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 HousebuildingBill (the “Bill”) which confer delegated powers on the Secretary of Stateand 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 provisionsof 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 aregister 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 (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).

  1. Power conferred on: Secretary of State

Power exercisable by: Regulations

Parliamentary procedure: Affirmative

  1. 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

  1. Power conferred on: Secretary of State

Power exercisable by: Regulations

Parliamentary procedure: Negative

  1. 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.
  1. 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

  1. Power conferred on: Secretary of State

Power exercisable by: Regulations

Parliamentary procedure: Negative

  1. 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.
  1. 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

  1. Power conferred on: Secretary of State

Power exercisable by: Regulations

Parliamentary procedure: Negative

  1. 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).
  1. 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

  1. Power conferred on: Secretary of State

Power exercisable by: Regulations

Parliamentary procedure: Negative

  1. 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.
  1. 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.

e)Fees

  1. Power conferred on: Secretary of State

Power exercisable by: Regulations

Parliamentary procedure: Affirmative

  1. Paragraph 6 of the schedule provides for the Secretary of State to set out in regulationsthat 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.
  1. 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.

  1. Power conferred on: Secretary of State

Power exercisable by: Regulations

Parliamentary procedure: Affirmative

  1. 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)

  1. Power conferred on: Secretary of State

Power exercisable by: Regulations

Parliamentary procedure: Negative

  1. 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.