Community Infrastructure Levy

Yesterday saw an important step on the road to the UK catching up with Europe in terms of the number of self builds undertaken with the announcement from Mark Prisk (housing minister) that the government proposes to exempt self builders from paying CIL. There will be a 6-8 week consultation on the charges which will likely come into effect later this year.

The Community Infrastructure Levy was introduced in 2010 and implemented by some councils in January 2012 which meant that self builders had to pay a levy to the community where the development takes place thus adding 10% to 15% onto build costs treating them the same as speculative builders. Faced with huge invoices once planning was passed it could only deter self builders from taking on a project of this nature.

The application for relief would involve a two-stage process. The application for the self build relief would need to be made by the person who applied for planning permission and would then be required to self- certify that the development proposed is a self-build project within the definitions in the regulations and that the person benefiting from the relief would occupy the self- built residential building as their principal home for at least seven years from the date of completion of the property.

Housing Minister Mark Prisk said:

“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 £44million 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 their own home will have the information and help they could need at their fingertips.”

There are still issues here with the seven year occupancy rule amongst them however well done to everyone involved in lobbying the government.

If you plan to build your own home contact us at http://www.selfbuildonline.co.uk/

Photo courtesy of Stock.XCHNG

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