Great news as self builders exempt from CIL tax

Self builders helped as community infrastructure levy ( CIL tax ) is dropped In what is a huge boost for people looking to build their own home, the government today has finally announced that the dreaded Community Infrastructure Levy (CIL tax) has been scrapped for self builders. With this news it is thought some 3000 homes in the UK that were in limbo, will now go ahead.

This is a extremely positive move to help people looking to have a self build or custom build house in future. The CIL tax – which stands for community infrastructure levy, has been a thorn in the backside of self builders for the past few years. For example, if a self builder had wished to build a 4 bedroom house of 200 square metres, it would have cost them £20,000 should a council have imposed a £100 per square metre levy on residential developments.

The relief from the community infrastructure levy will cover homes that are owner-occupied and built or commissioned by individuals, families or groups of individuals for their own use.

Making self builders exempt from the CIL tax is a logical move by the government. They will now hope that this inspires more people looking to build their own house to go ahead with their dream.

In a press release from the government, Communities Secretary Eric Pickle had this to say:

Building your own home is always a challenge and we are doing what we can to help people realise their dream and provide a home for their family. This change will save self-builders thousands of pounds and help many more in the future.

By boosting the numbers of people building their own home we can help increase the number of new houses built each year in this country and support local businesses. There are too many levies and charges on housing. By cutting these, we can help build more homes.

Ted Steven, chairman of the National Self Build Association (NaSBA) added:

It’s great news that the community infrastructure levy  (CIL tax) exemption for self and custom builders is now being implemented. We estimate that about 1 in 8 self-build projects has been ‘mothballed’ over the last 2 years, because of the impact of this new charge. So we anticipate the exemption will have a significant impact on self-build starts, with 2,000 to 3,000 homes coming off the shelf, and starting on site in the next few months.

This is good news for the people who want to build their own homes and it will also be good news for the supply chain and local construction related businesses that support the self-build sector.

It is not just new properties that will be exempt from the community infrastructure levy (CIL tax), extensions and annexes over a certain size also will. The government will soon be consulting on helping self builders even further, by looking into the removal of Section 106 tariff charges on self-build properties.

This follows other recent positive news from the government to help self builders and custom builders which include:

  • Making it easier to get a self-build mortgage, the government has been speaking to lenders and 26 of them are now offering self-build loans; gross self-build lending is predicted to increase by almost half between 2012 and 2015 to £1 billion a year.
  • Freeing up more surplus public sector land for self-builders with the Homes and Communities Agency to bring forward a range of sites for custom build homes.
  • Introducing a £30 million Custom Build Homes Fund which makes available repayable finance for larger multi-unit projects and grant funding for community self-builders who can now apply for a share of £65 million from the Affordable Homes Guarantees Programme.
  • Planning guidance that makes clear councils should help self-builders and establish demand in their area; this includes compiling a local register of people wanting to build a home so they have priority when new brownfield sites become available.

The CIL tax exemption for self builders will come into affect immediately.

Stay tuned to Build Your Own House for all the latest news and views on self-build and custom build in the UK.

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