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Self Builder, Self Manager, Self Procurer

Self Builder, Self Manager, Self Procurer
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15 April 2013 the Housing Minister, Mark Prisk, announced that the Government proposes to exempt self builders from paying the Community Infrastructure Levy (CIL). There will be a 6-8 week consultation on the changes which will likely come into effect during the summer.

CIL, which was introduced under the Labour Government but began to be implemented by some councils in January 2012 (and now affects thousands of self builders in dozens of local authorities), raised a levy on new homes set at a standard charge per m² of new development. On average, self builders and developers affected by CIL were being asked to pay £100-150/m² – typically adding 10-15% onto build costs. In some areas the charge was significantly higher, and in many cases self builders were being faced with invoices for £20-40,000 as a condition of being granted planning approval.

Details of the criteria for the exemption have not yet been finalised, but it is expected to involve self builders declaring that their project is non-speculative before commencement, and have to provide evidence as the project completes (e.g. by having the completion certificate and title in their name) as well as a set period of occupation, proved by Council Tax payments. The changes will only apply to Local Authorities in England.

Homebuilding & Renovating first began to highlight the issue in late 2011 and since then has been vigorously campaigning with the National Self Build Association (NaSBA) for self builders to be excluded from the charge. Homebuilding & Renovating Editor Jason Orme lobbied the then Housing Minister Grant Shapps on the issue at a meeting in Downing St. in April 2012, and much behind-the-scenes work has been going on to ease the burden for people building their own homes.

CIL was originally designed to replace the complicated (and fully negotiable) raft of local planning obligations such as Section 106s and Affordable Housing Contributions, which will still affect self builders.

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