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ARTICLE · 07 APRIL 2016

Sun Will Go Down On Section 106ba/Bc Numbers Game Appeals

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We have commented on the initial impact of the changes to the Section 106 regime made by the Growth and Infrastructure Act 2013 to allow developers to challenge affordable housing obligations on viability grounds.

United KingdomReal Estate and Construction

We have commented on the initial impact of the changes to the Section 106 regime made by the Growth and Infrastructure Act 2013 to allow developers to challenge affordable housing obligations on viability grounds. The new Section 106BA gave developers a right to ask councils to review housing obligations. Section 106BC gave a right to appeal against review outcomes. Both came into force on 25 April 2013, subject to a 'sunset clause' killing off the changes after 30 April 2016 unless otherwise extended. They will now die on 30 April but uncertainties remain about the transitional picture.

Government About Turn

The Spending Review and Autumn Statement 2015 committed to extending the sunset clause. The anticipated Order has not materialised and we understand that the Government has now decided not to do so. This may simply be a reflection of the fact that we are no longer in recession and stalled schemes should be seen as bad planning rather than bad luck. It may

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