Solihull Metropolitan Borough Council chose the week of the inspirational Grand Designs Live, held at the National Exhibition Centre in Solihull, to close the door on all those seeking to self-commission a home in the borough. It did this through implementing a series of restrictions, including referencing an organisation that ceased to exist over 5 years ago.
Following his ‘Right to Build’ talk at Grand Designs Live this week, Kevin McCloud designer and presenter of Grand Designs stated: “At a time when we need a greater focus on sustainability and more affordable homes, it is beyond belief that any Council is making it impossible for such homes to be delivered.”
Andrew Baddeley-Chappell CEO of the National Custom & Self Build Association stated:
“I have no doubt that these changes being introduced by the Council are contrary to the letter and spirit of laws aimed at helping people to build or commission their own home, known as the Right to Build. The Council needs to reverse these changes and understand how it got into such a mess in the first place.”
Background to the Right to Build
The Self-Build and Custom Housebuilding Act 2015 as amended by the Housing & Planning Act 2016 is primary legislation. It states: “This is intended to make it much easier for people to find land to build or commission their own home, diversifying housing supply and revitalising smaller builders who have not experienced the same level of recovery as the large housebuilders since the financial crisis.”
The legislation requires all local authorities in England to establish a Register of all those who wish to self-build and to then ensure that sufficient plots come forward to meet the demand.
The legislation allows for three restrictions to be imposed on joining the Registers, but there are tests that need to be met for this to happen. As was intended, very few Councils (7% at 30 October 2021) impose all of these tests. Approaching 6 years after the legislation was introduced, Solihull is choosing to introduce all 3 restrictions. Furthermore, the way it is imposing some of these restrictions makes it impossible for anyone to meet the tests and so benefit from the legislation.
The reason for introducing these restrictions is clear. The Council is seeking an easy way of getting out of the duty that the legislation places on it. As at 30 October 2021 (the last date for which data is available), the Council had a shortfall in delivery of 247 plots, and this number was continuing to increase.
The worst of the tests imposed by the Council is the financial viability test. This states:
There will also be an assessment of financial resources. The Council will require relevant evidence of sufficient resources as follows:
- An offer for a self-build mortgage from a verifiable lender (for example, a member of the Council of Mortgage Lenders). Any evidence provided must clearly show that the release of funds for the purchase of land – which is usually the first phase of funding released – covers any proxy land value used by the Council for the purposes of assessing this criterion; or
- Written confirmation and evidence from a qualified financial advisor with active membership of a verifiable and appropriate professional body. This evidence should clearly outline that the applicant has sufficient readily accessible funds/savings/investments/equity to purchase land; or
- Any other information which demonstrates, to the Council’s satisfaction, that the applicant has sufficient resources to purchase land for their own self-build and custom housebuilding. The Council welcomes evidence of Islamic mortgages and no interest mortgages such as Murabaha and Ijarah.
These tests are impossible to pass.
- You can only effectively obtain a mortgage offer when you have access to land with permission to build – and therefore do not need to join the Register, and
- Qualified financial advisers are not in the business of providing financial statements for individuals when they are joining a register but not yet able to consider proceeding with a mortgage. They have many other immediate priorities – particularly at this time.
The policy references the Council of Mortgage Lender. This ceased to exist over 5 years ago in July 2017. This is clearly not a considered policy. In fact, it can be traced directly back to discredited polices previously imposed by other Councils such as Epping Forest District Council.
The action by the Council is directly contrary to the message from central Government that continues to support the growth of the sector. Just this year the Government responded positively to the independent review on growing the sector (The Bacon Review) and launched Help to Build enabling access to the market to those with a 5% deposit. As stated in commissioning the review: “We know that self and custom builders deliver high quality, well designed homes that are energy efficient, accessible affordable and welcomed by their communities.”
Find your local self build register on NaCSBA’s Self Build Portal.
Image: On stage at Grand Designs debating the Right to Build – (L-R) NaCSBA CEO Andrew Baddeley-Chappell, Richard Bacon MP, Kevin McCloud, Kunle Barker, TV personality and Mario Wolf of Custom Build Homes.
