Social Housing Relief

Social housing relief is a mandatory discount that applies to most social rent, affordable rent, intermediate rent provided by a local authority or Private Registered Provider, and shared ownership dwellings. Subject to meeting specific conditions, social housing relief can also apply to discounted rental properties provided by bodies which are neither a local authority nor a private registered provider. Regulation 49 (as amended by the 2011 Regulations) defines where social housing relief applies.

In essence, in order to qualify for relief, dwellings must be:

To qualify for social housing relief, the claimant must own a material interest (defined in Regulation 4(2)) in the relevant land (the area granted planning permission) and have assumed liability to pay the levy for the whole chargeable development.

How to Claim

Social housing relief is not applied automatically. Instead, a claim for relief must be submitted to the Council by the claimant. To claim for social housing relief, the claimant must have assumed liability to pay CIL and be an owner of the relevant land.

Claims must be submitted to the Council using the relevant form (link below), before commencement of the chargeable development. The claim must be accompanied with a map that clearly identifies the location of the dwellings to which social housing relief will apply. Accompanying information should also provide the gross internal area of the social housing dwellings, and a calculation of the amount of social housing relief being claimed for.

Where insufficient information is provided, the Council can issue an Information Notice. This is a formal request for full information to be returned. There may be consequences if you then fail to comply with the Information Notice.

The CIL Regulations (2011) set out the full procedures for claiming social housing relief.

Important note

It is important that you don't begin work until you submit your application for relief and you receive notice from us with a decision. If you start any work, including digging foundations, your application for relief will be refused.

If, after having being granted relief, we receive a withdrawal of assumption of liability or a transfer of assumed liability form, before the development is commenced, then your relief will be withdrawn. However, the new person/group to assume liability can apply for relief.

If you fail to submit a Commencement Notice before starting any work, then we will charge the full amount for CIL.

If you receive relief, and then a disqualifying event occurs within seven years of commencement, we will charge you CIL. Disqualifying events are explained below. CIL is registered as a land charge and so if any of the disqualifying events occur, we can revoke relief and the levy will then be due.

We can also impose surcharges, in addition to the full CIL charge.

If the development is sold then the Council must be notified.

Disqualifying events

To qualify for social housing relief, a claimant must provide evidence that their development qualifies for the relief. In some cases, a disqualifying event may occur whereby the conditions for granting relief no longer apply and so any relief that was granted on the chargeable development can be "clawed back". There is a seven year clawback period on social housing relief, effective from the date the development is commenced. These events include:

Where a disqualifying event occurs after commencement, the claimant must notify us within 14 days of the event. Failure to do so will result in a surcharge, in addition to the full CIL amount. Notification must include the area of the floorspace and a map showing its location in the chargeable development.

If a disqualifying event occurs before commencement, the relief is cancelled and the full charge is due.

Whether before or after commencement, where a disqualifying event occurs, a revised Liability Notice must be issued showing what is payable, and a Demand Notice must be served to collect the CIL amount due.

Should a disqualifying event occur, it is the responsibility of the person/s who received the relief to pay the CIL amount. The current occupants of a dwelling should therefore never pay the clawback. Instead, the liability falls on the person who owned the land immediately prior to the dwelling being made available for occupation.

Appeal

You have the right to appeal against a grant of relief. Appeals should be made to the Valuation Office Agency. Further information can be found through the Appeals (101 kb pdf) guidance.