Vacant credit debate rages on

The debate surrounding new planning guidance designed to help boost housebuilding but which could actually reduce council’s affordable housing pools has caught the attention of the national media. The issue, exclusively revealed by Estates Gazette last week, was the topic of debate on a BBC London radio show this morning. EG senior reporter Joanne Bourke and Westminster Property Association chief executive Daniel Van Gelder shared their opinions on the implications of the planning guidance. Van Gelder said: “I support Westminster city council’s stated opposition to the vacant building credit and we are also urging the government to issue additional new guidance which encourages the retention or provision of office space in areas of significant commercial activity, such as central London, which serves as an engine for economic growth for both London and the UK economy as a whole.” Westminster city council believes it could lose as much as £1bn a year from its affordable housing pool as part of the credit. Other London councils have since come out against the credit, including Islington and Southwark. The new credit, introduced by housing minister Brandon Lewis in late November, allows for buildings that are vacant when planning is secured for residential conversion to only pay an affordable contribution on any new space. Prior to its introduction, the provision was levied on the full size of the building. Lewis said: “It’s crazy to tax empty buildings being brought into productive use.  Such tariffs hinder regeneration and lead to the blight of empty, boarded properties.” London mayor Boris Johnson has so far declined to comment. Listen to Van Gelder and Bourke on the BBC here (fast forward to 01.09.55) >>