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Planning Gain Supplement Hits Affordable Housing in Rural Areas, says CLA

A new tax being proposed by the Treasury will strangle enterprise and further constrain the provision of affordable housing in the countryside, says the Country Land and Business Association.

rural housing

Wales Director Julian Salmon who is based in Presteigne is concerned that rural Wales, its economy, communities, and environment, will be disproportionately hit by the introduction of Planning Gain Supplement.

“The provision of affordable rural housing, small scale diversification projects and those wanting to change the use of agricultural land could be seriously hindered by the introduction of the Planning Gain Supplement (PGS). The CLA is fundamentally opposed to this proposed tax,” said Mr. Salmon.

“Under current proposals, those wanting to convert barns to new uses which are to be let or to change the use of land from an agricultural field to equine use, would be expected to pay a tax. Those hardest hit would be small scale developments such as those converting farm buildings for small diversification projects.

“The best security for rural areas is a successful and sustainable rural economy allied with a flexible and integrated planning system with policies that all pull in the same direction.

" Whilst the Welsh Assembly Government encourages agriculture to diversify, this proposed policy from the Treasury will hinder it. We cannot afford to have two opposing messages coming from Government. PGS is a costly and complex tax that will hinder rural enterprise and development.”

TAN 6 which deals with rural diversification and affordable rural housing in light of the decline in the agricultural sector is currently under review.

The response deadline to the “Making Changes to Planning Obligations – a PGS consultation” issued by the Department for Communities and Local Government was 28 February 2007.

The full CLA response is available at the Planning and Housing section on the CLA website

link Farmland price growth trebles to record levels
link Farmland prices soar to highest levels
link RICS UK housing market survey, June 2006

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