The debate about “Allowable Solutions” took a step forward yesterday as the Department for Communities and Local Government released its Consultation setting out its current thinking on the subject.

In simple terms, “Allowable Solutions” is best described as a catch-all term encompassing a range of carbon abatements that should be invested in once options for cost-effective on-site efficiencies and low carbon / renewables have been exhausted. It was introduced in recognition of the technical and financial constraints that might prevent the achievement of “zero carbon” development within the physical limitations of the development.

This all may sound rather academic and intangible; however, it is of significance to developers because applied in its crudest potential incarnation it will operate as – yet another – developer tax with costs suggested in the range of £800 to £3,000 per residential unit.

Viewed at face value, it would be understandable why many might object to policies which appear to discourage development. However, this would be to ignore how an astutely applied investment could be used to enhance development value – perhaps benefitting parties that might otherwise seek to obstruct or restrict proposals.

Much of the Consultation concerns how and where the money should be spent. But whatever the outcome, any increase in development cost will need consideration as part of the viability appraisal. And potentially an unintended consequence of the drive towards zero carbon might be the sacrificing of other developer contributions.

For further advice on "Allowable Solutions" or any other matter relating to sustainability in the built environment, contact our Sustainable Development team.