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CUSTOM AND SELF BUILD BRIEFINGLOCAL GOVERNMENT ASSOCIATION

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Custom and Self BuildObligations and Opportunities

• Overview and Context• Review of Statutory Duties and what it means in practice

(illustrated with key appeal decisions)

• Some examples to illustrate where this being done successfully

• Council approach to supply and monitoring• councils are doing to promote, facilitate, and enable

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Definitions

Self Build…

Where you find a plot of land, determine

the design of your home, and then select

a contractor to build it.

Custom Build…

Where you buy a pre-prepared plot of

land and then engage with a specialist

design-and-build contractor to

construct it.

Both can be undertaken by individuals or groupsBoth can be single dwelling/multi dwelling

Key: A home built to the plans or specifications decided by the occupant

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Possible Development Types• Single, detached plots• Smaller homes on small plots• Family homes on larger plots• Larger infill developments• Regeneration opportunities• Terraced properties• Apartments

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Development Delivery Models

• Individual Self Build• Community / Collective self build projects• Serviced/self build plots on small/large sites• Custom build on larger housing sites• Commercial Custom builder-enabled homes• Self-finish homes• Starter homes (-> First Homes)• Affordable homes

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Why support CSB (policy drivers)

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Why support CSB

Static level of delivery via market housebuilders

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Some Facts about CSB• 13,000 homes built in 2016; expect 16,500 home

completions by 2020▪ This is already more than the office to resi PD which was

around 13K in 2018

▪ But how much of this is counting the windfalls that have always been there – is it real growth?

• 67% of buyers would prefer not, or are unlikely, to buy volume housebuilder homes*▪ This is not competing with volume build, but adding to it

• More than 80% of SME builders want to do more custom/self-build projects**

* Ipsos Mori data for Home Builders Federation

** Federation of Master Builders members survey

https://www.designingbuildings.co.uk/wiki/Completion

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NaCSBA/Building Societies Assoc’n 2020

Nearly half (48%) of

those between 18 and

24 were interested in

building their own home, compared to

just 18% aged 55+.

Traditionally self build has been seen as the reserve of older members of society aged 55+, with equity in their property. The data indicates that a new, younger generation is viewing

building a home as an appealing route to home ownership.

YouGov survey… total sample size > 2000 adults. Fieldwork was undertaken online, between 9th–11th October 2020.

2 31 Awareness of the Right to Build legislation

remains low, with 83%

of people unaware of

the self build registers.

Introduced in 2016, the self build registers are an important source of evidence for local authorities in England of the demand for self build homes, supporting them in their policy and plan making.

The registers are the first step for anyone wanting to self build.

1 in 3 people (32%) are interested in

building their own home at some point in

the future, including

12% who said they

were ‘very interested’.

This is lower than older figures, but NaCSBA believes it to be more robust – supported by the clear definitions of custom and self build in the survey.

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Benefits : Communities, Councils, Landowners

Communities• Wider choice• Can help with affordability• More community cohesion

• Beauty in diversity of housing

Builders & Landowners• More Local Business & Tap

into wider market (different offer)

• Accelerate build out (people want to build their dream home now)

• Improve site marketability (wider offer/more choice)

• Shares risk if working with specialist enabling partner

• Can improve viability and help with cashflow

Councils• Accelerate and grow

housing supply• Improve housing choice

/quality• Support local economies

and smaller builders• Modular and sustainable

construction friendly• Fewer planning

objections

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Duties on Councils since April 2016

Self-build and Custom Housebuilding Act 2015:• keep and publicise a Register of people who want to self/custom build in

their area; • have regard to Register when exercising planning, housing, land disposal,

regeneration functions

Housing and Planning Act 2016:• duty on Councils to meet demand by granting ‘development permissions’

for enough serviced plots to meet demand on rolling annual basis (three years to deliver, as evidenced by registered needs)

“Right To Build” duties on Councils

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Councils meeting duty

• NaCSBA Survey Oct 2019• 45% of LPAs stated they

have met their duty*

• 37% provided no response

• 18% accepted they had not met their duty

Council Self Build Registers(NaCSBA Survey)

YearAnnual

increase Cumulative

Entries per

FOI

2019 11,420 55,298 45,655

2018 10,878 43,878 37,156

2017 15,000 33,000 33,000

2016 18,000 18,000 18,000

* some councils mistakenly stated as all small permissions in land supply assumed to be CSB supply

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… clarification by appeal

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Material consideration& not all small schemes are CSBappeal decision: Land west of Parsonage Road, Uttlesford (Jan 2020)

• Inspector recognised unmet demand and importance of legal mechanism to secure

plots:

“Identified demand for self-build plots has been demonstrated. The provision of 12 plots, being some 10% of the overall number, would help to meet that demand and the requirements of the Self-build Act and accord with paragraph 64 of the Framework. A mechanism to ensure that such development would meet the definition of self-build and custom-build housing is necessary and the provisions do that.”

• In drawing together conclusions in the planning balance, the Inspector found:

“In light of…the unmet demand for self-build plots, these are benefits of the proposal, which…weigh very heavily in its favour.”

https://acp.planninginspectorate.gov.uk/View

Document.aspx?fileid=36115395

https://acp.planninginspectorate.gov.uk/ViewDocument.aspx?fileid=36115395

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Appeal decision: Bromsberrow Heath, Forest of Dean (April 2019)

• Inspector cited LPA’s misunderstanding of Time for Compliance Regulations to

clarify:

The 3-year period runs from the end of each Base Period”.

• And how the lack of a clear policy position does not negate their statutory duty:

Given the lack of any clear policy within the development plan regarding such

housing or evidence of local initiatives to promote it, I do not share the Council’s apparent confidence that the requirement would be met.”

https://acp.planninginspectorate.gov.uk

/ViewCase.aspx?caseid=3213122Base Period Calculation & Council Responses to CSB

https://acp.planninginspectorate.gov.uk/ViewCase.aspx?caseid=3213122

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• Inspector highlighted that local eligibility test should… :

only to be applied by local authorities where there is strong justification for doing so. A local connection test should only be applied in response to a recognised local issue.

• In drawing together conclusions the Inspector found:

In view of the importance attached to provision for self-build housing in the NPPF and PPG, I do not accept the Council’s view that it should be treated simply as a component of general market housing. The tilted balance is therefore engaged in this case.

Running Part 1 & 2 of registers …https://acp.planninginspectorate.gov.uk/

ViewDocument.aspx?fileid=38381365

https://acp.planninginspectorate.gov.uk/ViewDocument.aspx?fileid=38381365

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A (very) few illustrations

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Tadpole GV

S/OUT/19/1064 | OUT 14no custom build dwellings, access, landscaping, layout and scale not reserved. | Land Off High Ground Tadpole Garden Village Swindon Wilts https://pa1.swindon.gov.uk/publicaccess/applicationDetails.do?activeTab=documents&keyVal=PUHGJ0PTHZP00

https://pa1.swindon.gov.uk/publicaccess/applicationDetails.do?activeTab=documents&keyVal=PUHGJ0PTHZP00

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Tadpole GVS/OUT/19/1064 | Outline Planning Application for the erection of 14no custom build dwellings, access, landscaping, layout and scale not reserved. | Land Off High Ground Tadpole Garden Village Swindon Wilts

https://pa1.swindon.gov.uk/publicaccess/applicationDetails.do?activeTab=documents&keyVal=PUHGJ0PTHZP00

https://pa1.swindon.gov.uk/publicaccess/applicationDetails.do?activeTab=documents&keyVal=PUHGJ0PTHZP00

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• About 1,900 plots for new

custom and self build homes

• Build out rate > 100 homes per

annum

• Local Development Order gives

planning permission

• Detached homes on serviced plots

(including small Pocket Plots)

• Tailored Finish turnkey homes

• Confirmation of Compliance application

(no publication/consultation requirement)

• Shared ownership & rental, in partnership

with Housing Association

• 1-2 bed apartments with bespoke

individual finish from a range of options

Delivery at scale: Graven Hill, Bicester (Cherwell DC)

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Neighbourhood Plans• Two allocations for self build

housing (for people with local connections)

• Support for affordable housing “one mechanism for providing affordable housing for local people is to enable people to build their own homes, or have them custom-built”

https://www.southdowns.gov.uk/wp-

content/uploads/2018/01/20150927-PNP-Made-

Plan_Amend_2018.pdf

https://www.southdowns.gov.uk/wp-content/uploads/2018/01/20150927-PNP-Made-Plan_Amend_2018.pdf

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0https://www.teignbridge.gov.uk/media/8308/single-plot-

exception-guidance-a5-landscape-may-19-v2-web.pdf

Affordable Self Build Exception Sites

• Plot and service charges ca £25,000

• Size Limit 100m2 (3b, 5p)• Re-sale values will be limited

to 60%-80% of open market values depending on local house prices and wages.

• Local Connection Clause• Template UU provided

Shropshire led the way with rural affordable self build exceptions: “not normally be permitted to exceed 100 m2”

https://www.teignbridge.gov.uk/media/8308/single-plot-exception-guidance-a5-landscape-may-19-v2-web.pdf

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Planning policy/Guidance

• ‘percentage’ policies

• housing mix policies with

Custom/Self Build references

• Supplementary Planning Documents

• Promotion through Neighbourhood

Planning (work with communities)

Strategies and Delivery Plans

• Housing Strategy commitments

• Custom and Self Build Action Plans

Affordable Housing-led

initiatives

• Policy (e.g. Rural Exception

Sites)

• Delivery by working with

Housing Associations &

Community groups

Council Land

• Disposals

• Acquisitions

Call For Sites

• Specific

reference to

Custom/Self

Build

How are local authorities meeting demand

Financial support

• Mortgages and

development

finance/deferred

payments

Projects ; landowner/builder

engagement

• Pilot projects on own land

• Join ventures (e.g. Homes

England)

• Forums/events with

landowner, agents and

developers

Decision Making

• Reference in Officer Reports

• Where appropriate allow departures

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Planning Policies• Types of policies ▪ Percent on large/strategic allocations

▪ Allocations/support for small majors

▪ Affordable/Rural Exception Sites

▪ Infill Support

• LP and SPD Policies provide opportunity to set out your issues of control eg:

- Environmental standards

- Size limits in keeping with needs and area

- Principle Residency undertakings

- Future resale limits (First Homes?)

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Plan Making Guidance

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Counting Plots

Definitely CSB

Permission with signed Unilateral Undertaking committing to self-build;

Permission with condition or agreement for marketing the plot(s) as a CSB

opportunity;

Permission that creates a new dwelling and has a submitted Form 7: Self Build

Exemption Claim Form - Part 1 and Part 2.

◆

Possibly CSB

requires evidence

Outline permissions; Full permission with unknown intent;

Rural/Agricultural worker’s dwelling;

Multi-unit flat where the owner creates multiple flats, and intends to occupy one as

principle residence;

Permitted Development/ Prior Approval (conversions);

Dwelling demolition and redevelopment;

Community Land Trusts.

◆

Definitely Not

Certificate of Lawfulness for a dwelling;

Caravans are not self-build;

Build to Rent development;

A substantial enlargement or redevelopment that creates new floorspace but not a

new dwelling

▪ Ancillary Accommodation

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• CIL Exemptions Part 1▪ How many of these have had

commencement notice issued?

▪ Ensure they are new dwelling permissions (not just additional floorspace)

• Non-CIL Authority: at application stage enquire ; simple statement of intent

• Need to Know in order to consider as part of officer report/decision

Monitoring Supply

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Facilitation• Local Plan Policies to encourage

& provide policy “hook”

• Prepare SPD to support delivery

• Affordable Self Build Exception

sites?

• Better understand delivery

models and how to facilitate

• Establish in-house advisory

facility to Custom/Self Builders

• DM on Front foot for delivery; LDOs, Simple communication

Promotion• Refresh and promote

Register and link to register

of land

• Promote to landowners and

communities (info flyers)

• Neighbourhood Plan process

• Landowner/Agents Forum

• Public action days/events

• Officer/Member Champion

• Engage with Register

Enabling• Identify Council land to bring

forward opportunities

• Work with landowners to

identify opportunities

• Consider introducing ‘revolving fund’ to enable serviced plots on suitable public sites

• Recognise Community

Support

Council Support: consider a ‘package’ approach