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Supplementary Guidance - Developer Contributions & Affordable Housing

This page gives information on the Developer Contributions and Affordable Housing Supplementary Guidance which includes the legal and policy background and details the contribution and affordable housing requirements from new developments.

Purpose & scope of guidance

The icon Developer Contributions and Affordable Housing Supplementary Guidance (2020) [758Kb] is linked to Policy 5: Infrastructure Contributions and Policy 20: Affordable Housing in the Perth and Kinross Local Development Plan 2 (2019). It includes the legal and policy background and details the contribution requirements towards Primary Education, Auchterarder A9 Junction Improvements and Transport Infrastructure. The Guidance also details the Council's Affordable Housing requirement.

In line with Planning Circular 3/2012 Planning Obligations and Good Neighbour Agreements Local Authorities may use agreements under Section 75 of the Town & Country Planning (Scotland) Act 1997 to mitigate the impact of new development on infrastructure. Where a shortfall in infrastructure capacity has been identified the impact of new development may be mitigated through a financial contribution. This allows proposed development to be acceptable in planning terms and helps provide wider benefits across Perth and Kinross.

The Guidance was approved by the Council's Strategic Policy and Resources Committee on the 29 January 2020. Following the necessary adoption procedures, the Supplementary Guidance has now been formally adopted by the Council.

Do I need to pay developer contributions?

The Supplementary Guidance contains information on when an applicant may be required to make contributions towards infrastructure needs. Advice on Developer Contributions and Affordable Housing can also be provided as part of the Development Management Pre-application advice service.

The Supplementary Guidance aims to provide ample advice to assist applicants prepare their proposals to Perth and Kinross Council. Applicants are expected to take the requirement for Developer Contributions and Affordable Housing into account in their financial appraisal prior to land deals and commercial decisions being taken and early engagement with the Council is encouraged.

Primary Education contributions will be sought for schools listed in the Supplementary Guidance Appendix 1. Transport contributions will be sought within the zones shown in the Supplementary Guidance Appendix 2 and 3.

The Supplementary Guidance offers advice on most types of development proposals. There will be cases where certain proposals are not required to make contributions. Similarly, there may also be cases where the level of development will trigger a requirement to make contributions. Although not exhaustive, the below table provides a basic indication of what types of development may be required to make contributions:

 Residential Development (up to five homes)Residential Development (five or more homes)Residential Development (affordable homes)New Non-residential development (retail, office, leisure)Extension of existing Non-residential DevelopmentHoliday AccommodationHouseholder Development (extensions, alterations)
Primary EducationXX     
A9 Junction or Transport InfrastructureXXXXXX 
Affordable Housing X     

Certain proposals may also be required to make other site-specific contributions toward infrastructure not covered in this guidance, such as; strategic transport network improvements, open space and play areas, etc. These are assessed on a case-by-case basis by the relevant consultees.

The Council will consider the financial viability of an applicant's proposal if Developer Contributions are expressed as a potential concern. Sufficient evidence will be required in order to consider this. Further guidance on development viability can be found in section 3.15 of the Supplementary Guidance. Consideration of Development Viability Statements will be the exception rather than the rule. As noted, early engagement with the Council is advised via Pre-application advice service.

Affordable Housing

The Local Development Plan, in line with Scottish Planning Policy, requires 25% of all homes in development proposals of five homes or more to be affordable. Policy 20: Affordable Housing sets out the policy requirements for such proposals.

Further detail on the Council's requirements for Affordable Housing are set out in more detail within section 7 of the Supplementary Guidance, including different types of affordable housing and their descriptions, as well as the Commuted Sums rates for each Housing Market Area in lieu of on-site provision. There is also guidance on the Council's Affordable Housing Credits system for developers.

Pre-application advice is a service available through the Council's Development Management team. Applicants can also contact the Affordable Housing Enablers for further advice: TESDevelopmentContributions@pkc.gov.uk

More information on the Perth and Kinross Council Local Housing Strategy and associated documents is available on the Local Housing Strategy website.

Paying developer contributions

The icon How to pay your developer contributions procedure note (2020) [140Kb] provides advice on how you can pay your contributions, which can be done via online banking or telephone payment (BACS).

Payment prior to the release of planning consent is the preferred procedure. However, where appropriate, the Council may enter into a legal agreement to overcome obstacles to the grant of planning permission. This process will add time and cost to the release of planning consent.

Work to develop a database detailing all Section 75 planning obligations which the Council has concluded is ongoing. To support public awareness of planning obligations a icon S75 planning obligations register (2013-14) [110Kb] has been completed since 2014.

What contributions have been collected?

An annual report has been prepared giving information on the contributions towards Transport Infrastructure, Primary Education and the A9 Junction improvements which have been received by the Council. It also gives details of what these sums have been spent on. The report and all registers for Transport Infrastructure, Primary Education and the A9 Junction Improvement contributions are available to download below:

    Strategic Environmental Assessment (SEA)

    As part of the process we consult SNH, SEPA and Historic Environment Scotland on whether the plan, programme or strategy is likely to raise issues of significant environmental impact.

    We sent our icon Screening Report [165Kb] to the consultation authorities to determine whether the supplementary guidance is likely to have significant effects on the environment on the 28th November 2018.  You can also view the responses from the consultation authorities:

    Having consulted the three consultation authorities and having considered the criteria set out in the Act, the Council considered that the Supplementary Guidance is unlikely to have significant environmental effects and has therefore decided that SEA is not required. You can also view the icon Screening Determination [120Kb].