Government Reviews CIL Rules Following Surge in Unfair Charges to Self-Builders and Homeowners
- TP Editorial Team
- Jul 22
- 2 min read
The government is actively reviewing the Community Infrastructure Levy (CIL) regulations amid growing concern that the system is unfairly penalising individuals—particularly self-builders—through rigid and inflexible rules.
CIL, introduced in 2010, allows local authorities to charge developers for new floor space, such as homes or retail units, with the funds used to support local infrastructure like roads, schools and community facilities. By 2024, 162 English councils had adopted the levy.
While self-build homes are intended to be exempt from CIL, the legislation has become increasingly unworkable in practice. Its strict procedural requirements have resulted in genuine exemptions being denied on technicalities—with severe financial consequences.
One common issue is where a self-builder unintentionally begins work before submitting the required exemption form. Even when the home clearly qualifies for exemption, the late submission triggers a full CIL charge. In these cases, local authority officers are unable to intervene, despite recognising the injustice.
These bureaucratic traps have caught out many genuine self-builders—individuals eager to begin work on their dream home, but unaware of the procedural fine print. The result has often been devastating, with families being hit with bills of tens of thousands of pounds.
Further issues arise when councils issue incorrect Liability Notices and errors are not challenged within 28 days. Beyond that point, individuals face complex legal hurdles to correct even obvious mistakes. Failure to take legal advice quickly offers no protection.
The scale of the problem has come to light through high-profile cases. In Waverley, Surrey, councillors agreed to review multiple cases of “crippling” charges, with some homeowners facing bills of up to £97,000. West Berkshire Council identified at least 18 similar cases, totalling around £250,000 in unjustified CIL demands.
Speaking to the Housing, Communities and Local Government Committee, Labour MP Joe Powell confirmed that at least 11 MPs had raised concerns about the issue and called for clearer national guidance.
Planning Minister Matthew Pennycook acknowledged that several individuals across the country had been “very, very badly hit” by the current regime and confirmed that the government is giving “very serious consideration” to amending the CIL regulations to prevent further injustice.
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