The proposed relief from paying the Community Infrastructure Levy would cover homes built or commissioned by individuals, families or groups of individuals for their own use and that will be owner-occupied.
Planning minister Nick Boles said yesterday: "For too long, self-build homes have been seen as an option for only a privileged few and we are determined to change that with proposals that have the potential to save self-builders thousands of pounds.
"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."
And housing minister Mark Prisk added: "I am determined that anyone who wants to build their own home should have the opportunity to do so.
"That's why on top of the £44m funding we're making available to help aspiring self-builders and local community groups to get their projects off the ground, today's proposals will ensure these small and bespoke projects do not incur large infrastructure bills through the levy.
"This package of support, combined with the advice available from leading self-build organisations, will ensure those looking to build will have the information and help they could need at their fingertips."
Single build homes have far less impact on infrastructure, whereas larger developments are likely to have more of an impact on an area from the cumulative effect of their building.
Along with helping people build their own home other proposed changes to improve the levy system will also benefit councils and developers.
The Community Infrastructure 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.
Consultation
A consultation issued yesterday proposes changes that would boost development and the building of new homes and businesses. The changes will make the levy fairer, faster, more certain and more transparent.
The levy already provides developers and landowners with more certainty ‘up front' of how much money they will have to contribute towards infrastructure.
