Community Infrastructure Levy

Realities of the scheme, which attempts to replace Section 106s with a transparent development levy, begin to hit home.

The Community Infrastructure Levy (CIL) is now in effect in two local authorities – Newark & Sherwood and Shropshire UA – and due to start in around 20 more during 2012. The charge, which aims to replace the current patchwork system of locally negotiated Section 106 Agreements and Planning Obligations (some of which have affected self-builders while others haven’t), is placed on all housebuilders including self-builders and home extenders if their new building is more than 100m2 (gross internal floor area).

The two local authorities who currently enforce CIL (as of going to press) give an early indication of how CIL is going to affect self-builders and extenders. Shropshire has set its CIL at £40/m2 in urban areas and £80/m2 in rural parts of the county. Newark & Sherwood has a similar range of scales, with development in poorer parts of the borough exempt, while in more affluent parts, developers are expected to pay £70/m2. The two local authorities are on the Government’s list of early adopters, which also includes Poole (up to £211/m2), Norwich (up to £160/m2) and Huntingdonshire (£85/m2). This means someone self-building a typical 200m2 house will have to pay a charge of around £16-20,000 at least (usually payable within 60 days of commencement of work).

Exemptions are in place for all properties that involve a change of use (e.g. barn conversions); also, if a new self-build involves the replacement of an existing dwelling, the floor area of the existing house to be demolished can be subtracted from the chargeable total.

Understandably, Homebuilding & Renovating is very concerned and is undertaking a major investigation of this issue. Please let us have your opinions by clicking here

List of Local Authority Community Infrastructure Levy charges released to date
(updated: 7 January 2012)

 

Council Charge Notes Total 200m2 Charge When Enacted
       
Brent, London Borough of £200/m2 £40,000  
Bristol City Council

£50-70/m2

£10-14,000 Autumn 2012
Colchester Borough Council £120/m2 £24,000 Later 2012
Croydon, London Borough of £0-120/m2 £0-24,000  
East Cambridgeshire District Council £40-90/m2 £8-18,000 Autumn 2012
Elmbridge Borough Council £125/m2 £25,000 Autumn 2012
Exeter City Council £100/m2 £20,000  
Harborough District Council Affordable Housing Contribution £22-40,000 (based on formula)  

Havant Borough Council

£84-105/m2 £16,800-21,000 End of 2012
Huntingdonshire District Council £85/m2 £17,000 May 2012
Mayor and Assembly for London (additional) £20,£35,£50/m2 (Zone 3,2,1) £4-10,000 Additional to London Borough
Merton, London Borough of £0-385/m2 (£385 applies to Wimbledon) £0-77,000 June 2013
Mid Devon District Council £113/m2 £22,600 April 2012
Newark and Sherwood District Council £0-70/m2 £0-14,000 1st November 2011
Norwich City Council £135-160/m2 £27-32,000 Summer 2012
Plymouth City Council £60/m2 £12,000 Summer 2012
Poole Borough Council £75-211/m2 £15-42,200  
Portsmouth City Council £105/m2 £21,000  
Redbridge, London Borough of £70/m2 £14,000  
Richmond, London Borough of £50/m2 £10,000 Summer 2013
Shropshire UA £40/m2 urban, £80/m2 rural £8-16,000 1st Jan 2012
Southampton Council £105/m2 £21,000  
Torbay Borough Council £100/m2 £20,000  
Wandsworth, London Borough of £0-250-575/m2 £0-50,000-115,000  
Wycombe District Council £125-150/m2 £25-30,000 Spring 2012

 

Further reading

 

Discuss the Community Infrastructure Levy and Read More

#1

Commenting has been disabled

Samuel Joy
Fri, 13/01/2012 - 10:07
Samuel Joy's photo

Commenting has been disabled on this article as to allow all discussion on the CIL to be in one place on the forum.

The link to the forum discussion on CIL is http://www.homebuilding.co.uk/forum/building-plots/community-infrastrucu...

Kind regards,
Sam Joy (Online Editor)