Strong lobbying by the National Housing Federation was seen to have been of great importance yesterday, as the government agreed that affordable housing should benefit from social housing relief. This is effectively a full exemption from the Community Infrastructure Levy (CIL) on most social housing units.

The levy was due to be adopted by local authorities later this year. Indeed, it is reported in politics.co.uk that the National Housing Federation and Chartered Institute of Housing and Shelter's lobbying will potentially save housing associations millions of pounds, allowing them to build more much-needed affordable homes, providing essential housing association jobs as well as providing for those in need.

New Parliament regulations to enforce CIL will render social housing, such as socially rented and shared ownership homes exempt from the levy.

Prior to lobbying, ex Planning Minister Baroness Andrews, in 2008 announced that affordable housing would pay a reduced rate of the levy. Nevertheless, more recently, the government stated that it was unsure if affordable housing schemes should receive any relief from the CIL.

The National Housing Federation were pleased with the result of their hard fought battle to render social housing exempt from the levy, with chief executive, David Orr stating:

“The National Housing Federation is delighted the government is introducing social housing relief for the new Community Infrastructure Levy. We are grateful John Healey and his CLG officials have listened to our concerns and recognised the need to protect the capacity of housing associations to deliver desperately needed homes during the economic downturn.''

“With housing building this year slumping to the lowest level since 1923 and a record 4.5 million people stuck on housing waiting lists, this is good news not just for housing associations but for people waiting for a social home.”