Vacant Building Credit Technical Advice Note

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This Technical Advice Note explains how the Council will implement the provisions of national policy and guidance on Vacant Building Credit in the Peterborough Local Planning Authority Area.

Introduction Vacant Building Credit (VBC) was first introduced by the Government 2014, as an incentive to bring back into use previously developed sites containing vacant buildings. It allows for a financial credit, equivalent to the existing gross floorspace of a vacant building on brownfield land brought back into any lawful use or demolished for redevelopment, to be deducted from the calculation of any affordable housing contributions sought from relevant development schemes.

Vacant Building Credit National Policy

The Vacant Building Credit now forms part of the National Planning Policy Framework (NPPF). Paragraph 4 of Policy H08 of the NPPF (2026) states:

Where development proposals include the reuse or redevelopment of vacant buildings, any affordable housing contributions which are due should be reduced by a proportionate amount, equivalent to the gross floorspace of the existing building or buildings. This does not apply to vacant buildings which have been abandoned, or to major development on land within or released from the Green Belt (to which the requirements in policy GB8 apply).

Implementing VBC National Policy in Peterborough

The Peterborough Local Planning Authority Area does not include any land designated as Green Belt, however, as the intention of policy is to incentivise brownfield development, Vacant Building Credit will only apply to developments on previously developed land, as defined by Annex 2 of the NPPF (2026).

Previously Developed Land: Land which has been lawfully developed and is or was occupied by a permanent structure and any fixed surface infrastructure associated with it, including the curtilage of the developed land (although it should not be assumed that the whole of the curtilage should be developed). It also includes land comprising large areas of fixed surface infrastructure such as large areas of hardstanding which have been lawfully developed.

Previously developed land excludes: land that is or was last occupied by agricultural or forestry buildings; land that has been developed but where provision for restoration has been made through development management procedures (including development related to minerals extraction, waste disposal by landfill and renewable and low carbon energy development, where provision for restoration exists); land in built-up areas such as residential gardens, parks, recreation grounds and allotments; and land that was previously developed but where the remains of the permanent structure or fixed surface structure have blended into the landscape.

Peterborough’s adopted Local Plan sets out that Development proposals of 15 or more dwellings (whether as new-build or conversion) should provide 30% affordable housing.

This threshold will therefore apply when calculating any remaining affordable housing contribution due once the VBC deduction has been applied to eligible vacant buildings that are being reused or redeveloped in Peterborough.

The Vacant Building Credit Planning Practice Guidance

The Planning Practice Guidance (PPG) to support national policy sets out the considerations for determining whether a vacant building credit is applicable to a building. Regarding determining whether a property has been abandoned, paragraph 28 states:

The courts have held that, in deciding whether a use has been abandoned, account should be taken of all relevant circumstances, such as:

• the condition of the property
• the period of non-use
• whether there is an intervening use;
• and any evidence regarding the owner’s intention

It goes on to say that:

The policy is intended to incentivise brownfield development, including the reuse or redevelopment of empty and redundant buildings. In considering how the vacant building credit should apply to a particular development, local planning authorities should have regard to the intention of national policy. In doing so, it may be appropriate for authorities to consider:

• whether the building has been made vacant for the sole purposes of re-development
• whether the building is covered by an extant or recently expired planning permission for the same or substantially the same development

Applying VBC Planning Practice Guidance in Peterborough

To determine what counts as a Vacant Building, the definitions of ‘building’ and ‘in-use building’ as set out at Part 5, 40 (11) of the Community Infrastructure Levy Regulation as amended by the Community Infrastructure Levy (Amendment) Regulations 2014 will be applied. This regulation states that a ‘building’ does not include buildings:

• into which people do not normally go,
• into which people go only intermittently for the purpose of maintaining or inspecting machinery, or
• for which planning permission was granted for a limited period.

The regulation also states that an in-use building is one which has been in lawful use for a continuous period of at least six months within the three years ending on the day planning permission first permits the chargeable development. Therefore, as Vacant Building Credit only applies to buildings that are not in-use i.e. vacant, the implication of this regulatory framework is that a vacant building is one which has not been in lawful use for a continuous period of at least six months within the three years ending on the day planning permission first permits the chargeable development.

To ensure that the Vacant Building Credit does not incentivise unsustainable development, such as the forced eviction of businesses or the neglect of viable commercial businesses for the sole purpose of redevelopment and in order to claim a Vacant Building Credit, the applicant may be required to demonstrate that the building has been actively marketed at a realistic price for a reasonable period of at least 12 months and that there is no demand for the building in its current state for the use for which it has permission. This applies to buildings which have become vacant within the three-year period before the application is made.

In order to apply for Vacant Building Credit, a vacant building credit statement must be submitted alongside a planning application. The following information will need to be included in the statement:

Evidence that any referenced building is a ‘vacant building’. A building is not considered as ‘vacant’ if the building has been in continuous use for any six-month period during the last three years up to the date of the planning application is submitted.

Evidence that any referenced building is not an ‘abandoned building’ or vacated solely for the purpose of redevelopment. The onus will be on the applicant to demonstrate this. The factors the Council will take into account include:

i) the physical condition of the building;

ii) the length of time that the building had not been used;

iii) previous use of the building and whether it had been used for any other purposes; and

iv) the owner’s intentions.

Information on the existing Gross Internal Area (GIA) and the proposed GIA. GIA is the area of a building measured to the internal face of the perimeter walls at each floor level. For the purposes of assessing floorspace, the Council will use the GIA definition used by the RICS in its Code of measuring practice.

The Vacant Building Credit will not be applied to buildings which are covered by an extant or recently expired planning permission for the same or substantially the same development.

Calculation of the Vacant Building Credit

Paragraph 27 of the PPG explains the process for calculating the Vacant Building Credit: Where there is an overall increase in floorspace in the proposed development, the local planning authority should calculate the amount of affordable housing contributions required from the development as set out in their Local Plan. A ‘credit’ should then be applied which is the equivalent of the gross floorspace of any relevant vacant buildings being brought back into use or demolished as part of the scheme and deducted from the overall affordable housing contribution calculation. This will apply in calculating either the number of affordable housing units to be provided within the development or where an equivalent financial contribution is being provided. The existing floorspace of a vacant building should be credited against the floorspace of the new development. For example, where a building with a gross floorspace of 8,000 square metre building is demolished as part of a proposed development with a gross floorspace of 10,000 square metres, any affordable housing contribution should be a fifth of what would normally be sought.

Example of Vacant Building Credit calculation

Applying for Vacant Building Credit in Peterborough

Where vacant buildings are demolished for redevelopment, only those vacant buildings which enable and relate directly to the redevelopment will be included in the assessment of any Vacant Building Credit.

As is commonly the case with outline planning applications it may not be clear what the actual number of dwellings, or the size of those dwellings, may be. Therefore, it will be difficult to quantify what Vacant Building Credit will be applicable. Where the Local Planning Authority agrees that the Vacant Building Credit may be applicable, the applicant will enter into a S.106 Agreement at the outline stage to enable the matter to be deferred to a later stage when the relevant details of the scheme have been finalised. If the Vacant Building Credit is applicable to the proposed site, the information on floorspace will inform the level of affordable housing contributions. The amount of Vacant Building Credit to be set against the affordable housing contribution on Full and Reserved Matters applications will be assessed according to the example of Vacant Building Credit calculation provided above.