Changes to Community Infrastructure Levy could save Self-Builders thousands

Proposed changes now under public review in a consultation announced on 15^th April could save self-builders thousands of pounds by ensuring they are exempt from paying a levy charge that must currently be paid for all new buildings over a certain size.

The government has declared themselves committed to helping more people achieve their aspirations of owning a home – echoing the ‘property owning democracy’ sentiments of the Thatcher era – and wants to help boost housing supply by making self-build housing a mainstream option.

The proposed relief concerns the Community Infrastructure Levy which, introduced in 2010, is a charge local councils can enforce on developers in their area to help pay for the cost of introducing appropriate new infrastructure. The relief would cover homes built or commissioned by individuals, families or groups of individuals for their own use and that will be owner-occupied.

Planning Minister Nick Boles commented:

“For too long, self-build homes have been seen as an option for only a privileged few and we are determined to change that with proposals that have the potential to save self-builders thousands of pounds.

“Our proposals would ensure that self-build homes are exempt from this levy and will make an enormous difference to people looking to realise their dream of buying a plot of land and getting a builder to build them a home.

“We urgently need to build more homes and the proposed changes to the levy will help increase housing supply and help those businesses keen to grow.”

Housing Minister Mark Prisk added:

“I am determined that anyone who wants to build their own home should have the opportunity to do so.

“That’s why on top of the £44 million funding we’re making available to help aspiring self-builders and local community groups to get their projects off the ground, today’s proposals will ensure these small and bespoke projects do not incur large infrastructure bills through the levy.

“This package of support, combined with the advice available from leading self-build organisations, will ensure those looking to build will have the information and help they could need at their fingertips.”

Along with helping people build their own home, other proposed changes to improve the levy system will also aim to benefit councils and developers.

The consultation (available at this link) proposes changes that, the Government hopes, will boost development and the building of new homes and businesses. The changes should make the levy fairer, faster, more certain and more transparent.

Other proposals, in addition to the move to exempt self-build homes, include, amongst others:

• changes aiming to ensure councils provide greater clarity on how they have set the proposed level of levy and more transparency about what developers will be charged
• changes to allow councils to accept levy payments in kind from developers providing infrastructure instead of cash or land to ensure timely delivery of infrastructure
• ensuring that where planning permission is phased, levy payments are also phased to help get development underway as soon as possible
• enabling councils to make discount market sale housing exempt from levy charges
• removing the current vacancy test meaning the levy will not generally be payable on buildings that have been vacant for a certain amount of time but are being refurbished or redeveloped to bring them back into productive use – the levy would still be payable on abandoned buildings or vacant buildings being redeveloped with an increase in floorspace
• allowing councils that have not adopted the levy to continue to pool contributions from different planning obligations for an extra year – this will now give councils who have not started the process of adopting the levy until April 2015 to take on board any regulatory changes that arise from this consultation

You can have your say by following this link and participating in the consultation process.

If you are interested in carrying out a self-build project, the Government’s own ‘Self-build portal’ website has information and advice on all aspects of such an undertaking from funding to technical downloads.

17/04/2013                                                                                                                     SRJ/LCB

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