Overage: Keep ahead of the curve
Published 7 January 2016
The third (and final) reading of the Housing and Planning Bill is imminently due in the House of Commons. The Bill looks to broaden the scope of Affordable Housing to include so called 'starter homes' to be sold at a market discount.
House builders would be advised to keep an eye on the progress of the Bill and consider the potential impact of the new legislation with regard to future overage negotiations. It is common that an overage agreement excludes Affordable Housing from the clawback assessment. If the legislation is passed will your contractual definition accurately capture your intention following the change of law?
If you think that your precedents may require review or you would like to find out more about this issue, please contact us.