Introducing phasing via an S73 application

Planning Advisory Service (PAS)

Open group | Started - July 2012 | Last activity - Today

Former Member, modified 7 Years ago.

Introducing phasing via an S73 application

Hi All

We have an approved development of 4 large detached homes which is carrying a rather hefty CIL liability. Works have not yet commenced.

In order to avoid paying the CIL, the developer wants to sell the plots off-plan and get purchasers to assume liability so they can each apply for self-build exemption before works commence. In order to avoid a disqualifying event on any one plot triggering CIL on the whole site, the developer also wants to phase the development so that each plot is treated separately for the purposes of CIL. The initial infrastructure works will be phase 1. All this, it seems, is allowable.

So my question is... Can the developer secure phasing approval via an S73 application or will he have to submit a new full plans application?

Thanks,

Tim.

Bryan Lyttle, modified 7 Years ago.

RE: Introducing phasing via an S73 application

New Member Posts: 2 Join Date: 12/04/16 Recent Posts

Have a look at the Housing and Planninmg Act 2016 Regulation 9

This clarifies what self build is and (a2) excludes exactly the activity you are describing.

It would also prevent the developer coming back four times with individual applications for the development unless they could demonstrate to the statisfaction of the LPA that the owner had significant design input.

My understanding is that this will be enacted at the end of October 2016

Bryan

Carol Gore, modified 7 Years ago.

RE: Introducing phasing via an S73 application

Enthusiast Posts: 42 Join Date: 20/10/11 Recent Posts

I believe Bryan is right. As far a we understand it, if it isn't an outline planning application, then they can't claim SBE on the plots, regardless of phasing.

We have had an outline application with a phasing plan, but no design details. They are going to sell each plot (each plot is a phase in itself), and the purchaser will submit the REM on that phase, seemingly enabling them to claim SBE. We are still looking into, but this route does seem to be allowed.

But..........if the planning app details specs / designs, then the purchaser cannot be considered a Self-Builder, therefore unable to claim SBE.

Would love to see anyone elses thoughts on this.

There are a few things we are runing by legal to see if we can control the timescales and length of development as this route could mean it takes a while for the site to be finished!

Former Member, modified 7 Years ago.

RE: Introducing phasing via an S73 application

Thanks Carol & Bryan

Are you saying the developer's proposal will not be allowed after the Act goes live or is it not allowed right now?

If allowable until the act goes live, the developer still has the narrowest of windows in which to secure an approval.

Tim.

Former Member, modified 7 Years ago.

RE: Introducing phasing via an S73 application

Hello again Carol and Bryan

Our CIL avoiding developer has got his solicitor on the case who claims that the new self-build definition in the planning act does not apply to CIL and that CIL reg 54A (2) prevails, ie: that a house commissioned by P to be occupied by P as their sole residence can be defined as self-build. Their logic states that as the developer has a selection of houses with permission and a buyer says, 'I commission you to build the house as described in plot c' then that is good enough in thier view.

We are seeking legal advice but would welcome your view too.

All the best,

Tim.

Simon Anstey, modified 7 Years ago.

RE: Introducing phasing via an S73 application

Enthusiast Posts: 74 Join Date: 17/07/15 Recent Posts

Tim,

If you did allow the self-build exemptions before building do you think the potential occupants would be able to fulfil the requirements of Form 7 part 2 ?

I haven't had any Form 7 part 2s yet and have been wondering how easy it will be to fulfil the obligations. It seems easy to meet the conditions of part 1 but I will be interested to see if it is quite as easy to meet the conditions of part 2.

Whilst we may not like the efforts of people who seem to be trying to bypass the spirit of the regulations, if people meet the requirements of the (some might say flawed) regulations then the exemptions must be granted.

Simon

Former Member, modified 7 Years ago.

RE: Introducing phasing via an S73 application

Good point - I think I'll ask our CIL avoiding developer if his 'self-build' clients will be made aware of what supporting evidence has to be provided. My guess is that he has no intention of telling them as it may jeopardise a sale.

In the meantime, we are seeking counsel's advice.

Tim.

Simon Anstey, modified 7 Years ago.

RE: Introducing phasing via an S73 application

Enthusiast Posts: 74 Join Date: 17/07/15 Recent Posts

Tim,

Any potential purchasers are going to find out about the CIL liability though as they will have to assume liability in order to claim the exemption. I can see that they might be reluctant to do this before purchase, and if they don't liability will remain with the developer. The liability will also appear on their local search. There doesn't seem to be a lot of incentive for a potential purchaser to go along with the developer's scheme to avoid CIL, unless he can persuade them that they will get a significantly cheaper house in return for some inconvenience and potential risk in trying to claim that they are self-builders.

I will nevertheless be interested to learn the view of your counsel if you are able to share it in due course.

Simon