Infrastructure Levy – briefing for housing associations

On 11 May 2022, the government announced details of a new Infrastructure Levy as part of the Levelling Up and Regeneration Bill.

The Levy is the government’s proposed new way of calculating developer contributions towards affordable housing and infrastructure, and will look to replace current arrangements under Section 106 and the Community Infrastructure Levy. 

We await further details about the way that the policy will work in practice, and most of the proposals for the Infrastructure Levy will be enacted through regulations and guidance, so very little detail about the legislation is currently known.

We have, however, been clear in our conversations with the government that the delivery of on-site affordable housing must be protected under any proposed plans, and we will continue to make this case to the government at every opportunity while working to try and shape the proposals under the Levy.

Our briefing details the policies proposed under the new Levy, what these might mean for housing associations, and outlines our next steps.