MPs Jeremy Hunt and Gregory Stafford want housing secretary Angela Rayner to investigate Community Infrastructure Levy legislation after multiple home owners were hit with devastating and unexpected financial demands.

Community Infrastructure Levy is meant to ensure developers contribute to infrastructure, but exemptions exist for self-builds, annexes and small extensions - provided the exemption is applied for correctly beforehand.

In Waverley some residents face life-changing bills because of being unaware of the need for an exemption, incorrect paperwork, confusion over retrospective applications, and no legal right to appeal once work has started.

Local Conservatives exposed seven cases of home owners blindsided by Community Infrastructure Levy demands ranging from £45,000 to £235,000.

Steve and Caroline Dally of Godalming were hit with a £70,000 charge in 2020, forcing 65-year-old Steve to increase his mortgage payment by £400 per month until he turns 70. He fears he will have to sell his home to pay the debt.

Mr and Mrs Dally received planning consent to demolish and replace a home extension exempt from the charge. The bill arrived after they obtained permission for some minor amendments.

On January 28 Waverley Borough Council agreed to ensure people could appeal against the charges. The window for a discretionary review opens on June 1 and closes on May 31 next year.

The council is now trying to ensure householders are aware of the exemption paperwork when making a planning application.

Godalming and Ash MP Mr Hunt said: “This unintended consequence of Community Infrastructure Levy legislation has been a completely traumatising experience for Waverley residents hit with these huge levies, seemingly from nowhere.

“Those impacted now have a route to getting the money repaid – but they should not have had to fight for five years in some cases to be listened to.”

Farnham and Bordon MP Mr Stafford added: “The enforcement of this charge in Waverley has been devastating. One of my constituents is unable to pay and is accruing enormous interest on a debt they should be exempt from.

“While there is now cross-party support locally to fix this, I will keep standing up for residents and urging Labour to act nationally.”

West Berkshire Council has addressed 18 cases and is repaying £200,000. Cases have also emerged in Horsham and Bracknell Forest.

Waverley Borough Council’s Conservative group leader Cllr Jane Austin said: "More cases are coming to light and we are talking about huge sums.

“We’ve forced the council to act at the local level, but if national legislation is failing home owners it must be reviewed."

Mr Hunt and Mr Stafford want government intervention and have pressed Waverley to follow West Berkshire’s lead in rectifying these errors immediately.

Liberal Democrat Cllr Paul Follows, leader of Waverley Borough Council, said work was being done to investigate the issue and welcomed the cross-party collaboration that was going into it.

He added that his party inherited the regulations from the previous administration and the levy would be reviewed as part of the council’s Local Plan process.