Housing 

Definition of Self and Custom Build Housing

The National Planning Policy Framework defines self-build and custom-build housing as ‘Housing built by an individual, a group of individuals, or persons working with or for them, to be occupied by that individual. Such housing can be either market or affordable housing. A legal definition, for the purpose of applying the Self-build and Custom Housebuilding Act 2015 (as amended), is contained in section 1(A1) and (A2) of that Act’:

“(A1) In this Act “self-build and custom housebuilding” means the building or completion by—
(a) individuals,
(b) associations of individuals,
or (c) persons working with or for individuals or associations of individuals, of houses to be occupied as homes by those individuals.
(A2)But it does not include the building of a house on a plot acquired from a person who builds the house wholly or mainly to plans or specifications decided or offered by that person."

In summary, there is little difference between the two forms of development, with custom build being where a person commissions a developer to help to deliver their own home, whilst self-build is where a person is more directly involved in organising and constructing their home. In either case, it is expected that the dwelling will be the principal residence for the owner for at least the following three years.

A new dwelling will not be classed as a self-build or custom-built home:

• If a developer built a dwelling and sold it on the open market.
• If the future occupier of the dwelling chose a design for the dwelling from a collection of stock designs offered by a developer.
• If there is no evidence that the future occupier had a primary input into the design of the building, even if the building appears to be a ‘one-off’ bespoke design. Or
• If the applicant has submitted a reserved matters application with house design and layout etc. for approval before marketing the plots to self-builders.

The Wyre Forest Self and Custom Build Register

Local planning authorities have a duty under Section 2 and 2A of the Self-build and Custom Housebuilding Act 2015 to have regard to the Self and Custom build register and to ensure that there are sufficient planning permissions granted to meet the identified demand, within a 3-year base period (for example, 2016 to 2019/20). As per the legislation, WFDC holds a register of people seeking self and/ or custom build plots in the district. The register is divided into two parts, part 1 is where all can register an interest and part 2 is for those with a local connection to the district. Whilst regard will be given to meeting the need of all those on the register, priority is given to those applicants with a local connection.

Delivery of individual or community led self and custom build

In principle the Council will support self and custom build housing proposals where this is meeting a demand identified by the Council’s register. However, the proposal will be required to be in compliance with the wider policies and principles of the Local Plan. If the proposed location of a self or custom build unit is in a rural area, the applicant will need to demonstrate how they have addressed Policy SP.2 Locating New Development and Policy SP.11 Addressing Rural Housing Needs.

Where a community gets together to provide a self-build scheme consisting of self-build plots, such a scheme would be treated in a similar way to self-build as each plot is brought forward for planning permission and development.

Affordable Self and Custom Build

It is possible that custom and self-build housing schemes can deliver affordable housing. For example:

• Serviced building plots are made available below market value and are subject to a legal agreement that restricts the resale value of the completed property to below market value
• Homes are built as shared ownership properties – for example where a registered provider or Council constructs the homes to the waterproof ‘shell’ stage and then enables private homebuilders to enter into a special form of shared ownership lease to complete the property. Once the work is satisfactorily completed this earns the homebuilder an equity share in the property, which means they need a smaller mortgage or a lower deposit.
• A developer or landowner could work in partnership with a recognised Registered Provider or alternative affordable housing provider; or
• Where a self-builder commits (via an agreed legal document) that the resale of the dwelling shall be restricted to an eligible household for at least a 20% discount on market prices

However, there is no obligation on the Council to accept custom and self-build housing to be counted as part of the developer’s obligation to provide affordable housing. Where it does so, the Council would have to be satisfied that such provision genuinely was affordable housing (in accordance with national definitions) and such plots will be secured through a under Section 106 of the Town and Country Planning act (1990) (as amended) and in some cases, dependent on the scale or nature of development, via conditions.

Provision of Self and Custom Build on major development sites

Developers of sites with 50 or more units should consider Wyre Forest District Council’s Self and Custom housebuilding register. This means that the developer should provide serviced plots or custom build units, as agreed with the Council and evidenced by the need on the register. In the event that a developer cannot provide self or custom build plots, it is the responsibility of the developer to provide clear and robust justification as to why this provision of housing cannot be delivered on the site. This includes evidencing how they have worked with Self/Custom Build enablers to bring forward the proposed self or custom build portion of the site.

National Planning Practice Guidance (Self-build and custom housebuilding paragraph 26) provides a definition of a serviced plot of land as a plot of land that either has access to a public highway and has connections for electricity, water and wastewater, or in the opinion of the relevant authority, can be provided with access to these, within the duration of a development permission granted in relation to that land.

Connections for electricity, water and wastewater means that the services must either be provided to the boundary of the plot so that during construction, connections can be made, or adequate alternative arrangements are possible.

It is recommended that plots should be grouped together within a site rather than widely dispersed, however, for those with more than 10 self-build and custom plots, then these should be dispersed in groups across the site and preferably within different phases of development. Developers should ensure the provision of a range of plots that differ in size to reflect the need and budgets of people on the WFDC Self and Custom Build register.

It is good practice for developers to provide a mix of serviced plot sizes to meet the range of demand and affordability, subject to site-specific negotiations and the nature of the proposed development. There is scope for a mix of plot sizes, as long as this relates to the demand identified on the Council’s register (Part 1 and Part 2). This it to ensure that CSB plots secured cater to the variety of aspiring self-builders, including first time buyers, middle-income earners, downsizers and other specialist groups. Supplying a mix of plot sizes also plays an important part in enabling the delivery of housing to specialist groups.

If an outline application or a phased approach is to be taken, then either the indicative Masterplan or subsequent Phasing Plan should show the parcels of land identified as providing the self-build and custom housing plots.

Phasing of Plots on major development sites

On major development sites of 50 plus dwellings, the Council will expect the early delivery of parcels of self and custom build plots. The Council will work with developers seeking to make a case for the later phasing, if they have demonstrable commercial reasons why early phasing would be a challenge.

Some of the circumstances whereby the Council would not normally expect early phasing of CSB could include, for example, where there is a critical infrastructure requirement necessary to unlock development. There may be merit, given the potential complexity of phasing and the staff resource needed, to promote with developers the need to ensure early engagement with the Self Build and Planning case officers in respect of phasing. It is important that developers consider the timing of the servicing and provision of the plots early on as this is an important aspect of their delivery. On larger sites, this will be dealt with via a legal agreement such as a section 106 agreement. On smaller scale projects, this may be more simply dealt with via planning conditions.

S106 requirements

The Council will seek to secure self-build and custom build housing by way of a section 106 obligation.

A template section 106 agreement will:

State the amount of self-build and custom build housing,

• Outline the type and mix of self-build and custom build housing (as defined by the Self and Custom Housebuilding Act 2015 (as amended),
• Provide details of the marketing strategy, including details on who the properties will be marketed to, how they will be publicised.
• State the process for the reversion to market housing that could be built out by the Developer after a period of 12 months from initial marketing.
• Provide, without additional cost to the Plot Owner, vehicular access and foul and surface water sewers and water, gas, electricity and telecommunications service systems for the Self-build and/or Custom housing Unit linking in each case to the estate roads and service systems to be constructed and laid as part of the remainder of the Development and connected to highways and sewers that serve the area.

Plot Passports

Plot passports are a simple way of helping private homebuilders to understand what they can build on their plot. Plot passports are simple summaries of the design parameters for each plot capturing relevant information from the planning permission and Delivery Statement. They are short documents specific to each plot and form part of the marketing materials available for each plot. They act as a key reference point for prospective purchasers and form part of the marketing material available for each custom build plot to help private homebuilders to understand what they can build on a plot. They add value and certainty by acting as a key reference point for the purchaser, capturing relevant information from the planning permission, design constraints and procedural requirements in a concise and accessible format.

Design Codes

The purpose of a design code is to establish a clear set of design rules and parameters that future development will comply with. It will be required on sites where custom build units are being offered on site. These will need to be provided either as part of the planning application or will be requested and secured by planning condition. A design code should include:

• Site wide vision (for strategic scale sites)
• Site and context overview
• Options for customisation including external materials, landscaping options, internal finishes and options for where internal walls can be removed.

Marketing of Plots

Developers will need to prove adequate marketing. Proof of “adequate marketing” will include the following:

• Contact with people listed on the Register will be given priority to the self-build and custom housing provision within the site, prior to these plots being marketed in the open market. Where consent has been given by the Self and Custom Build applicant, WFDC will pass the details of people in the register to the developer.
• The dates and periods of when marketing promotions were live and details of how they were promoted and to which audiences. This will be monitored by the WFDC officer responsible for self and custom build.
• Copies of marketing materials
• Details of any social media promotions including local promotion
• Whether the serviced plots have been promoted on any national websites that promote self and custom build opportunities. This will be monitored by the WFDC officer responsible for self and custom build.

Where plots have been sold to another developer for delivery, this information should be shared with WFDC.