New research by the Home Builders Federation shows that an estimated £8bn of developer contributions is sitting unused in local authority accounts

A new set of research by the Home Builders Federation shows that local authority bank accounts are sitting on an alarming £8bn of developer investments.

The money includes £6bn from Section 106 agreements and £2bn from the Community Infrastructure Levy (CIL).

The research received responses from 208 councils

The research consisted of a Freedom of Information survey that saw responses from 208 local authorities.

The responses showed that, on average, local authority accounts contain £19m in unspent Section 106 infrastructure contributions.

The results of the research are concerning when considering the lack of funding being invested into construction by the government at the moment.

Developer contributions are intended to fund affordable housing, infrastructure, and amenities to improve the local area.

The research demonstrates a lack of willingness to spend developer contributions

The research is telling of either a lack of willingness or capacity to spend developer investments, which in turn prevents communities from improving and fuels misinformation regarding a lack of infrastructure in objections to developments.

Neil Jefferson, Home Builders Federation CEO, said: “Each year developers contribute around £7 billion to local authorities for the provision of local infrastructure, affordable housing and education, recreational and health facilities but some councils are increasingly failing to invest this cash into the services that so desperately need it.

“Investment in new housing delivery brings unrivalled economic and social benefits to communities but too many of these advantages are going unseen by local people. With the Government desperate to find money to invest in infrastructure to drive growth, it is nonsensical to have billions sat in council bank accounts.

“Furthermore, a lack of infrastructure provision is often cited as a reason to oppose development, yet this pipeline of billions of pounds of unspent infrastructure funding is too often underappreciated in debates about the impact of new development.

“Whilst appreciating the pressures and constraints on councils, we simply have to find a better way to ensure this money is spent promptly to benefit local communities, support local services and drive growth.”

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