Watch Out For The New 'Extension Tax' Warns Property Expert

WARRINGTON, U.K. - Oct. 20, 2014 - PRLog -- The expected boost to the housing market  following the Government’s relaxation of building extension rules may have been cancelled-out by a new levy nicknamed the ‘extension tax’, warned Warrington-based property expert David Lister yesterday.

While some politicians have been ‘crowing’ about the temporarily improved permitted development rights now available to house-holders, little has been said about the Community Infrastructure Levy which enables local authorities to make charges against new developments, added the director of leading property search specialists X-Press Legal.

“Any development in a community has an impact on the local infrastructure like roads and pavements which are ultimately the responsibility of the local authority,” explained David. “It used to be the case that a developer’s application for planning permission for a new project would spark a period of negotiation between the developer and the local authority.

“The local authority would be seeking some financial support for the impact of the development on local infrastructure including roads and pavements and the developer would be seeking to keep costs  under control. However, they would eventually agree a compromise that was acceptable to both sides.

“Unfortunately, as a result of the financial impact of the recession years, developers have become much more cost conscious so more and more  local authorities seem to be signing up to the Community Infrastructure Levy to ensure they have the funds to cover the cost of adapting local infrastructure following development projects.”

Mr Lister says house-holders who are considering home extensions in view of the temporarily relaxed planning rules should check out their financial liability in terms of the Community Infrastructure Levy before they embark on any projects.

“The devil is always in the detail, added Mr Lister. “Checks should be made with your local authority planning or building control department before you commence any work. It pays to be crystal clear where the limitations lie.

“A handy reference website to visit is: www.planningportal.gov.uk”

ENDS