Plots needed for self-builders

Estate agents could find themselves dealing far more often with plots of land for one-off houses, after housing minister Grant Shapps said he wanted to see many more self-built homes.
However, just one-quarter of self-builders can currently raise the funding they need to go ahead with their dream house projects, it has emerged. Estate agents are also cynical about the quality of some so-called Grand Design homes when it comes to a re-sale.
Shapps cited lack of finance as one of the barriers to self-build, and said he would work with lenders to ensure self-builders can get the finance they need.
But lenders’ reactions in these cautionary times may not be what the Government envisages.
Many lenders fight shy of self-build where mortgages are typically given in retrospective stages as the building project completes.
Self-build specialist BuildStore chief executive Raymond Connor admitted that only one in four self-build projects can currently get the finance needed.
Because lenders are so nervous of lending on incomplete building projects, and by self-builders’ notoriety for running out of money or taking far longer than they had planned, self-build mortgages also cost a premium.
Currently, around 10,000 properties a year – rather than the inflated 20,000 that is often quoted – are self-built, but Shapps wants to see the number grow.
He said that for far too long, the aspirations of ordinary people to build their own home have been thwarted by barriers and red tape.
He said barriers that stand in people’s way will be torn down – including the planning system, regulatory burdens, and lack of access to land and finance.
A new Community Right to Build will offer communities the chance to give the green light to new developments without the need for specific planning applications. This could be local people working alone to build their own homes, or entire communities coming together.
Shapps said: “Building your own home should not be the preserve of a privileged few. I want to break down the barriers that many aspiring self-builders often come up against.”
Shapps has asked the National Self Build Association to work with the Government on developing an action plan.
Ted Stevens, chairman of the NSBA, said: “We believe there are hundreds of thousands of people in the UK that are keen to build their own, very affordable homes, so anything the Government can do to help make this happen has to be applauded. By encouraging more self-build, people will get the homes they really want, very cost effectively. For example, it’s perfectly possible to build a three-bedroom home for around £150,000.”