Levy exemption for self-build homes comes into effect

The government has made it easier for people to build their own homes by cutting the Community Infrastructure Levy on self-built accommodation.

Property developers have to pay a levy to local councils to help with the cost of the infrastructure needed to support the development.

Some local councils charge £100 per square metre for residential property. This means that a four bedroom house, which would likely cover 150 square metres, would cost the developer £15,000.

However, as of 24 February, the levy no longer applies to self-build developers.

Communities Secretary Eric Pickles said: “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.”

Home owners who build an extension will also be exempt from the levy.

Please contact us for more information about the legal aspects of buying and selling a home.