Development guidance - Developer Contributions
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Description
When applying for full permission or planning permission in principle to build in Highland, applicants can be required to make a financial payment towards service and infrastructure provision where there is insufficient capacity to support future development. Such payments are known as developer contributions and are regularly required for facilities including schools, roads and the provision of affordable housing.
The guidance requires all scales of residential development, including single houses, to make proportionate contributions towards such facilities. The guidance explains that in most instances, single houses will receive an 80 per cent discount with the total financial payment varying from zero up to around £3,000 per house.
Developer contribution costs should be budgeted for when buying land for development and working out project costs. Ahead of submitting a planning application likely developer contribution costs should be calculated by the developer using the adoped guidance below and through the Pre-Application Advice Service. The exact amount payable will be confirmed at the point that a planning application is determined.
Updated Rates - Education and Community Facilities
On 4 May 2023 the Economy and Infrastructure Committee agreed updated developer contribution rates for education and community facilities. This applies to all planning applications received from the date of Committee. The Committee report can be found on the Economy and Infrastructure Committee webpage. The press release can be found here.
Education developer contributions are informed by the school roll forecasts. These have been informed by an updated review of Pupil Product Ratios across Highland.
Developer Contributions Protocol
The Developer Contributions Protocol outlines how partners can contribute to the decisions about the infrastructure required to support and manage the implications of development, and how the eligibility of projects for Developer Contributions is confirmed. It highlights the stages of the planning process where different types of partners and communities can contribute to these decisions, and how decisions will be made where there are different views on what is required and how developer contributions are spent.
Adopted Supplementary Guidance (2018)
The Developer Contributions Supplementary Guidance was adopted on 2 November 2018 and forms part of the Council’s Development Plan which is used to determine planning applications in Highland. Approval to adopt the guidance was granted by Scottish Ministers and Members of the Highland Council’s 16 August 2018 Environment, Development and Infrastructure Committee.
Please note that the labelling of Map 4.1 has been updated to accurately reflect the developer contribution requirements set out in paragraph 4.4.
Infrastructure and developer contribution requirements for particular areas are also set out in the following:
- Area Local Development Plans and their Action / Delivery Programmes which identify settlement wide and site specific developer requirements.
- Area specific guidance listed in our Developer Guidance A-Z which includes:
- City Centre Development Brief covering public realm, travel/parking, affordable housing and open space etc.
- Torvean & Ness Side Development Brief and Inverness East Development Brief requiring contributions towards major infrastructure for the west and east of the city.
- Inshes and Milton of Leys Development Brief, Inshes and Raigmore Development Brief and the Inverness Southern Distributor Road (SDR) Agreement requiring contributions towards major infrastructure for the south of the city.
- Muirtown and South Kessock Development Brief and the Longman Core Development Brief which look to regenerate these parts of the city.
- Dingwall Developer Contributions which requires financial contributions towards the Kinnairdie Link Road.
- Education developer contributions are informed by the school roll forecasts. These have been informed by the School Pupil Product Ratio Review, September 2017.
School Land Costs
Developers must safeguard and make available land for major school extensions or new schools. The cost of school land acquisition must be spread across housing developers within the relevant school catchment in the same way as school build costs. Action or Delivery Programmes identify the school catchments where major extensions or new schools are needed, together with those which need additional land for school provision.
Until the Council obtains control or purchases land for a major extension or new school, the cost of additional land for schools has been set based on prevailing community land use values. These values have been verified by an independent chartered valuation surveyor and are outlined below for all applicable school catchments. Read our further breakdown
Primary School Land Costs (August 2018)
Settlement: Aviemore
School Catchment: Aviemore Primary
Land Cost Per House: £154
Land Cost Per Flat: £87Settlement: Fort William
School Catchment: Caol Primary
Land Cost Per House: £77
Land Cost Per Flat: £44Settlement: Inverness East
School Catchment: Raigmore, Smithton and Duncan Forbes Primaries
Land Cost Per House: £154
Land Cost Per Flat: £87Settlement: Muir of Ord
School Catchment: Tarradale Primary
Land Cost Per House: £108
Land Cost Per Flat: £61Secondary School Land Costs (August 2018)
Settlement: Inverness East
School Catchment: Culloden Academy and Millburn Academy Secondaries
Land Cost Per House: £91
Land Cost Per Flat: £52When looking to obtain control or purchase a new school site, we will determine the market value of that site. This could be more than the prevailing community land use values set out above and will ultimately reflect the agreement reached between the landowner or developer and the Council. Once we have control of the site (or when agreement of the school site’s land value has been reached, e.g. by a concluded legal agreement) the developer contribution school land costs for that school catchment will be updated to proportionally recover the value of the site / price paid. Prevailing community land values are subject to regular review and will be periodically updated; as such these figures are not subject to indexation.
Affordable housing
Before submitting a planning application, developers are strongly encouraged contact our housing service to agree the phasing, number, type and mix of affordable housing on site.
Affordable housing must be delievered in accordance with Firm Foundations, Design Brief: Building Homes for the Highlands. The basic specification required includes the following aspects listed below:
- Meet Silver Aspects 1 and 2
- Include a Home Working Space
- Include ducting infrastructure for EV Charge Point
- Include an approved Fire Suppression system
- Include provision which enable Full Fibre Digitally connectivity
Developments of four or more homes require to contribute 25% equivalent of affordable housing in areas of need. 15% of the 25% affordable housing requirement must be wheelchair liveable.
Developments of less than four homes (Small Scale Housing Sites) also require to make an equivalent affordable housing contribution in areas of need and in certain other circumstances.
Commuted affordable housing payments will only be acceptable on an exceptional basis and will be assessed on a case by case basis.
Please note that contribution rates within the Cairngorms National Park Authority will differ from other areas of Highland. For housing development within the Park, commuted sum payments for proposals of more than 4 houses require a contribution of £18,500 per house and for 1 - 3 houses £1,850 per house (01 April 2024) in line with its Housing Supplementary Guidance.
Benchmark values
As set out in the Developer Contributions Supplementary Guidance, we adopt a sequential approach to the delivery of affordable housing. Where on site provision is proposed, the affordable homes must be sold at a price equal to the benchmark values in force at that time. The latest Benchmark Affordable Housing Values, October 2021 are:
East Mainland
2 Person - £149,544
3 Person - £166,161
4 Person - £174,469
5 Person - £182, 778
6 Person - £191,086
7 Person - £199,394West Mainland and Skye
2 Person - £157,150
3 Person - £174,610
4 Person - £183,343
5 Person - £192,070
6 Person - £200,803
7 Person - £209,530Additional Options (figures are the same for East Mainland and West Mainland and Skye)
Zero Carbon Heating
2 Person - £3,600
3 Person - £4,000
4 Person - £4,200
5 Person - £4,400
6 Person - £4,600
7 Person - £4,800Balconies
2 Person - £3,600
3 Person - £4,000
4 Person - £4,200
5 Person - £4,400
6 Person - £4,600
7 Person - £4,800Benchmark affordable housing values are subject to regular review in line with Scottish Government grant funding; as such, these figures are not subject to indexation.
Please contact devplans@highland.gov.uk if you need any further information.
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Strategic Environmental Assessment
As with all plans, policies and strategies we produce, our supplementary guidance has been subject to a Strategic Environmental Assessment to assess the level of significance of any environmental impacts.