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Would you build your own home if you could?

Would you build your own home if you could?

Nearly a third of people would have their own home individually built in the next five years if a finance option was available.


This statement comes after research findings from Norwich & Peterborough Building Society.

 

The research showed potentially strong demand for self-build projects, including that one in nine (12%) would consider undertaking a self-build project within the next year.

 

Previously the self-build market was estimated to be around 20,000 homes per year. Now, however the Government is backing a drive to boost the market from the current 15,000 to close to 50,000 homes per year, and has set up working parties to help cut red tape and make the process easier.

 

The largest attraction of a carrying out a self build property (42%), was to create a home that suited a person's individual wants and needs. Just over a quarter (26%) were interested by the likelihood of a self-build working out significantly cheaper than buying an equivalent established property.

 

Twenty one percent said they were attracted to self build because they could make a more efficient and environmentally-friendly home than with an established property.

 

Norwich & Peterborough Building Society, which offers self-build mortgages at up to 80% loan-to-value, has been one of the pioneers in the market to help people build their dream home.

 

Richard Barker, mortgage manager at N & P, said: "Self build is a market with huge potential which could have many benefits for those willing to carry out a self-build project, not to mention the benefits for the general economy and some of the problems surrounding the housing market in this country."

 

Around 15,000 people build their own homes in the UK every year according to the National Self-Build Association (NSBA) and the market is worth about £2billion, which is only 1.4% of the overall UK mortgage market.

 

More people have a property built to their own specification than are built by any of the UK's dedicated housebuiders, this accounts for around 15% of all housing stock in the UK.
But the proportion is low compared with Europe, where nearly 50% of all houses are self-built.

 

The NSBA wants to increase the self-build market to £6billion and 50,000 homes a year, which would be more in line with other countries.

 

Housing minister Grant Shapps wants to open up self-build to more people and is holding working groups to discuss how to finance it.

 

Barker says: "This research proves that people are genuinely interested in building their own home, if they can get the right products to help them."

 

He adds "There are many myths that need to be dispelled around self build - you don't have to have a background in the construction industry or know the difference between a chisel and a trowel. You don't even have to get your hands dirty at all as it is quite common for people to employ a project manager, and you can get a mortgage to help you buy the land you want your home to be built on."

 

"We welcome the work that Grant Shapps, the Government and the Working Group are doing to promote self build. There are a number of challenges which the industry needs to address, including the availability of land. Individuals and lenders shouldn't be put off by self-build, it is no more risky than other ownership models and we, as a responsible mutual society, are fully behind the initiative to empower more people in the UK to build their own homes."