Under the current system, new homes above a certain size are subject to the Community Infrastructure Levy.

The levy allows councils to raise funds from developers undertaking new building projects in their area. The money raised is used to fund the infrastructure needed to support the development and to support local communities.

Ministers say individuals, families and groups of individuals should be exempt from the levy if they are building a home for their own use and which will be owner-occupied. This could save self-builders thousands of pounds.

Planning Minister Nick Boles said: “Our proposals would ensure that self-build homes are exempt from this levy and will make an enormous difference to people looking to realise their dream of buying a plot of land and getting a builder to build them a home.

“We urgently need to build more homes and the proposed changes to the levy will help increase housing supply and help those businesses keen to grow.”

The proposal is now being put to public consultation.

Please contact us if you would like more information about the legal aspects of buying or selling a home.

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