Legal and regulatory Compliance (L2)

Question 1

How is pre application advice sought for a S73 application?

Question 2

Why are S106 Agreements required and what are reasonable requirements?

Question 3

What is the GLA stage 1 & 2 referral and the appeals process?

Question 4

Outline developer’s obligations under the CDM Regulations and the Equalities Act?

Question 5

What is the role of the GLA?

Answer 5

The Mayor of London leads the GLA. Together they produce the London Plan, a strategic planning document for London as whole. The London Plan includes policies on housing, transport, infrastructure, design, heritage and culture, green space, the economy and economic growth.

The GLA is responsible for strategic planning, policing, the fire service, most aspects of transport and economic development.

Question 6

What constitutes a high-risk building in the Building Safety Act?Explain your knowledge of the Building Safety Act ?

Question 7

What are the general requirements regarding professional indemnity insurance set by the RICS

Question 8

What is CIL, what act introduced it and what is its purpose?

Answer 8

Community Infrastructure Levy

Introduced in the CIL Regulations (2010) - purpose of the levy is to ensure that costs of providing infrastructure to support development of an area can be funded by owners or developers of land.

Question 9

Key aspects of the Localism Act (2011)? What influence has it has on the UK planning system?

Answer 9

The Localism Act aim was to transfer power from central to local government by giving councils greater control through neighbourhood planning for example. Another feature is that developers are obliged to consult with local communities before submitting major planning applications.

Question 10

Where is a S278 from and how do they work?

Answer 10

It is a section of the Highways Act 1980 that allows developers to enter into a legal agreement with the council to make permanent alterations or improvements to a public highway, as part of a planning approval.

Question 11

What is the main difference between s106 and CIL?

Answer 11

s106 are site-specific obligations such as providing affordable housing and determining working hours, whereas CIL is a fixed payment which facilitates offsite/ community contributions. s106 is negotiable and CIL is not negotiable.

Question 12

What is a s106 agreement? Why is it required? What legislation is it from?

Answer 12

It is a legally binding agreement signed by a developer in order to mitigate the site-specific impacts of a development. They are obligations such as the provision of affordable housing, infrastructure needs or public facilities. Introduced in the Town and Country Planning Act 1990.

Question 13

What is affordable housing? What are the different types of tenure available?

Answer 13

It is a form of s106 requirement under the Town and Country Planning Act 1990.

Shared ownership: circa 70% of MV, Affordable rent: circa 55% of MV, Social rent: circa 40% of MV

Question 14

What is the Bank of England’s interest rate? And how will it impact the housing industry?

Answer 14

Recent increase to 5.25%. This means sales rate is likely to slow as it becomes more expensive to take a mortgage. This means buyers more likely to opt for the rental market. In terms of development finance, higher interest rates make borrowing costs higher, hence meaning projects could become unviable.

Question 15

What is VAT charged on?

Answer 15

VAT = Value Added Tax. Land is exempt from VAT, VAT is charged on building fees and professional fees. A landlord can choose to elect a property to charge VAT to recover VAT on their costs expended.

Question 16

Where do I think build costs are going? Why have they risen so much?

Answer 16

According to BCIS, build costs have risen 20% from 2021 to 2023. There are signs that the rise is beginning to slow, although there is still significant labour shortages. They have risen due to high material demand and lower supply with the war in Ukraine impacting the supply chain and increasing energy prices.

Question 17

How are S106 and CIL payments calculated in respect of your Clapham Park examples?

Question 18

Please elaborate on why the building safety act would impact your scheme?

Question 19

When is CIL exempt?

Answer 19

CIL is payable on Net Additional private space.
Exempt if it meets the criteria for charity purposes.
Exempt for private residential use (self-builders or primary residence)
Exempt on affordable housing.

Question 20

What is CIL indexed to? And how do you calculate the current rate?

Answer 20

Calculating the net additional increase in floor space. Calculated using Gross Internal Area.
Used the Lambeth Charging Schedule
Used BCIS - All in TPI Index
Calculated Mayoral CIL
The site was eligible for social housing relief
I liaised with the Lambeth CIL officer and issued the liability notice and Commencement Notice ahead of works commencement of development.

Question 21

What was the TPI indexation rate for the last quarter?

Question 22

Difference between affordable rent and intermediate/ shared ownership rent tenures?

Answer 22

Intermediate: Part buy, part rent. Buy a share of the property and the remaining is rented. In time the future shares can be bought and the property owned outright.

Affordable rent: These are fully owned by the Housing Association and are subject to control that requires the level to be no more than 80% of the local market rent.

Social Rent: The same as affordable rent bu these properties must be no more than 55% of the local market rent.

Question 23

What are discussed for S106 negotiations?

Answer 23

These discussions take place directly with the planning officer.
Definitions should be considered, such as ‘commencement’ e.g. does this include site preparation works or is it the first ‘dig’.
Also when payments are required to avoid cashflow issues.

Question 24

Can you give me an idea of the different levels of SDLT?

Question 25

If CIL is charged by the Local Authority, then you check the charging rate (£/sqm) on the LPA website. You mention that one of your responsibilities is for CIL calculation. Could you briefly describe what CIL is and how you calculate it?

Answer 25

If CIL is charged by the Local Authority, then you check the charging rate (£/sqm) on the LPA website.

Question 26

You use the terms ‘practical and legal completion’ and I wonder if you could explain your understanding of these to the panel?

Question 27

You’ve identified a strategic site and approach the land owner. What options for securement would you proposed to your client?

Question 28

What is a restrictive covenant? How do you remove a restrictive covenant?

Question 29

What would the upper tribunal look at in terms of reasonableness if you want to modify/ discharge a restrictive covenant?

Question 30

How is BCIS all-in Tender Price Index calculated?

Answer 30

It measures the trend of contractors’ pricing levels in accepted tenders, i.e. cost to client, in the previous quarter (mid-quarter to mid-quarter).

Question 31

What are the legal requirements within the 2010 CIL Regulations?

Answer 31

Development may be liable for a charge under CIL if your local planning authority has chosen to set a charge in its area.

A Commencement Notice must be served to the council prior to the commencement of development and CIL must be paid on the required payment dates.

Question 32

How did you go about obtaining offers from HA’s?

Answer 32

Send over the relevant units with an indicative Market Value and indicative programme for completion in order to compile the offers.

Question 33

What are Building Regulations B. F & L

Answer 33

Part B – Fire Safety
a) A fire detection and alarm system should be installed where either of the following applies.
ai) A new habitable room is provided above or below the ground storey.
aii) A new habitable room is provided at the ground storey, without a final exit.

Part F – Ventilation
a) The aim of requirement F1(1) is to protect the health of occupants of the building by providing adequate ventilation. Without adequate ventilation, mould and internal air pollution might become hazardous to health.

Part L – Conservation of Fuel and Power
a) Sets out that all new dwellings should be built with the aim to increase conservation of fuel and power.
b) L1(a) assesses unwanted heat losses from the dwelling are limited by meeting the standards through the review of building fabric, including walls, floors, roof, windows and openings.

Question 34

What is the difference between a development agreement and members agreement?

Question 35

What was the benefit of the joint venture between Countryside Properties UK limited and Metropolitan Living Limited?

Question 36

Tell me about your experience with PPA’s and why they can be useful?

Question 37

Key elements of the Neighbourhood Planning Regulations 2012?

Answer 37

Sets out the procedure for the preparation of neighbourhood development plans.

Question 38

What weight can a Neighbourhood Plan play in local planning?

Answer 38

Neighbourhood Plans provide local communities with the chance to manage the quality of development of their areas e.g. by setting local design code guidance & suggesting that brownfield development should be the focus.

Question 39

What does the Independent Examiner consider when looking at a Neighbourhood Plan?

Answer 39

Is the Plan consistent with the national planning policy?

Is the Plan consistent with local planning policy?

Does the plan promote the principles of sustainable development?

Has the Town Council sufficiently engaged with the local community?

If the examiner is satisfied that it has, and considers the Plan meets the above conditions, then the Plan will go to a referendum of the local electorate.

Question 40

What are regulation 14 and 16 of the Neighbourhood Planning legislation?

Answer 40

Regulation 14: require the draft neighbourhood plan proposal to be the subject of a pre-submission consultation before it is submitted to the local authority for independent examination. The consultation should last at least 6 weeks.

Regulation 16: When the statutory 6 week Publication and consultation period has finished the next stage of the Neighbourhood Plan making process is to appoint an examiner. The examiner will then issue a report, which could include some recommended changes to the draft plan. If this part of the process is successful the next stage is a public Referendum.

Question 41

What is a restrictive covenant?

Answer 41

This is a condition on land that restricts or prevents a specific action.

Question 42

How do you remove a restrictive covenant?

Answer 42

If all parties who benefit from the restrictive covenant agree, a Deed of Release can be used to remove it.

If not, you can apply to the Lands Tribunal/ Upper Tribunal to have it removed.

Question 43

What would the upper tribunal look at in terms of reasonableness if you want to modify/ discharge a restrictive covenant?

Answer 43

1. If the restriction is deemed obsolete as a result of changes to the property or the neighbourhood.
2. If the restriction impedes the use of the land
3. Agreement with the beneficiary of the restriction

Usually takes up to 24 months to get it removed.

Question 44

What were the affordable housing requirements in Aldershot and how did the affordable housing effect the value of the site?

Answer 44

The S106 required 50% affordable (22 units).

80% (18) of these affordable rent and 20% (4) shared ownership.

This high amount of affordable housing requirement lowered the GDV of the scheme and hence the Land Value I advised my client they could offer.

Question 45

What are the different afforable housing tenures?

Answer 45

Shared ownership: circa 70% of MV
Affordable rent: circa 55% of MV
Social rent: circa 40% of MV