link to ringley website
  • Home
  • About Us
    About us & leadership Awards Savings for Clients Case Studies Green Management Strategies Market Overview Leasehold Reform Campaign Money Back Guarantee
  • Our Services
    • Asset Management
      • UK Asset Management
      • Project Monitoring
      • ESG Consultancy & Implementation
      • PropTech & Living Sectors Platform
      • Marketing Insights
      • Resident Journey
      • Stabilised Assets
      • UK Build to Rent
      • UK Later Living
      • UK Co-Living
      • UK Student Accommodation
      • UK Single Family Housing
    • Block Management
      • Overview - London
      • Overview - Wales & West
      • Overview - Southwest
      • Right to Manage
      • Freehold Management
      • Resident Management
      • Estates of Houses
      • Ground Rent Collection
      • How to change agent?
      • Block Management Services
      • Can't afford an agent?
      • Legal & Tribunals
      • Top 10 Tips
      • Report an incident
    • Commercial Management
    • Law
      • Overview
      • Meet The Team
      • Recommendations
      • Right to Manage
      • Lease Extensions
      • Freehold Purchase
      • Absentee Freeholder
      • Court Appointed Manager
      • Conveyancing - Wales
      • Conveyancing - England
      • Service Charge/Rent Arrears Recovery
      • Company Secretary
    • Property Valuations
      • Overview
      • Loan Security
      • Company Accounts
      • Lease Extensions
      • Freehold Purchase
      • Rent Reviews
      • Ground Rent Investment
      • Development Valuations
      • Expert Witness & Litigation
      • Tax, Trusts & Accounts Valuations
      • Trading Business
      • Compulsory Purchase
      • Residential Valuations
    • Engineering
      • Overview
      • EWS1 Consultancy
      • Asbestos
      • Contract Administration
      • Fire Assesment
      • Homebuyer Survey
      • Building Survey
      • Schedules
      • Party Wall Matters
      • Principle Designer
      • Disability Access Audits
      • Small Building Works
      • Fire Door Inspection
      • Insurance Valuations
    • Property Accounting
      • Finance
      • Quote For Service Charge Accounts?
      • Property Accounting Law
      • Accounting Updates
      • To Audit or Not?
    • Plant & Facilities Management
      • Plant & Facilities Management
      • Fire Door Inspection APP
      • Fire Safety Update
    • Site Staffing Solutions
      • Ringley Integrated Site Staff Solutions
    • Leasehold Guidance
      • Overview
      • Right to Manage
      • Purchasing The Freehold
      • Court Appointed Manager
      • Absentee Freeholder
  • Insights
    Asset Management Articles Block Management Blogs Publications BTR Rental Market Blogs Customer Insights FAQ - Ask Our Experts Insurance Calculator
  • ESG
  • E-books
  • Get In Touch
  •    
  • Work with us
  •  
  • Portal Login
Infrastructure Levy And Its Potential Impact On Development In The UK

Written by: Marry-Anne Bowring 20/01/2023
  482       0
Responsive image

Introduction: The Levelling Up Plan and the Infrastructure Levy

The Boris Johnson government’s “levelling up” agenda aims to bridge the gap between rich and poor areas in the UK, fostering economic growth and creating opportunities. A key component of this plan is the Infrastructure Levy, designed to replace the Community Infrastructure Levy (CIL), Section 106 agreements, and affordable housing contributions. This single, non-negotiable levy seeks to ensure developers contribute their fair share toward community infrastructure. However, its implementation has sparked debate, with many questioning its potential effectiveness.

How the Infrastructure Levy Works: A Simplified Approach

The Infrastructure Levy is calculated based on the final sale value of a development, applying a flat rate to the gross development value. This approach aims to simplify the current system, which involves complex negotiations under Section 106 agreements and CIL payments. By streamlining the process, the government hopes to reduce delays, provide developers with more certainty, and empower local authorities to fund infrastructure projects more effectively.

Challenges to Affordable Housing Delivery

One of the major concerns surrounding the Infrastructure Levy is its potential impact on affordable housing. Critics argue that private developers, driven by profit motives, may avoid building affordable homes or sell off allocated plots. Additionally, market fluctuations and legislative changes between planning permission and signing agreements can jeopardize the financial viability of developments. This could lead to a reduction in affordable housing, undermining the levy’s intended goals.

The Downfalls of the Current System: CIL and Section 106

The existing CIL system, introduced to simplify infrastructure funding, has struggled to meet its objectives. When used alongside Section 106 agreements, it has failed to generate sufficient funds for infrastructure needs, particularly for larger developments. The Infrastructure Levy aims to address these shortcomings by introducing a set levy agreement, reducing last-minute negotiations, and giving local authorities more control over infrastructure planning.

Potential Hurdles for Local Authorities and Developers

Local authorities may face significant challenges in implementing the Infrastructure Levy. Years of underfunding have weakened technical planning and architecture teams, while land ownership issues and competition with private developers could further complicate matters. Additionally, the success of the levy depends on support from multiple stakeholders, including landowners and local councils, who may resist changes that affect land values or require new skills and resources.

The Road Ahead: Uncertainty and Regional Disparities

The government has yet to clarify whether the Infrastructure Levy will be applied at a standard rate or vary regionally. Property experts warn that a one-size-fits-all approach could exacerbate regional disparities in land values, potentially burdening certain areas and hindering consistent housing delivery. Moreover, the political landscape adds another layer of uncertainty, as some landowners anticipate a change in government that could repeal or alter the levy. For the levelling up plan to succeed, the Infrastructure Levy must strike a delicate balance between raising funds and maintaining a viable land market.



Property Management Block Management
POPULAR POSTS

Solar panels on flats - what you need to know

Is noise getting you down?

Ground Rent: Fines for Landlords Who Charge Ground Rent

High Court: Right to Rent does breach human rights

Landlords beware - Don't believe everything you read!

RECENT POSTS

The UK Government Takes Decisive Steps to Meet Its Target of Delivering 1.5 Million Homes

UK Leasehold Reform: Moving Towards Commonhold Ownership

Government to Introduce Single Construction Regulator by 2028 in Response to Grenfell Inquiry

Real Estate Experts Urge House of Lords to Amend Renters Reform Bill

Real Estate Developers Boost Investment in UK Student Accommodation Sector



Blogs related:

ASSET MANAGEMENT
Virtual viewings. Is this the future for lettings?
Will viewing homes remotely become the new normal? In the current climate, if you have an empty or soon-to-be-empty property you may well be worried about finding a new tenant and wondering what your letting agent is doing about it? At Life By Ringley we’ve got the solution to this problem. In the last few weeks, we have adapted quickly to virtual viewings and they are now on offer to all our clients.In fact, we’re no strangers to the concept....

Read


ASSET MANAGEMENT
Net Zero:  A call to change leasehold law if flat owners are to help 
Owning a leasehold property means you have the right to live in a property for a fixed period, but you do not own the land beneath it. As a result, making sustainable modifications is not straightforward.Leaseholders cannot make substantial changes without permission from the freeholder.A license to alter is often required, making even internal improvements challenging.External improvements, such as solar panels or insulation upgrades, are oft...

Read


ASSET MANAGEMENT
When will we address fire safety in low rise blocks of flats?
Last week, the RICS proposed new guidance designed to reduce the number of buildings that will need an EWS1 fire safety assessment before flats in the block can be mortgaged or re-mortgaged. A consultation on the proposals runs until 25 January, so if you are a leaseholder in an affected block or you are impacted by the use of these forms in any way, you can have your say here.Taking lower rise buildings out of the equation is good news for le...

Read


Meet our Expert Property Commentators

Mary-Anne Bowring FTPI FRICS FARLA FCABE Founder/Head of Asset Management

Strategic partnerships, holistic delivery/ opportunities, growth, value engineering, thought leadership

Ian Barber MD BTR Mobilisation & Leasing

Runs HQ & site lease-up teams. Drives rent pricing, mobilisation, marketing, happy residents!

Jon Curtis MRICS Head of Building Engineering

Chartered Building Surveyor. Lectures on EWS1 & building safety. Runs CapEx programmes.

Kate Robinson MTPI MD Blocks/FM Management (London Region)

Master plan setup, ops and staffing and resident engagement. ISO45001 champion.

Lee Harle Partner Ringley Law

Plot conveyancing. Debt litigation. Group Company Secretary.

Anthony Kingdon MIRPM AssocRICS MD Blocks/FM Management (North Region)

Stakeholder engagement. Mixed tenure specialist. Budget management. Plant audit, PPM compliance.

Chris Georgalis MRICS Head of Commercial Valuation

Chartered Valuer. Rental valuations: retail, leisure. IRR modelling and valuations for secured lending. Compulsory purchase & rent reviews

Nichola Pughe MRICS Head of Residential Valuation

Chartered Valuer. Rental development & mixed use valuations, IRR modelling. Leasehold enfranchisement specialist

Natalie Birmingham Helpdesk Support Manager

Trainer & Helpdesk Manager: people, systems,contractors. ISO45001 supply chain accreditation.

Steve Norman Planning Director

Land due diligence (opportunities & constraints) Has contributed to a number of award winning schemes.


inshights shared - link to planetrent blogs

Landlord blog
Read landlord blog
inshights shared - link to ringley blogs

Property blogs
Read property blogs
inshights shared - link to ringley articles

Property articles
Read property articles
inshights shared - link to ringley ebooks

E-books
Read E-books

link to ringley social media facebook link to ringley social media instagram link to ringley social media linkedin link to ringley social media x-twitter
link to ringley social media x-twitter for small device
link to ringley social media linkedin for small device
link to ringley social media instagram for small device
link to ringley social media facebook for small device
  • Ringley Group
  • About us
  • CSR / ESG
  • BusyLiving
  • PlanetRent
  • Talk to us
  • Careers
  • Ask a Question
  • Insights
  • Articles
  • Blogs
  • Subscribe
  • BTR & PRS Buildings
  • What we do
  • Asset Management
  • Block Management
  • Facilities Management
  • Property Law
  • Surveying / Valuation
  • Building Engineering
  • Financial Services
  • Managing Agents
  • Block Management Locations
  • Co-working
  • Renting & Letting
  • Right to Manage
  • Contractor Management
  • Space to Work
  • Fees and Client Money Protections
  • Email: solutions@ringley.co.uk

  • Emergency line 1: 0207 428 2056

  • Emergency line 2: 0207 267 2900

  • Report an incident
  • Our Offices
  • London
  • Ringley House
  • 1 Castle Road
  • London
  • NW1 8PR
  • T: 0207 267 2900
  • London
  • Ringley House
  • 47 Rochester Place
  • London
  • NW1 9JL
  • Manchester
  • 11 Swan Street
  • Northern Quarter
  • Manchester
  • M4 5JJ
  • T: 0330 174 7777
  • Cardiff
  • 122 West Bute Street
  • Cardiff Bay
  • Cardiff
  • CF10 5LJ
  • T: 0330 174 7747
Privacy Policy
Ringley Staff Dashboard
link to ifsm website link to tpi website link to tpos website link to rics website link to ukgbc website link to government security industry authority website link to alep website

All content © copyright 2025. Ringley Limited. All Rights reserved. Ringley Limited, incorporated and registered in England and wales. Registered office: Ringley House, 1 Castle Road, London, NW1 8PR. Company No. 03302438
Terms of use | Privacy Policy | Modern slavery act | COVID-19 risk assessment