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Written question asked by Ben Everitt (Conservative) on Wednesday, 22 November 2023, in the House of Commons. It was due for an answer on Monday, 27 November 2023. It was answered by Lee Rowley (Conservative) on Friday, 1 December 2023 on behalf of the Department for Levelling Up, Housing and Communities.

Business Premises: Change of Use

Question

To ask the Secretary of State for Levelling Up, Housing and Communities, if he will make an assessment of the potential impact of the Local Authority Housing Fund on the number of (a) commercial buildings that have been converted to residential use and (b) long-term empty homes that have been converted to affordable housing.

Answer

Commercial premises can be converted to residential use under permitted development rights. Under current guidance, contributions for affordable housing should not be sought for permitted development.

The Levelling Up and Regeneration Act 2023 (the 2023 Act) introduces powers to create a new Infrastructure Levy which will reform the existing system of developer contributions in England. It will be possible for the Levy to capture land value uplift associated with permitted development, subject to provision that is made in regulations. Under our current proposals, the Infrastructure Levy will capture value uplift associated with the change of use of commercial buildings to residential use, whilst recognising the need to preserve the viability of brownfield development schemes. We are currently analysing responses to our recent technical consultation which sought views on this proposed approach.

If the Levy is charged on development it can be used to fund social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008, and any other description of housing that Infrastructure Levy regulations may specify. This is set out in new section 204A(4) (in Schedule12 of the 2023 Act). This includes Social Rent homes and Affordable Rent homes.

Following the conclusion of the first two rounds of the Local Authority Housing Fund in 2024, an evaluation will be conducted which will include an assessment on the delivery routes that participating local authorities have taken.

Secondary information

Type
Written question
Reference
3375
Session
2023-24
Grouped for answer
Yes
Subjects
Business premises Housing Affordable housing Change of use Household Support Fund
Contains statistics
Yes
Link
View this Written question on www.parliament.uk