The government has claimed self-builders will save thousands of pounds with new measures.

Self-builders will be exempt from a levy charge paid for new buildings over a certain size.

The relief from paying the community infrastructure levy would cover homes built or commissioned by individuals, families or groups of individuals for their own use and that will be owner-occupied.

The coalition said changes soon to be implemented will provide more transparency and make the levy a more efficient way for development to contribute to the essential infrastructure needed to support development.

Levy money can be used to fund infrastructure that local people want in their area, such as traffic or park improvements or better community facilities.

The levy already provides developers and landowners with more certainty ‘up front’ of how much money they will have to contribute towards infrastructure.

Planning Minister Nick Boles said: “Our changes will make an enormous difference to people looking to realise their dream of having their grand design built and will save self-builders thousands of pounds.

“We urgently need to build more homes and changes to the levy will help increase housing supply and help businesses grow by making the system more flexible and fairer.

“Changes will also make sure we make the most of the buildings we already have and get more vacant properties back into use.”