Land use credit
The London Plan, Published by the Mayor of London in March 2016, suggests that: ‘Typically, a land use ‘credit’ is where new off-site residential provision is provided in advance by a developer on the basis that it could be used to satisfy the residential requirements of mixed use policies generated by future commercial development. Typically, an affordable housing credit is where new affordable housing is created when it is not a policy requirement. This affordable housing credit could potentially then be drawn down either for the purposes of affordable housing policy requirement and/or for the purposes of mixed use policy requirements for residential floorspace. Typically, a land use swap is where a developer provides an off-site residential development to satisfy the housing requirement generated by a specified office/commercial development. The planning applications for the two sites are considered at the same time by the planning authority and are linked by S.106 agreement or planning condition. The concept of credits and swaps may be applied more widely to other land uses, for example, in circumstances in outer London where a developer proposes residential development and agrees to satisfy office policy requirements for the area by making alternative office provision elsewhere in a location which is more viable for offices, possibly in the form of a ‘credit’.’
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