DEVELOPERS in some of Poole’s most upmarket areas could be hit for six by a new property levy.
Some could face an additional development cost running into tens of thousands of pounds but are unaware of what is about to hit them, according to Canford Cliffs law firm Ellis Jones Solicitors.
“It’s like a train hurtling down the tracks and alarming that so many local developers have no idea of what’s heading in their direction,” said property solicitor James Kidner (pictured below).
His comments follow the end of public consultation by Poole Borough Council on a draft charging schedule for the new Community Infrastructure Levy (CIL).
The CIL is a payment towards local community infrastructure based on the net additional increase in floor space as a result of development.
It is likely to be adopted by planning authorities with charges on both residential and commercial developments. Proceeds will be spent on delivering infrastructure.
The charge will be set by square metre with Poole proposing to set a rate, for residential development, of £150 per square metre in Sandbanks, Branksome Park and Canford Cliffs.
The council has also suggested a figure of £100 per square metre in Poole town centre and £75 per square metre for the remainder of the borough.
The proposed charges are subject to confirmation but are expected to apply for granted planning permissions from as early as July this year although October/November is thought more likely.
James said: “A developer demolishing a 200 square metre house in Branksome Park and replacing it with three houses, each at say 200 square metres, could land up with a potential CIL payment of £60,000.
“That’s on top of what the developer already paid for the land and aside from any Section 106 payments which will still be retained as development specific obligations, such as social housing.
“In short, it’s set to be a massive extra cost but CIL cannot be ignored and councils will have the power to add charges and interest if the required notices are not served prior to development starting or the required rate is not paid. They can also serve stop notices until payment has been made.”
James said developers should assess their development plans for this year, and beyond, in light of CIL and take professional advice. “Don’t delay, act today,” he added.
Picture caption: Levy warning: James Kidner, property solicitor at Ellis Jones’ Canford Cliffs office.
Note to journalists: Ellis Jones is one of the largest law firms in Dorset and West Hampshire with approximately 100 staff including six partners. It has offices in Bournemouth, Canford Cliffs, Ringwood and Swanage offering a wide range of services to individuals and businesses.
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