New Help to Build Scheme Opens Today

Building Design Plans

OPENING TODAY, the new Help to Build scheme has been launched by the Department for Levelling Up, Housing and Communities to help people build their own home.

The £150 million scheme will enable people to overcome prohibitive mortgage costs to build a home that is tailored to their needs and in a community of their choice, with a 5% deposit towards land and building costs.

Self and Custom Build

Most people are currently priced out of self and custom-designed builds because it can require huge sums up front – the average for a self and custom build deposit is around 25% of land and building costs.

The scheme can help people with specific living requirements, creating homes that are tailored to their needs, including those with disabilities or those who live with large families or elderly relatives.

The self and custom build sector will also be boosted according to Richard Bacon MP’s independent review (commissioned by the Prime Minister) which finds the sector could deliver 30,000-40,000 new homes a year.

Richard Bacon MP for South Norfolk, said: “I am very pleased by the government’s warm response to my Review. The government recognises the crucial role which custom and self-build housing can play in addressing the nation’s housing challenges, including delivering more affordable housing.

“Making it easier for people to build or commission their own homes helps to promote a more diverse housing market with more real choice and control for consumers.

“There is clear evidence that getting people more involved in decisions about housing helps to deliver houses that are better designed and better built, which are greener and cost less to run and which communities are happier to see built. I look forward to working with the government to progress this important agenda”.

Help to Build Gap

Help to Build will help families bridge the gap between their deposit and the cost of building material and land, allowing applicants to borrow between 5% and 20% of their costs across England – and up to 40% in London. Total build costs cannot be over £600,000, or £400,000 if the land is already owned, and applicants must live in the property as a primary home.

The government has also set out the measures that it will take forward from the Bacon Review to boost the sector. These include a specialist Homes England unit to bring forward more self and custom build plots on regeneration projects. Promoting the sector through the National Planning Policy Framework; and the Modern Methods of Construction Task Force will promote the use of modular factory-built to boost custom homebuilding.

See the OwnYourHome website.

 

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