16 August 2016
Last updated at 10:21
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The Housing and Planning Act 2016 - Fighting for your Right to Light
We asked Legal Indemnity Insurer CLS to explain the impact of some of the changes brought about through the Housing and Planning Act 2016.
On Thursday 12th May, the Housing and Planning Act 2016 (The Act) received Royal Assent. The Act confirmed that the Government is seeing “housing as one of the top issues to address to secure the future of the country” with announcements of New Starter Homes, Right to Buy (RTB) deals, and ‘Pay as you save’ policies being introduced by 2020.
The Act brings together vital objectives of increasing the output of newbuilds, and improving the affordability of home ownership for first time buyers. Other areas include the creation of ‘Starter Homes’ with a proposed 20% discount off market value (subject to value caps) and provisions requiring councils to consider the sale of vacant council housing.
Although The Act has completed its passage through parliament, it does not mean that all of the measures will come in to play immediately, however, the foundations have been built and it’s a case of waiting for more information to emerge.
Another change to The Act, which came into effect on Wednesday 13th July 2016 at an earlier date than most expected, was the abolishment of section 237 of the Town and Country Planning Act 1990 which gave local authorities the power to override easements like rights to light and other title constraints removing the risk of injunctions whilst also acting as a helping hand for developments to go forward. Most developers have relied on these powers to build on land and have particularly found the process helpful to combat rights to light issues.
The new provisions to replace section 237 now come under section 203 of the Housing and Planning Act 2016. Although s.203 appears to adopt similar procedures, there is one important difference - a new requirement that the relevant local planning authority “could acquire the land compulsorily” for the purpose of the development in question. There seems to be different interpretations flying around so it is possible that the government will seek to publish further guidance in due course.
With several high profile cases receiving publicity over the years, there has been an increased awareness of rights to lights claims, leading to both developers and property owners seeking to understand their rights and obligations. Therefore, it is crucial that developers protect their interest by taking out right to light, override easements and restrictive covenants insurance. This will mitigate risks, reducing potentially costly threats whilst providing peace of mind to continue with development projects free from uncertainty.
For more information on insurance products and services from PSG Financial Services Limited:
Email: customerservices@psgfs.co.uk
Visit: www.psgconnect.co.uk or Telephone: 01226 246 644
PSG Financial Services Limited is authorised and regulated by the Financial Conduct Authority.
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