CIL Index - 2026 Update
- Viable Placemaking
- Oct 28
- 2 min read
The Community Infrastructure Levy (CIL) is a complicated matter which impacts many planning applications and appeals.
The Building Cost Information Service (BCIS) on behalf of the Royal Institution of Chartered Surveyors (RICS), Ministry of Housing Communities and Local Government (MHCLG) (briefly the Department for Levelling Up, Housing and Communities), developed an annual index to ensure levy charges respond to market conditions - essentially, the index rate ensures the levy keeps up with modern costs.
Due to the way a CIL liability is calculated, as the Index figure rises, the CIL charge per square metre for development also rises.
The Index is an annual figure which is prepared and maintained by BCIS. In October 2025, the BCIS published the index figure for 2026, which is 400.
For context, Viable Placemaking have set out the CIL index figures for the last five years below:
Although this is only a 2.3% increase from 2025, it is over 20% since 2022. Clearly, the index rate has risen substantially in recent years and this has the potential to greatly impact the costs and viability of many schemes, for homeowners and developers alike.
CIL's impact on development viability has recently been considered by the Government who, as part of the "support for housebuilding in London" policy note - aimed to accelerate housebuilding in the capital - are conducting a consultation on temporary relief from CIL for qualifying schemes delivering 20% affordable housing. Although secondary legislation would be required after the consultation is this is going to come into force, it does highlight
Viable Placemaking have extensive experience navigating CIL and, as a town planning consultancy with a specialism in development economics, are acutely able to navigate the various CIL and planning strategies which can assist in addressing a liability.
For example, Viable Placemaking recently provided dual viability and CIL advice for a new residential development in Hackney. You can find our more about this project here.
If you have received a CIL Liability or Demand Notice with a charge you did not expect, the first thing to do is to seek professional advice as soon as possible as many CIL strategies are time-sensitive, so it is important to act fast and effectively.
As we say in our CIL service page, the first point to note is that if you’ve received a CIL notice that you do not start development, if you have not already done so, as this can reduce the number of strategies which could mitigate or reduce your CIL charge.
If you have any questions on how CIL might impact your development, please don't hesitate to get in touch.
