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Wednesday 31 December 2014

Section 106 abolished fof Self-Builders




Section 106
Over the last few years there has been increased concern over development viability.  This is due to many projects getting planning without the realisation on the effect of the environment around it.
Section 106 was initially designed to assist the local community against the granting of planning permission for large developers.  They would then assist with payments towards the inclusion of communal items such as schools, roundabouts and changes to the local road designs.  This was fine until it effected all new property constructed including the individual one that may have been build by the owner and for the owner.  In many cases the local council have insisted on payment of many thousands of pounds before planning was approved even on a one-off construction.

Self Builders
On 25th November 2014, the Communities Secretary, Eric Pickles announced that people building their own homes will now be exempt from payments to local authorities.  This announcement was made at the Right to Build Summit at the House of Commons and will come into force immediately.
This is a massive boost for the Self-Build community and encourage those that cannot afford the additional cost or are sceptic about investing in this type of construction.  With the shortage of housing in the country any type of assistance is welcome and will come into force for anyone building less then 10 units and could effect hundreds of self-builders currently waiting for planning approval.
Jason Orme, Editor of Homebuilding & Renovating magazine, welcomed the announcement and said, "In other countries they incentivise people to build their own homes.  This exemption will be a major boost to anyone wishing to build their own home and bring us back to the mid 2000's when self builders were not taxed.  This decision by the British Government has been a major force for anyone wishing to create their own home."
Michael Holmes, Chair of the National Custom and Self Build Association, which campaigned for the exemption, said "To effectively tax people who wish to provide a home for their family with non of the profit enjoyed by the big developers, was always, in our opinion, a misuse of Section 106"
Looks like it could be a great opportunity for anyone wishing to invest in a new property this year!

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