DPRR/14-15/85
Self-build and Custom Housebuilding Bill
Memorandum by the Department for Communities and Local Government to
the Delegated Powers and Regulatory Reform Committee
INTRODUCTION
1. This Memorandum sets out the provisions in the Self-build and Custom Housebuilding
Bill (the “Bill”) which confer delegated powers on the Secretary of State and others;
explains why the power has been taken and the nature of, and the reason for the procedure
selected.
PURPOSE OF THE BILL
2. The Bill has been introduced by Mr Richard Bacon MP in order to promote self-build and
custom-housebuilding.
3. The Government has decided to support the Bill as a means of pursuing its objective to
increase the capacity and diversity of the house building industry to build more high
quality new homes, faster. It considers supporting the expansion of the custom build
sector will be an important contribution to this.
DEVOLUTION
4. The provisions of the Bill extend to England and Wales but will apply only in relation to
England.
SUMMARY OF THE BILL
5. The Bill provides for the following:
a) Provision for relevant authorities to maintain a register of individuals and associations
of individuals who are seeking to acquire plots of land in order to build houses for
those individuals to occupy as homes; and
b) Provision for specified authorities to have regard to the demand for self build and
custom housebuilding as evidenced by the register.
DELEGATED POWERS
6. Clause 1 (Registers of persons seeking to acquire land to build a home) of the Bill
provides that each relevant authority must keep a register of individuals and associations
of individuals who are seeking to acquire a serviced plot of land in order to build houses
for those individuals to occupy at homes. Details of the bodies which constitute a
relevant authority are defined in clauses 1(3)(4)and (5).
7. Clause 1(6) provides that the Secretary of State can provide in regulations that other
public authorities can be designated as the relevant authority for a specified area. Such
authority can be the relevant authority for its area to the exclusion of any other authority
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(so as to avoid there being multiple registers in an area). This means that a new authority
could replace an authority specified as a relevant authority in Clause 1(3).
i.
Power conferred on: Secretary of State
Power exercisable by: Regulations
Parliamentary procedure: Affirmative
ii.
An affirmative procedure is considered appropriate for these regulations
because a new duty is being imposed on authorities not specifically identified
within the Bill.
8. Clause 1(8) refers to the Schedule which makes provisions in relation to the registers
under section 1. The Schedule makes the following provisions:.
a) The registers
i.
Power conferred on: Secretary of State
Power exercisable by: Regulations
Parliamentary procedure: Negative
ii.
Paragraph 2 of the Schedule provides that the Secretary of State may make
regulations regarding how a register should be administered and maintained.
For example the form of the register, the information which should be
included on a register, procedures for amending and updating the register
which may including removal of entries.
iii.
If the Bill is passed, Parliament will have approved the concept that the
Secretary of States may prescribe, through regulations, requirements about
how a register should be maintained, as well as the categories of provisions on
which he can be prescriptive. The regulations deal with matters of technical
detail and therefor the Department thinks it is appropriate and proportionate
for it to be prescribed by regulations subject to the negative procedure.
b) Eligibility
i.
Power conferred on: Secretary of State
Power exercisable by: Regulations
Parliamentary procedure: Negative
ii.
Paragraph 3 of the Schedule provides that the secretary of State may make
regulations regarding eligibility criteria which a person must satisfy before
they can be added to the register. Paragraph 3 sets out items which the
provisions may relate to including circumstances of the individual (age
nationality and connection to the area), intention to occupy in the house once
built and how any purchase of land would be funded. Paragraph 3 also
provides that the regulations may include provisions relating to the cost and
financial arrangements of associations of individuals and body corporates
exercising functions on behalf of individuals.
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iii.
If the Bill is passed, Parliament will have approved the concept of including
eligibility criteria which an applicant needs to satisfy before being entered
onto the register. The Bill also sets out the types of provisions which the
Secretary of States may, through regulations, require applicants to satisfy and
so this also will have been approved by Parliament. The regulations deal with
matters of technical detail as to the specific information required to fulfil these
eligibility criteria and therefor the Department thinks it is appropriate and
proportionate for it to be prescribed by regulations subject to the negative
procedure.
c) Application to be registered
i.
Power conferred on: Secretary of State
Power exercisable by: Regulations
Parliamentary procedure: Negative
ii.
Paragraph 4 of the schedule provides that regulations may be made regarding
applications to join the register and lists the type of information which
regulations may specify an applicant has to provide, include information about
the applicant themselves, the individuals comprising a group or body
corporate who are applying to be registered, and the type of land an applicant
wants (i.e. details on price, size and location).
iii.
If the Bill is passed, Parliament will have approved the concept that an
individual may need to provide information as part of their application, as well
as the sorts of information which the Secretary of States may, through
regulations, require persons to provide. The regulations deal with matters of
technical detail as to the specific information required to fulfil these criteria
and therefor the Department thinks it is appropriate and proportionate for it to
be prescribed by regulations subject to the negative procedure.
d) Right to review
i.
Power conferred on: Secretary of State
Power exercisable by: Regulations
Parliamentary procedure: Negative
ii.
Paragraph 5 of the schedule provides for the Secretary of State to set out in
regulations provisions about an applicants right to seek a review of a relevant
authority’s decision to refuse their application to be entered onto the register,
refuse to renew and entry on the register or an entries removal from the
register, on the ground of eligibility.
iii.
If the Bill is passed, Parliament will have approved the concept of including a
review mechanism and the categories of decisions which may be reviewable.
The regulations deal with matters of technical detail as to the specific
information required to fulfil these criteria and therefor the Department thinks
it is appropriate and proportionate for it to be prescribed by regulations subject
to the negative procedure.
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e) Fees
i.
Power conferred on: Secretary of State
Power exercisable by: Regulations
Parliamentary procedure: Affirmative
ii.
Paragraph 6 of the schedule provides for the Secretary of State to set out in
regulations that a fee may be payable to the relevant authority in connection
with an applicants application to register. Paragraph 6 permits regulations to
provide for either the Secretary of State to determine a fee or the relevant
authority to fix its own fee.
iii.
The affirmative procedure is considered appropriate for these regulations, in
line with other fee setting powers in other planning related legislation (such as
the Town and Country Planning Act 1990).
9. Clause 2 (Duty as regards registers) requires that an authority (as listed in clause 2(2))
must have regard to each register that relates to its area when carrying out certain
specified functions. Clause 2(2)(j) provides that regulations may provide for other public
authorities to be authorities subject to the duty to have regard to the register, for specified
areas. Clause 2(3) provides that regulations under 2(2)(j) are to also specify the areas in
England that are those authorities areas for the purpose of Section 2.
i.
Power conferred on: Secretary of State
Power exercisable by: Regulations
Parliamentary procedure: Affirmative
ii.
An affirmative procedure is considered appropriate for these regulations
because a new duty is being imposed on authorities not specifically identified
in the Bill.
10. Clause 5 (Interpretation)
i.
Power conferred on: Secretary of State
Power exercisable by: Regulations
Parliamentary procedure: Negative
ii.
A negative procedure is considered appropriate and proportionate for the
definition of ‘serviced plot of land’ because outlining a definition is a matter
of technical detail, the principle that individuals are registering their interest in
a serviced plot of land will have been agreed by Parliament if the Bill is
passed.