MPs ask housing minister to resolve ‘unfair’ council charges for homeowners making renovations

In a letter to Pennycook, the Housing, Communities and Local Government (HCLG) Committee said there had been several press reports of homeowners receiving CIL charges for minor home improvements, despite the levy being intended for large-scale developers. 

The committee said some homeowners had received letters threatening imprisonment for not paying the charge. 

Local authorities can apply the levy on new developments in their area, and this can include homeowners, but homeowners should be exempted if residential annexes and extensions are completed in their main or sole dwelling. 

The HCLG received a letter from the CIL Injustice Group, which represents 50 homeowners across 14 constituencies, and said homeowners who undertook “modest projects” such as extensions, annexes or self-builds had faced charges from £40,000 to £235,000. 

However, in response to a question from Lee Dillon MP at the Ministry of HCLG Select Committee earlier this year, Pennycook said the levy was not meant to be used in this way. 

Sponsored

The changing role of the Bank of Mum and Dad

Sponsored by Aldermore

In its letter to Pennycook, the HCLG Committee asked if the ministry was still considering amending the CIL to stop homeowners from being charged unfairly and what the timeline for any change would be. 

It also asked if the ministry would consider changing guidance to local authorities to prevent unfair charges. 

Further, Pennycook was asked if local authorities had the discretion to issue CIL refunds where a homeowner has been unfairly charged, and whether they would consider requiring local authorities to review householder CIL cases with the intent to refund unfair charges. 

Florence Eshalomi MP, chair of the HCLG Committee, said: “It’s alarming to hear that some homeowners have been hit by unfair charges under the CIL Regulations.

“I hope the housing minister can provide reassurance about the government’s approach to tackling these unintended consequences and update the committee on what work it is undertaking with local councils to stop unfair CIL charges on homeowners.”