When buying a new build home, it’s important to understand the financial obligations that house builders have to local councils. Two of the most significant payments are section 106 and community infrastructure levy (CIL) payments. In this blog post, we’ll explore what these payments are and how Kendrick Homes have recently paid a total of around £2.2 million pounds to these schemes in 2021.
What are section 106 payments?
Section 106 payments are contributions made by house builders to local councils to support the provision of infrastructure and services in the area surrounding a new development. These payments are designed to mitigate the impact that the development may have on the local community. Section 106 agreements are typically negotiated between the developer and the council before planning permission is granted.
Section 106 payments can be used to fund a wide range of local infrastructure and services, such as affordable housing, schools, transport improvements, and public spaces. The specific details of the payments will depend on the requirements of the local council and the nature of the development.
What is the community infrastructure levy (CIL)?
The community infrastructure levy (CIL) is a charge that is imposed on new developments to fund infrastructure improvements in the local area. Unlike section 106 payments, CIL is a standard charge that is set by the local council and is calculated based on the size and type of the development.
CIL payments are typically used to fund infrastructure projects such as roads, schools, and healthcare facilities that are required to support the increased population resulting from the new development.
Kendrick Homes’ payments to section 106 and CIL
Kendrick Homes is a well-known house builder with a reputation for building high-quality homes in desirable locations. In 2022, Kendrick Homes made significant payments to both section 106 and CIL.
These payments demonstrate Kendrick Homes’ commitment to supporting the local communities where they build new homes.
When buying a new build home, it’s important to understand the financial obligations that house builders have to local councils. Section 106 payments and CIL payments are two of the most significant financial obligations that house builders face. These payments are used to fund infrastructure and services in the local area and mitigate the impact of new developments on the surrounding community.
Kendrick Homes is a house builder that takes its responsibilities to the local community seriously. In 2022, Kendrick Homes paid a total of around £2.2 million pounds to section 106 and CIL schemes. This payment demonstrates Kendrick Homes’ commitment to supporting the local communities where they build new homes.
If you’re considering buying a new build home, it’s important to research the financial obligations that the house builder has to the local council. Understanding these payments can help you make an informed decision and ensure that you’re fully aware of the financial commitments that come with buying a new home.