Construction charges will destroy sector, warns architect
A Shropshire architect has warned of "disaster" for the local property market if stealth housing taxes remain on the table.
Vic Johnson, managing director of architectural practice Johnson Design, said he believed Shropshire County Council's insistence on imposing section 106 and Community Infrastructure Levy (CIL) charges has the potential to 'kill' construction projects currently going through the planning stages.
The two measures, which are not widely imposed by local authorities in the UK, could increase development debt from £200 to nearly £18,760, Johnson said.
"If a developer is looking to build four small houses it would be forced to pay a Section 106 cost of £38,000 and a further community infrastructure levy of £13,000," he added.
"That’s £51,000 and does not including all construction costs, finance on land, interest payments, utilities payments and cost of selling.
"The fear is architects will not design, builders will not build, apprentices will never learn or be employed and young couples will never move in. Ultimately, planners will also stop planning."
Johnson Design, which is celebrating its tenth birthday this year, works across several residential construction schemes in Shropshire.
