Martin Lewis discusses joining housing ladder during pandemic
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The Help to Build fund will make it more affordable for workers on average incomes to build a property that meets all their needs. It will also make it easier for first time buyers to get on the ladder with self or custom built homes on low deposit mortgages.
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.
“That’s why we are making it easier and more affordable – backed by over £150 million new funding from the Government.
“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 fund will cover equity loans – money from the government towards the cost – in a similar way to the Help to Buy scheme.
It will make it easier to get low deposit mortgages and improve the affordability of home ownership for self and custom builds, where a stage payment mortgage is required as the project progresses.
Custom-specification homes would allow buyers to create their own office space, meet family needs or allow easy disabled access.
Self and custom build-homes account for nearly 50 percent of the new-build market in Europe but just seven percent in the UK.
New homes can be made to order or built from scratch and the government hopes the changes will give a boost to small building firms.
Conservative MP Richard Bacon will lead a review into how to increase delivery of self and custom-build homes.
The Government estimates that the options could deliver 30,000 to 40,000 new homes a year.
Andrew Baddeley-Chappell, chief executive officer at the National Custom and Self Build Association the fund will mean greater choice for those with “ambition, sound plans and smaller deposits”.
“Custom and self build is about the homeowner having control over the design and specification of their project – enabling them to create the home they want, rather than the one someone else believes they would like,” he added.
“This scheme is all about delivering more and better homes, that more people aspire to live in and that communities are happier to see built.”
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