£150m for Help to Build for Self and Custom Builders

Woman planning build - Help to Build

THE GOVERNMENT has announced £150 million funding for people to build their own homes.

The ‘Help to Build’ scheme will ensure that self and custom home building can become a realistic option to get onto the housing ladder through lower deposit mortgages.

Lowering the required deposit will free up capital, so people can build the home that they want, whether it’s a commissioned, made to order home, or a new design from scratch. The scheme will provide an equity loan on the completed home, similar to the Help to Buy scheme.

Custom Built Homes

Made to order homes allow people to customise the home they want based on existing designs. This could include more office space, or a particular design to support a family’s requirements including for disabled or older people.

Self and custom build could deliver 30-40,000 new homes a year: a significant contribution to the country’s housebuilding ambitions.

The scheme is part of the government’s wider Plan for Jobs as the new plans will also benefit small building firms, the government says. SME builders account for 1 in 10 new homes and the scheme will help scale up the number of self and custom build homes built every year.

Housing Secretary Robert Jenrick said: “Building your own home shouldn’t be the preserve of a small number of people, but a mainstream, realistic and affordable option for people across the country.

“The scheme we have launched today will help the thousands of people who’d like to build their own home but who’ve not yet considered it or previously ruled it out.

“Our plans will help get more people on to the housing ladder, ensure homes suit people’s needs like home working or caring for relatives, whilst providing an important boost to small builders and businesses too.”

The Prime Minister has commissioned Richard Bacon MP to lead a review on how we can scale up the delivery of self and custom build homes. The review will report its findings and recommendations in the summer.

This follows the news that major lenders have signed up to the government’s new 95% mortgage guarantee scheme. Lloyds, Santander, Barclays, HSBC, Virgin Money and Natwest are launching mortgages under the scheme.

The government has also announced £2.1 million in funding to help communities have a greater say in how their local area is developed. The fund will boost neighbourhood planning by giving additional support to local authorities in under-represented areas.

A further £330,000 is also available to councils wishing to pilot this approach to neighbourhood planning.

The National Association of Custom and Self Build’s ‘Right to Build Task Force’ was established to help local authorities, community groups and other organisations help deliver self and custom build housing projects across the UK. There is a Self Build Portal for help and advice.

>> Read more about self building in the news

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