 80 affordable homes to Dunfermline and Blairhall in west Fife.
The developments by Fife and Kingdom housing associations, as part of the Fife Housing Association Alliance, will see a total investment of around £8.4 million.
In total, the new schemes will see 50 homes for rent and 28 homes for shared ownership.
Work got underway on a Home Scotland development that will bring 42 new affordable homes to Dundee. Twenty-eight of the homes will be available for affordable rent, with the remaining 14 for sale through shared-equity agreements.
This is the first time that shared-equity has been made available in Dundee.