A proposed initiative aimed at encouraging more residential use of city centre properties could go out to public consultation in the near future.

Newport City Council is already taking steps to boost the regeneration, vibrancy and attractiveness of the city centre as part of a £250m investment by public, private and third sectors.

It has long been recognised that a mix of uses will help secure the future of the city centre and this includes encouraging more residential development.

One way this is being done is through the vibrant and viable places programme, funded by the Welsh Government, with schemes to convert landmark buildings into apartments.

Councillor John Richards, cabinet member for regeneration and development, is now considering another measure which could potentially stimulate further interest in turning city centre buildings into homes.

At the moment, developers seeking to create more than five new dwellings are asked to make a contribution towards such things as schools and play facilities. This is known as a section 106 (S106) agreement.

It is being proposed to introduce a time-limited S106 moratorium which will mean that the council will not request contributions for city centre residential schemes. However, this will have some important caveats:

• There will be a requirement for a contribution on developments larger than 30 units (where schemes are being done in stages, this condition will apply to the whole project).

• It will only apply to conversions of existing properties, not new-build.

• Agreements must be signed by July 31 2016 and the development must be completed within three years.

Within the primary retail area, such developments would be allowed on the upper floors but ground floor conversions could be permitted outside this defined boundary.

As part of the moratorium, developments under 30 units will also not need to include a quota of affordable housing as it is felt such a requirement could have an adverse impact on the viability of smaller conversions.

The regeneration benefits of such developments are considered to outweigh any potential loss of contributions, particularly as the impact on schools and play contributions is likely to be minimal. However, the policy would be reviewed annually to ensure that it was achieving the intended outcome.

A report detailing the proposal is being circulated to all members for comments before Councillor Richards decides whether it should go out to public consultation.