Is Self-Build housing and mortgages the future?
Craig discusses why Self-Build homes might be the future for the UK’s housing market, following a recent report.
What is a Self-Build home?
A recent report on housing found that 40,000 extra homes could be made available every year if more land was made available for people to build their own homes.
If you buy a plot of land, which you can actually borrow money for, and build your own home on that plot of land, it’s considered a Self-Build home. Even before this recent report, more and more clients are looking at Self-Build homes and Self-Build mortgages. With this type of mortgage, funds are agreed from outset and lenders release funds in stages as the build progresses, and Self-Build mortgages are not as complicated as many people believe.
Government Help to Build Equity Loan Scheme
The government is keen for more people to build their own homes, with plans for a Help to Build Equity Loan Scheme set to be launched later this year. The scheme will be a huge boost for the Self-Build market, as it will allow people with a small deposit to design and build their own home.
Boris Johnson recently commissioned the report by Richard Bacon, Conservative MP for South Norfolk, to look further into the potential opportunities for Self-Build homes. The report sets out the changes needed to increase the number of Self-Build projects, which, in turn, will see more greener homes being built. This will help the government to achieve its net zero emissions target and more energy and cost efficient housing.
England clearly needs to take a more active role with these potential plans if the numbers are to be achieved. Planning permission reforms also need to be looked at to encourage those looking to purchase land and build their own home.
The Housing Secretary, Robert Jenrick, stated that the government wants to help more people build their own home, and intend to make it an option for thousands who have not considered it before through the roll out of the Self-Build Equity Loan Scheme. The scheme will help get more people onto the housing ladder, and ensure homes suit people’s needs, while providing important income to both small builders and businesses.
Find out more about Self-Build mortgages and homes
If Self-Build mortgages or building your own home is something that you’re considering, there is a full explanation on how Self-Build mortgages work in Episode 16 of our podcast, where Mortgage Broker John Barry offers more insight into the world of Self-Build mortgages and building your own home. If you have any questions, please get in touch via the contact page.