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News

Help people self or custom build to counter housing crisis, says trade body

BSA calls on new Government to provide opportunities for people to build their own homes to help deliver 200k per year

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'First' successful planning appeal for proposed custom build development

Inquiry results in first effective appeal to test NPPF custom/self build policy

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One in four Brits wish to build their own home, new research suggests

Around 13 million people in Great Britain dream of building a home for themselves, according to a new survey

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Self builders sought to take on plots in Cumbria

Plans submitted for four self build homes on one-acre development in small village

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Case Studies

Timber Frame Home, Ventnor

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Aldcliffe Yard, Lancaster

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Walthamstow Social Rent Scheme

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Prefabricated Passivhaus bungalow

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Cookham Dean, Berkshire

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Harvest House

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Bickleigh Eco Village, Devon

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Stoke-on-Trent Serviced Building Plots

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Forevergreen House

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Housing People Building Communities

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Sülzer Freunde, Cologne

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Berlin - 'Building Groups'

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Manor Farm, Kirton

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Straw-baling, Perthshire

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Low-cost Irish House

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Community Eco-homes, Devon

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Lancaster Co-Housing

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Cropthorne

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Findhorn

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St Just In Roseland

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Hempsted Green

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Vauban, Germany

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Warborough

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Almere, Holland

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Ashley Vale

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West Quantoxhead

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Castle Ring Wood

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The Camberwell Curve

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Trefeglwys

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Wellstride

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Hockerton

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Wokingham

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Top tips

Land Banking Schemes — How to Spot a Scam

Land Banking Schemes — How to Spot a Scam Read more

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Finance and Fees

Sources of Finance

SOURCES OF FINANCE

If you are planning to build your home on your own there are broadly there are three ways of financing a project: 

  • You are able to use your own savings (if so, you can probably stay in your existing home until the new one is built). Sometimes people are able to supplement their own savings by arranging an informal loan from family or friends.
  • You sell your current house to raise the finance you need, or use your existing property as surety for a loan to fund the new house. If you have to sell your current home you might then live in a caravan on site, or with relatives, or rent a house while the new home is built.
  • You borrow the money you need by taking out a mortgage on your proposed self build home. Usually you can only borrow about 75% of the land cost, and 60% of the build cost, so you will still need a sizeable deposit. Our SUPPLIERS DIRECTORY lists financial/mortgage providers.

You need to assess your situation and work out which method or combination of methods will work best for you.

Homebuilding & Renovating provide an up-to-date list of self build mortgage suppliers. 

If you are hoping to build as part of a group self build scheme you may be eligible for a loan under the Government’s Custom Build Serviced Plots Loan Fund. To be eligible there has to be at least five homes being built together. Read more about the full prospectus here. Note that a slightly different approach is being proposed from the Greater London area.

Community-led housing schemes are also eligible for grants towards some professional fees. Locality has more information.

Some of the bigger lending institutions may also be worth approaching, though in the current economic climate; it’s very difficult to get finance for group self build schemes.

BUDGET ADVICE

Budgeting can make or break a project. The more accurate your estimates, and calculations, the more likely you will build your dream home without any crippling over spends. See our BUDGET ADVICE page for things to keep in mind.

CIL/S106 EXEMPTIONS

The Government has confirmed that self builders (and the clients of custom builders) will be exempt from paying the Community Infrastructure Levy (CIL) that is normally charged when planning permission is granted for a new house. It has also onfirmed plans to exempt self builders from paying Section 106 (S106) Affordable Housing Contributions. More detail on these topics is available on our dedicated CIL/S106 EXEMPTIONS page.

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