Department for Levelling Up, Housing & Communities

We are committed to drive up standards in private rented accommodation, and we will be consulting in due course on introducing a legally binding Decent Homes Standard in the private rented sector.

We will publish an impact assessment as the Bill passes through Parliament, which will set out the costs and benefits and overall impact on the sector including both tenants and landlords. Our White Paper is based on a balanced package of reforms that support both tenants and landlords, drawing from the experience of reforms in other parts of the United Kingdom.

The Government is clear that misuse of the new grounds of possession and any attempt to find loopholes within our reforms will not be tolerated. We are engaging widely with stakeholders to assess the impact of our enforcement proposals and consider what action is necessary to prevent landlords misusing grounds for possession.

Where a landlord wishes to gain possession to sell their property, they will need to be prepared to provide evidence in court to prove that this is their intention. Introducing a ban on re-marketing and re-letting will allow tenants to more easily demonstrate misuse of the grounds – they can, for example, show that a property has been marketed online. Our assessment is that a three-month restriction acts as an additional deterrent by increasing the costs of misusing a ground substantially and is likely sufficient to prevent a rogue landlord from profiting by immediately re-letting the property at a higher rent. However, we recognise that landlords’ circumstances can legitimately change and the three-month restriction provides a balanced and proportionate approach, ensuring that good landlords are not unfairly burdened if this happens.

The three-month restriction is one part of a comprehensive approach to enforcing the new tenancy regime. Other proposals include giving local authorities the powers to issue fines to landlords and allowing tenants to seek redress through a new Ombudsman covering all private landlords.

The energy efficiency of housing in the UK is reported separately by each Administration. In 2020-21 2.9% of the English housing stock had an energy efficiency rating of A or B. In 2019 4% of the Scottish housing stock had an energy efficiency rating of A or B.

The proportion of housing in Wales and Northern Ireland with an energy efficiency rating of A or B is not reported.

The Government is committed to delivering a fairer and more effective rental market that works for both tenants and landlords. As set out in our 'A Fairer Private Rented Sector' White Paper, the Government has committed to ending Section 21 no fault evictions. At the same time, we will reform the grounds for evictions to ensure that landlords are able to get possession of their properties when they need to, these reforms will include mandatory grounds for if a landlord wishes to sell or move into the property with two months’ notice periods. To protect tenants' security, landlords will not be able to use these grounds in the first six months of a tenancy and to prevent misuse they will not be able to relet the property in the 3 months following the end of the tenancy.

The notice period we are proposing balances the needs of both tenants and landlords, giving tenants and their families time to find a new home while ensuring landlords can manage their assets when they need to do so. However, we encourage landlords to work flexibly with their tenants and notify them of their intentions as far in advance as possible. We encourage tenants who receive notice to consider their options as soon as possible and to contact their local authority if they are at risk of homelessness.

The Government is clear that it is up to the House of Lords to decide where they wish to be located, including during any potential decant of Parliament. The previous Secretary of State said in his letter that he would welcome the House of Lords playing a role in the levelling up agenda and he suggested a number of illustrative options.

The freehold of the QEII Conference Centre is held by the Secretary of State. The Restoration and Renewal programme is currently being reshaped. Tangentially, the department is taking steps to deliver clarity for the commercial users of the Centre, and good outcomes for the British taxpayer.

We are continuing to develop the policy on introducing a decent homes standard in the private rented sector and will consider the potential for cost caps as part of our consultation and engagement with stakeholders.

Where landlords want to use the new moving or selling grounds to seek possession, they will need to be prepared to prove their intention in a court. We will share further guidance on what evidence could be used to demonstrate their intent in due course, and will consider how to ensure this is as simple as possible while protecting tenants from unlawful eviction.

We encourage landlords to communicate with tenants about their intentions early, and share evidence where possible, to avoid unnecessary disputes about the legitimacy of eviction notices arising. Tenants may wish to request further information from their landlord or seek independent advice.

We are clear that attempts to misuse these grounds are unacceptable, and we will restrict landlords from remarketing or reletting the property within three months of using these grounds.

The Government is committed to delivering a fairer and more effective rental market that works for both tenants and landlords. We will deliver the manifesto commitment to end Section 21 evictions; this will mean that a landlord will only be able to evict their tenants in specific circumstances defined in law and they must be prepared to provide evidence of this in court. Under our proposals, landlords will be able to get possession of their properties when they need to, these reforms will include mandatory grounds for if a landlord wishes to sell or move into the property with two months’ notice periods. To protect tenants’ security, landlords will not be able to use these grounds in the first six months of a tenancy. Our reforms strike the right balance between improving security for tenants and ensuring landlords continue to feel confident in the market.

The English Housing Survey provides information on housing stock. The proportion of Private Rented Sector (PRS) households has remained relatively stable for nearly a decade. The PRS was 19% of stock in 2013-14, increased to 20% in 2015-16 and 2016-17 and then went back to 19% thereafter.

We continue to monitor the Office for National Statistics rental price statistics as an indicator of demand and will evaluate the impact of the private rented reforms on the sector.

Town and parish councils have an important role in improving the well-being of their communities and helping them overcome challenges, including climate change. The Government welcomes the 2021 report by the National Association of Local Councils (NALC), who we meet regularly with at a ministerial and official level.

The Levelling Up White Paper outlines the UK Government’s plans to set up a Neighbourhood Governance Review to examine the effectiveness of current arrangements and make it easier for local people and community groups to come together to set local priorities and shape the future of their neighbourhoods. As the membership body for parish councils, NALC will be a key stakeholder of this work.

This Government is committed to the Right to Buy, which has helped nearly two million social housing tenants to realise their dream of home ownership.

We want housing association tenants to have the same opportunity as local authority tenants and to be able to enjoy the benefits that homeownership brings. That is why the Prime Minister announced on the 9 June 2022 the intention to extend the Right to Buy to housing association tenants.

We will work closely with the housing association sector on the design of the scheme, including consideration of the impact on housing association stock levels and their balance sheets. We will make sure that the scheme is designed in a way that enables the homes sold to be replaced one-for-one, and we will produce a full impact assessment of this policy in due course, ahead of the scheme’s introduction.

This Government is committed to the Right to Buy, which has helped nearly two million social housing tenants to realise their dream of home ownership.

We want housing association tenants to have the same opportunity as local authority tenants and to be able to enjoy the benefits that homeownership brings. That is why the Prime Minister announced on the 9 June 2022 the intention to extend the Right to Buy to housing association tenants.

We will work closely with the housing association sector on the design of the scheme, including consideration of the impact on housing association stock levels and their balance sheets. We will make sure that the scheme is designed in a way that enables the homes sold to be replaced one-for-one, and we will produce a full impact assessment of this policy in due course, ahead of the scheme’s introduction.

Ministers and officials regularly visit communities across the UK, to hear from a range of voices from all tiers of government, the public and private sectors, and community and voluntary groups

In the Levelling Up White Paper the UK Government committed to a Review of Neighbourhood Governance, including the role and functions of parish councils. This will look at how to make it easier for local people to come together to set local priorities and shape the future of their neighbourhoods. As part of this work, we will want to hear from a range of parish councils about their work and the challenges they face.

DLUHC granted the Local Government Association £19.2 million in 2019-20, £19.2 million in 2020-21, £18.8 million in 2021-22 and £18 million in 2022-23, to deliver local government sector support programmes.

No sector support grants for local government improvement were provided by DLUHC to the National Association of Local Councils during this period.

The Levelling Up White Paper outlines the UK Government's commitment to establish a Neighbourhood Governance Review. This will explore the current effectiveness of neighbourhood governance models and how they can be strengthened, including the role of town and parish councils.

Elections are essential for good local democracy. Parish and town council elections are delivered by the principal local authorities for their areas, who will communicate with local electorates on forthcoming elections as they consider appropriate. They are supported in this by the independent Electoral Commission, who, as well as running national awareness campaigns, produce resources and materials to improve public understanding of all elections, available for use by local authorities

As part of a forthcoming Review of Neighbourhood Governance announced in the Levelling Up White Paper, we will be reviewing the effectiveness of current neighbourhood governance including parish and town councils. Through the review, we want to make it easier for people to participate and shape the future of their neighbourhoods.

As set out in the Levelling Up White Paper, the UK Government is committed to making it easier for local people to come together to set local priorities and improve their places. The Review of Neighbourhood Governance in England will examine the effectiveness of current arrangements including the role and functions of parish councils, and how to make them quicker and easier to establish. As part of the review, we will engage with communities and representative bodies. Further detail on plans for the review will be made available in due course.

My Government places great emphasis on ensuring Coastal Communities are at the forefront of the Levelling Up agenda. Our £4.8 billion Levelling Up Fund will invest in every part of the UK, including coastal areas and I am keen to see bids come forward from coastal communities in the second round of the Fund. Regeneration and Infrastructure projects - which have the potential to boost private investment - will be a key focus of this work

Furthermore, the UK Shared Prosperity Fund will provide £2.6 billion of investment across the whole of the United Kingdom by 2025, with building pride in place, including in coastal communities, a key theme of the Fund's work. Every coastal community in the UK will receive an allocation and places will be empowered to identify and build on their own strengths and needs at a local level

Levelling Up funding will unlock the potential of coastal communities by regenerating town centres and getting infrastructure match fit, making coastal communities a more attractive place to do business and boosting private investment.

The department has not held discussions with Scotfield Ltd about unsafe cladding at The Gateway Building in Leeds. The Government is providing £5.1 billion, including £4.5 billion from the Building Safety Fund, to address the fire safety risks caused by unsafe cladding on high-rise residential buildings.

The Gateway Building has applied to the Building Safety Fund and has been allocated £1.9 million upfront funding for pre-tender support to help get the remediation project out-to-tender. The overall expected cost of the remediation project at the Gateway Building to be funded by the Building Safety Fund is estimated at £16 million.

The English Housing Survey provides information on the number of private renting households who pay energy bills or council tax as part of their rent. In 2021, 162,000 households, or 3.7% of private renting households, pay their electricity bills as part of their rent; 131,000 households (3%) pay their gas bills as part of their rent; and 120,000 households (2.8%) have their council tax included as part of their rent.

Councils are expected to pay the council tax rebate to the occupants of an eligible property, not the landlord. Where a landlord of an eligible property usually pays the council tax as part of the rental agreement, the Government has asked councils to agree a payment method directly with the tenant.

Since 2010, there have been a range of policy changes affecting private landlords. These include tax changes for buy-to-let landlords, changes to the Stamp Duty Land Tax, tightening lending criteria on buy-to-let mortgages and the growing role of the build-to-rent sector.

The Private Rented Sector remains an important part of the housing market, with 4.4 million households currently in the Private Rented Sector. The proportion of PRS households has remained relatively stable for nearly a decade, as evidenced through the English Housing Survey. According to the English Private Landlord Survey (2021) over half (57%) of landlords had a buy-to-let mortgage, representing 68% of tenancies, indicating that buy-to-let landlords continue to invest.

This Government strongly encourages the efficient and effective use of land. Our National Planning Policy Framework (NPPF) already sets out that planning policies and decisions should promote an effective use of land and make as much use as possible of previously-developed land in meeting the need for homes and other uses, while safeguarding and improving the environment, and ensuring safe and healthy living conditions.

The NPPF sets out that local plans should establish density standards for city and town centres which seek a significant uplift in density in those areas. Furthermore the NPPF is clear that where there is a shortage of land for meeting housing needs, it is especially important that planning policies and decisions avoid homes being built at low densities and that developments make optimal use of the potential of each site.

We have introduced a number of measures to support increased density including new permitted development rights to allow more buildings to be extended upwards to create new homes, and to make it easier for existing buildings to be converted to residential use. This will further support residential densification while avoiding the need to build on other types of land.

We are also bringing forward further reforms to support density through the Levelling Up and Regeneration Bill, including a duty for local authorities to produce design codes to help shape the design of their area, giving greater certainty to communities and developers. In addition ‘Street Votes’ will incentivise communities to consider the potential for development and support a gentle increase in densities through well-designed and locally supported proposals.

Through our national design guidance we encourage public spaces, including play areas, to be designed in an accessible and inclusive way.

The Local Government Finance Settlement makes available £54.1 billion in 2022/23 for local government in England, an increase of up to £3.7 billion on 2021/22. The majority of this funding is un-ringfenced in recognition of local authorities being best placed to understand local priorities, such as local playgrounds.

I refer the Hon Member to the answer to Question UIN 30150 on 11 July 2022.

In July 2019, the Department published a consultation - ‘A New Deal for Renting’ , on the implications of removing assured shorthold tenancies, which included a question on student accommodation. 19,697 consultation responses in total were received from a range of individuals and organisations. Since then, the department has used consultation feedback and extensive stakeholder engagement to understand the impact of proposals in the forthcoming Renters Reform Bill, including on the availability and supply of student accommodation in the private rented sector. We will continue to consider the impact of our reforms as we move towards legislation and will publish a full impact assessment in due course.

The Government’s commitment to abolish section 21 evictions and move to periodic tenancies will mean tenants enjoy greater security and feel empowered to challenge poor practice and unreasonable rent rises. We want as many tenants as possible to benefit from these reforms, including students living in the private rented sector.

We expect most students will continue to move in-line with the academic year. However, the proposed reforms will support student households who have children or local roots to remain in their properties after studying if they wish to. It will also mean that students are not locked into contracts when their circumstances change or if property standards are poor.

We have listened to calls for a swifter and more certain pathway to 2025 and have already accelerated our work on a full technical specification for the Future Homes Standard, which is planned for Spring 2023. In the meantime, to provide greater certainty for all stakeholders, we have published a draft notional building specification for the Future Homes Standard. The specification is not final but provides a basis on which we are already beginning to engage with industry on the indicative technical detail of the Future Homes Standard.

A full impact assessment on the Future Homes Standard will be carried out ahead of implementation and published online. Government's intention is to publish a draft impact assessment alongside the consultation in 2023.

As part of the consultation, we will consider what transitional arrangements are appropriate. Transitional arrangements are important as they provide all developers with certainty about the standards they are building to, and assurance that they should not have to make material amendments to work which is already underway when new Regulations came into force.

We have listened to calls for a swifter and more certain pathway to 2025 and have already accelerated our work on a full technical specification for the Future Homes Standard, which is planned for Spring 2023. In the meantime, to provide greater certainty for all stakeholders, we have published a draft notional building specification for the Future Homes Standard. The specification is not final but provides a basis on which we are already beginning to engage with industry on the indicative technical detail of the Future Homes Standard.

A full impact assessment on the Future Homes Standard will be carried out ahead of implementation and published online. Government's intention is to publish a draft impact assessment alongside the consultation in 2023.

As part of the consultation, we will consider what transitional arrangements are appropriate. Transitional arrangements are important as they provide all developers with certainty about the standards they are building to, and assurance that they should not have to make material amendments to work which is already underway when new Regulations came into force.

We have listened to calls for a swifter and more certain pathway to 2025 and have already accelerated our work on a full technical specification for the Future Homes Standard, which is planned for Spring 2023. In the meantime, to provide greater certainty for all stakeholders, we have published a draft notional building specification for the Future Homes Standard. The specification is not final but provides a basis on which we are already beginning to engage with industry on the indicative technical detail of the Future Homes Standard.

A full impact assessment on the Future Homes Standard will be carried out ahead of implementation and published online. Government's intention is to publish a draft impact assessment alongside the consultation in 2023.

As part of the consultation, we will consider what transitional arrangements are appropriate. Transitional arrangements are important as they provide all developers with certainty about the standards they are building to, and assurance that they should not have to make material amendments to work which is already underway when new Regulations came into force.

On 17 March we announced our intention to bring forward a package of measures to put an end to a minority of unscrupulous supported housing landlords exploiting some of the most vulnerable in our society.  This includes the intention to introduce standards for support.

We are actively engaging with stakeholders to develop the detail of the measures and will introduce any measures requiring legislation when parliamentary time allows.

We have also announced that we will provide £20 million for a Supported Housing Improvement Programme to drive up quality in the sector in some of the worst affected areas. The funding call for the programme opened on 2 July.

On 17 March we announced our intention to bring forward a package of measures to put an end to a minority of unscrupulous supported housing landlords exploiting some of the most vulnerable in our society.  This includes the intention to introduce standards for support.

We are actively engaging with stakeholders to develop the detail of the measures and will introduce any measures requiring legislation when parliamentary time allows.

We have also announced that we will provide £20 million for a Supported Housing Improvement Programme to drive up quality in the sector in some of the worst affected areas. The funding call for the programme opened on 2 July.

The provision of the right infrastructure at the right time is very important to new and existing communities, including those in rural locations. Where infrastructure is required as a result of new development, local planning authorities can require contributions from developers towards that infrastructure. Contributions can be sought through Section 106 agreements and the Community Infrastructure Levy.

To create a more efficient, effective and transparent system, the Levelling Up and Regeneration Bill proposes a new Infrastructure Levy. This will be a mandatory, non-negotiable charge, set and collected locally, to largely replace the complex and discretionary Section 106 regime and CIL charge.

The Bill will require local authorities to prepare infrastructure delivery strategies. These will set out a strategy for delivering local infrastructure through spending Levy proceeds. They will create a more transparent process for local people on how funds will be spent and what infrastructure will be delivered to support development. It will be for local councils to decide which infrastructure projects they spend the proceeds on.

The Levy will be brought forward through regulations that will set out the detail of how it will operate. We intend to consult on this detail, prior to any publication of regulations.

The provision of the right infrastructure at the right time is very important to new and existing communities, including those in rural locations. Where infrastructure is required as a result of new development, local planning authorities can require contributions from developers towards that infrastructure. Contributions can be sought through Section 106 agreements and the Community Infrastructure Levy.

To create a more efficient, effective and transparent system, the Levelling Up and Regeneration Bill proposes a new Infrastructure Levy. This will be a mandatory, non-negotiable charge, set and collected locally, to largely replace the complex and discretionary Section 106 regime and CIL charge.

The Bill will require local authorities to prepare infrastructure delivery strategies. These will set out a strategy for delivering local infrastructure through spending Levy proceeds. They will create a more transparent process for local people on how funds will be spent and what infrastructure will be delivered to support development. It will be for local councils to decide which infrastructure projects they spend the proceeds on.

The Levy will be brought forward through regulations that will set out the detail of how it will operate. We intend to consult on this detail, prior to any publication of regulations.

In Birmingham (using the boundary of Upper Tier Local Authority) 26 buildings have been assessed as eligible for the Building Safety Fund. Of these, 19 buildings have received funding and 6 have started cladding remediation work.

In the West Midlands (using Local Fire Authority boundaries) 32 buildings have been assessed as eligible for the Building Safety Fund. Of these, 22 buildings have received funding and 6 have started cladding remediation work.

In the constituency of Edgbaston, the number of eligible applications to the Building Safety Fund is below the threshold at which we can publish data without the risk of identifying individual buildings.

The Government believes very strongly that service charges should be transparent and communicated effectively. The way a service charge is organised (for example, what it covers and how it is worked out) is set out in the lease or tenancy agreement. The law is clear that variable service charges must be reasonable and, where costs relate to work or services, the work or services must be of a reasonable standard. The Government believes that there should be a clear route to challenge or redress if things go wrong.

The Government’s policy statement on rents for social housing (published in February 2019) encourages registered providers of social housing to keep increases for services charges in line with inflation, within CPI+1% per annum, to help keep charges affordable. It also states that tenants should be supplied with clear information on how service charges are set, and in the case of social rent properties, providers are expected to identify service charges separately from the rent charge.

The Regulator of Social Housing’s Rent Standard says that registered providers must comply with all the requirements and expectations of the Government’s Rent Policy Statement on the setting, increase and decrease of rents and service charges.

In the British Energy Security Strategy, the Secretary of State for Energy committed to consult on community benefit options for the network infrastructure we need to meet net zero targets. This will ensure that communities that host network infrastructure are recognised for their vital role in ensuring a cheaper, cleaner and self-sufficient energy supply in Britain. Any new community benefit options will not replace community engagement with developments through the existing planning and consultation processes.

Local communities will continue to be able to have their say on Nationally Significant Infrastructure Projects (NSIPs) and the benefits they can deliver for their local area, including: environmental enhancements; job schemes; energy discounts; and investment in local infrastructure, such as faster broadband, electric vehicle charging points or energy efficiency measures. Applicants are required to set out in their Statement of Community Consultation how they propose to consult those living in the vicinity of the land. When deciding whether to accept an application for a Development Consent Order, the Planning Inspectorate (on behalf of the relevant Sectary of State) must have regard to this consultation report. Where applications are accepted for examination, members of local communities can also make written representations on the proposed infrastructure, often also providing oral evidence at hearings.

This Government is committed, through the Levelling Up and Regeneration Bill, to empower local authorities to reinvigorate their high streets and town centres.

High Street Rental Auctions will seek to increase cooperation between landlords and local authorities to make town centre tenancies more accessible and affordable for tenants, including SMEs and community groups.

Through the Register of Overseas Entities which is being developed by the Department for Business, Energy and Industrial Strategy, local authorities will be able to gather information on overseas landlords. If overseas landlords own UK property via an overseas entity in scope of the Register of Overseas Entities, they will be required to register details with Companies House, including about their beneficial owners.

We are in the process of recruitment and more details will be available in due course.

This Government recognises the role that EU Structural funding plays in supporting people and businesses up and down the UK. The UK Shared Prosperity Fund will continue this through empowering places to identify local priorities and deliver investment for their communities, where it is needed most.

There remains a long tail of investment from EU Structural Funds, tapering off in 2024/25 to be replaced solely by UKSPF.

Lead authorities have the freedom to invest across a range of interventions, which includes specific support for community and voluntary sector groups. This funding can be backdated to the 1st April 2022. Further detail can be found on GOV.UK.

I am delighted to have opened the application portal for the second round of the Levelling Up Fund on the 15 July.

We recognise that what constitutes priority investment will vary across local authorities and geographies, including in rural areas of the UK.

I am keen to see a diverse range of bids come forward so that this government can continue to invest in Levelling Up urban and rural communities across the UK.

When a new development is granted planning permission, local authorities can use section 106 planning obligations to secure a commitment from developers to provide and maintain communal spaces and facilities. It is up to developers and local planning authorities to agree appropriate funding arrangements for developments with common areas or shared services.

Planning obligations may only constitute a reason for granting planning permission for the development if the obligation is necessary to make the development acceptable in planning terms; directly related to the development; and fairly and reasonably related in scale and kind to the development.

Section 38 agreements facilitate the adoption of new roads built by developers to become highways maintained by the public purse. Whether a road is offered up for adoption is determined by the developer. Where a road is offered for adoption, the Highways Authority will assess whether the road has been constructed to the correct standard and will make a decision whether or not to adopt the road. This department does not hold data on unadopted roads.

In all cases, the Government believes that it should be clear to potential purchasers what the arrangements are for the maintenance of roads and upkeep of open space, public or otherwise. Where a road is not adopted by the local authority the responsibility for maintaining the road rests with third parties, which are usually the owners of properties that front onto it. Estate rent charges are one way that residents cover the unadopted road’s maintenance. However, it is not appropriate that these homeowners have limited rights to challenge these costs.

That is why the Government intends to legislate to give freeholders on private and mixed tenure estates equivalent rights to leaseholders to challenge the reasonableness of estate rent charges, as well as a right to apply to the First-tier Tribunal to appoint a new manager to manage the provision of services covered by estate charges.

When a new development is granted planning permission, local authorities can use section 106 planning obligations to secure a commitment from developers to provide and maintain communal spaces and facilities. It is up to developers and local planning authorities to agree appropriate funding arrangements for developments with common areas or shared services.

Planning obligations may only constitute a reason for granting planning permission for the development if the obligation is necessary to make the development acceptable in planning terms; directly related to the development; and fairly and reasonably related in scale and kind to the development.

Section 38 agreements facilitate the adoption of new roads built by developers to become highways maintained by the public purse. Whether a road is offered up for adoption is determined by the developer. Where a road is offered for adoption, the Highways Authority will assess whether the road has been constructed to the correct standard and will make a decision whether or not to adopt the road. This department does not hold data on unadopted roads.

In all cases, the Government believes that it should be clear to potential purchasers what the arrangements are for the maintenance of roads and upkeep of open space, public or otherwise. Where a road is not adopted by the local authority the responsibility for maintaining the road rests with third parties, which are usually the owners of properties that front onto it. Estate rent charges are one way that residents cover the unadopted road’s maintenance. However, it is not appropriate that these homeowners have limited rights to challenge these costs.

That is why the Government intends to legislate to give freeholders on private and mixed tenure estates equivalent rights to leaseholders to challenge the reasonableness of estate rent charges, as well as a right to apply to the First-tier Tribunal to appoint a new manager to manage the provision of services covered by estate charges.

When a new development is granted planning permission, local authorities can use section 106 planning obligations to secure a commitment from developers to provide and maintain communal spaces and facilities. It is up to developers and local planning authorities to agree appropriate funding arrangements for developments with common areas or shared services.

Planning obligations may only constitute a reason for granting planning permission for the development if the obligation is necessary to make the development acceptable in planning terms; directly related to the development; and fairly and reasonably related in scale and kind to the development.

Section 38 agreements facilitate the adoption of new roads built by developers to become highways maintained by the public purse. Whether a road is offered up for adoption is determined by the developer. Where a road is offered for adoption, the Highways Authority will assess whether the road has been constructed to the correct standard and will make a decision whether or not to adopt the road. This department does not hold data on unadopted roads.

In all cases, the Government believes that it should be clear to potential purchasers what the arrangements are for the maintenance of roads and upkeep of open space, public or otherwise. Where a road is not adopted by the local authority the responsibility for maintaining the road rests with third parties, which are usually the owners of properties that front onto it. Estate rent charges are one way that residents cover the unadopted road’s maintenance. However, it is not appropriate that these homeowners have limited rights to challenge these costs.

That is why the Government intends to legislate to give freeholders on private and mixed tenure estates equivalent rights to leaseholders to challenge the reasonableness of estate rent charges, as well as a right to apply to the First-tier Tribunal to appoint a new manager to manage the provision of services covered by estate charges.