CIL Charges - Phased Development

[PAJ333]

Have a site in South Yorkshire that was previously occupied by a neglected detached house within a large garden.

 

Obtained planning permission to demolish the existing house and build 4 new detached houses as self build plots on the site with a phased build program so each plot is its own chargeable development for CIL purposes in its own right, rather than across the whole site as a single development of 4 houses.

 

Am building Plot 1 which is under construction as a self build with CIL exemption in place. As well as Plot 1 qualifying for 100% CIL exemption as a self build, the floor area of the demolished house was also offset against the potential CIL charges for Plot 1 in the CIL - Form 1 filed with the LPA for that plot. As at that time it was expected all 4 plots would be built as self builds.

 

The plan was the sale of self build Plots 2, 3 & 4 would help fund the build of Plot 1.

 

Unfortunately Plots 2, 3 & 4 have not sold as self build plots. As a result these houses will have to be built and sold as finished houses and sold on the open market resulting in CIL charges arising as the build of each of these houses is commenced. Borrowing will now be required to fund the build of these houses.

 

Is there anyway of getting the floor area of the demolished house that has been allocated against Plot 1 to be reallocated against one of the other plots so as to minimise CIL charges on Plots 2, 3 & 4 that will now arise.

 

Any assistance will be most welcome.

[garrymartin]

2 minutes ago, PAJ333 said:

The plan was the sale of self build Plots 2, 3 & 4 would help fund the build of Plot 1... Unfortunately Plots 2, 3 & 4 have not sold as self build plots. As a result these houses will have to be built and sold as finished houses and sold on the open market resulting in CIL charges arising as the build of each of these houses is commenced.

 

Not an answer to your question, but just want to check - do you have planning permission for market housing or is the planning permission for self-build housing? You can't have permission granted for custom or self-build and then develop them and sell them as market housing.

[Alan Ambrose]

>>> is the planning permission for self-build housing?

 

There's a couple of plots near me that have been advertised as self-build plots that are not selling and I wondered why they didn't then agree with the LPA to sell them as standard plots.

 

As to the OP's question - my understanding is that the CIL self-build legislation is fairly vague and thus open to interpretation by your LPA (I've never read all the way through it)). I think the only option might be to trawl (yourself or via a lawyer) through the legislation or simply ask your LPA. In any event if your LPA says 'no', regardless of the legislation, I suspect you're not going to court and will have to suck it up. Worth asking though.

[garrymartin]

1 hour ago, Alan Ambrose said:

There's a couple of plots near me that have been advertised as self-build plots that are not selling and I wondered why they didn't then agree with the LPA to sell them as standard plots.

It's often a bit more nuanced. Sometimes, permission is only granted *because* they are self-build, especially if the tilted balance in planning can be invoked due to the LA not meeting their targets for Custom and Self-Build housing, or the balance or weighting towards granting permission is tipped because it is self-build. I know of local plots that have been successful with both self-build and live-to-work permissions but the same sites have been refused planning for open-market housing.

[PAJ333]

Thank you for your posts. Don't think there is an issue with the LPA with self build houses vs speculative houses. Indeed believe they would prefer speculative houses due to the CIL benefit for the LPA. 

 

Given the circumstances looking to see if there is anyway of getting the floor area of the demolished house that has been allocated against Plot 1 (self build) reallocated against one of the other plots so as to minimise CIL charges on Plots 2, 3 & 4 that will now arise (something that will not benefit the LPA).

[PAJ333]

After contacting planning consultants appears the floor area of a demolished property on a phased development is offset for CIL purposes against the first house to be under construction irrespective of whether its a self build or developer built house.