Posted By: JoinerFor the record...

Didn't I read somewhere that we have a serious shortage of homes in England. I'm not sure that a local authority piling on costs to the price of new builds is the way to go.

My local authority tried to get a self build neighbour to sign an agreement limiting the resale value of the new house to £100,000 plus inflation. His solicitor said 'sign it' as it would be unenforceable in law. In the end they withdrew it.

Posted By: CWatters80% of market value

Define market value?

In Perthshire the local council now requires an educational contribution of around £7000 per new home (big builders excluded and free to negotiate their own contribution, social housing exempt) to go into a pot to provide funds for an expansion to school capacity where required. There are only about two school catchments in Perthshire where such a contribution is not required due to the availability of places. The kick is, you pay this money and the local school does not get the money so your child still may not get a place at the local school.

The contribution has to be paid before they will formally issue the planning permission. If you don not pay, you do not get planning permission. The only way around it is to sign a binding agreement to pay the contribution at a later point - building completed / land sold etc. My neighbour signed one of these - the contribution is indexed linked. Highway robbery has been the phrase used. I prefer the term extortion, as that is what this really is.

Posted By: stones(big builders excluded and free to negotiate their own contribution, social housing exempt)

So their 'mates' don't have to pay, insulting at best, at worst Poulson comes to mind!!

If I was self-building or building, and I'm not at present - I'm doing a larger application for a housing estate, I would be thinking about things like double height spaces where a mezzanine could be added later, houses of 98 sqm plus a 'conservatory' later, and so on.

It sounds like petty manipulation, but when the tax is measured in thousands and tens of thousands it becomes significant and you have to lose a bedroom, a downstairs bathroom, or the possibility of converting for a family annexe later. Sequencing will be critical.

Like any complicated system designed to extract cash, it incentivises particular behaviours if the taxation level is too high.

Ferdinand

For the record, again...

"Earlier this year Government consulted on proposed amendments to the CIL Regulations. Subsequently, Government released a summary of the responses received on this consultation and their proposed actions. Government also stated that they are seeking to introduce the amended CIL Regulations by the end of January 2014.

"Draft Amendment CIL Regulations (2014) have now been laid before the House of Commons for consideration and are available to view via the link at the bottom of the page."

http://shropshire.gov.uk/planningpolicy.nsf/open/63C27CBEAE1E06AF80257922004CC8E3

Indeed but still not clear when effective -
"However, until such time as the Amended CIL Regulations are introduced, Shropshire Council will be unable to reflect their content during the administration of the CIL process."

Exemption for self-build housing: procedure
54B.—(1) A person who wishes to benefit from the exemption for self-build housing
must submit a claim to the collecting authority in accordance with this regulation.
(2) The claim must—
(a) be made by a person who—
(i) intends to build, or commission the building of, a new dwelling, and intends
to occupy the dwelling as their sole or main residence for the duration of the
clawback period, and
(ii) has assumed liability to pay CIL in respect of the new dwelling, whether or
not they have also assumed liability to pay CIL in respect of other
development;
(b) be received by the collecting authority before commencement of the chargeable
development;
(c) be submitted to the collecting authority in writing on a form published by the
Secretary of State (or a form substantially to the same effect);
(d) include the particulars specified or referred to in the form; and
(e) where more than one person has assumed liability to pay CIL in respect of the
chargeable development, clearly identify the part of the development that the claim
relates to. 16
(3) A claim under this regulation will lapse where the chargeable development to which it
relates is commenced before the collecting authority has notified the claimant of its
decision on the claim.
(4) As soon as practicable after receiving a valid claim, and subject to regulation
54A(10), the collecting authority must grant the exemption and notify the claimant in
writing of the exemption granted (or the amount of relief granted, as the case may be).
(5) A claim for an exemption for self-build housing is valid if it complies with the
requirements of paragraph (2).
(6) A person who is granted an exemption for self-build housing ceases to be eligible for
that exemption if a commencement notice is not submitted to the collecting authority before
the day the chargeable development is commenced.