CIL - Relief for Self-Build Extensions (including household extensions) - Public forum - Planning Advisory Service (PAS)

Hi,

I saw this press release on the gov.uk website from 25th August 2013:

https://www.gov.uk/government/news/new-council-tax-cut-for-families-staying-together

which is mostly about council tax relief but includes a line saying: "

"The government is also confirming that it intends to remove the community infrastructure levy on self-build properties, including all extensions, family annexes and home improvements. Ministers also intend to seek to remove Section 106 housing levies on such annexes and extensions – a ‘stealth tax’ slowly being introduced by town halls."

I contacted the dclg press office last week to find out if there was any formal ministerial announcement to this effect, and this is the response that I got:

"We are currently awaiting clearance from across government for the package of measures we wish to implement, following the consultation earlier this year. We hope to be able to make an announcement about the direction of travel very shortly. Any regulatory amendments necessary in order to implement an exemption for self builders would still need to be approved by Parliament, which could take place later this year."

So, we won't know the full picture until the Government formally responds to the April 2013 CIL reforms consultation.

My personal view is it would be clearer and more transparent if announcements were made with the evidence and policy support, rather than titbits going into press releases over several months.

The proposals to exclude self- build are a direct response to whinging from parts of the development industry.  But remember CIL amounts to a very limited cost compared with the development itself, a sensible contingency would be far higher, so CIL will not be scheme breaking.

Clearly a new house brings impacts on infrastructure and to exclude paying for it simply on the basis of who builds it must be wrong, unless there are social benefits which is presumably why social housing is excluded.  There are of course potential costs and complexity to local authorities, let alone issues of definition which government will have to tackle.  Difficult to see any real difference between self build where you pay a builder and a typical market built house.  Also the need to monitor who occupies a house for 7 years otherwise they have to pay...is really going to go down well with the paranoid "they are all watching us lobby".

As with the much heralded (and temporary) freeing up of larger extensions, self build is not going to change the world nor turn the economy round.

It is yet another DCLG headline grabbing sound bite, normally in advance of any worked up, evidenced or tested proposals.  Most extensions are too small to pay CIL and home improvements which do not increase floorspace above 100 sq m are also excluded anyway.  CIL is simply a very complex process to administer and these proposals make it even harder.  Mr Pickles take note - why not apply your own red-tape challenge to a system you have set up.

Is there anybody out there that has, possibly inside, information as to when we may see the next lot of Amendment Regulations in draft form?

The way in which Eric Pickles made his statement and the way it has been reported in the mass and specialist press has led people who wish to self-build to believe that the CIL exemption is already in place.

We all need a degree of certainty as soon as possible so that we can correctly and helpfully advise people. 

I think it is likely that there will be an announcement about changes to the regs sometime soon - but what will be included. In the past not all regulation changes have followed on from the consultation ( or not at the sam time). I will try and put them up on the website as soon as I hear and on the discusion forum.