For many homebuyers, the idea of building your own home may seem an unrealistic prospect. Difficulties obtaining mortgage finance and a lack of funds for upfront costs mean that perhaps in the past this has been an option limited to wealthier buyers. With the launch of the government’s new Help to Build scheme, this may start to change. £150m of government funding is being provided to make it easier and more affordable for people to build their own homes.
The scheme intends to ensure that self builds and custom builds will become a realistic option for a wider range of buyers, with lower deposit mortgages and an equity loan similar to under the Help to Buy scheme. Recent changes in people’s housing needs as a result of the pandemic may make it more difficult for buyers to find an existing home that suits their requirements. Custom built homes giving the homeowner control of the design and specification of the project could be part of the solution. This could provide an opportunity to include more office space now that home-working is the norm, as well as being invaluable where a family has specific requirements eg. for disabled people or multi-generational households.
The government estimates that self and custom build projects could deliver 30-40,000 new homes a year and will benefit many SME builders, a further indication of the government’s intention to build our way out of current economic difficulties. Further details of the scheme, including how to apply, will be available in the summer.
For more information on the scheme, and affordable housing, please contact our dedicated team.