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News

Can you solve the housing crisis and win £50,000!

The Richard Koch BreakThrough Prize is this year offering anyone the chance of winning £50,000 for an essay on creating a popular policy to rejuvenate our property-owning democ....

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Teignbridge District Council brings on a range of Custom and Self-build opportunities

Thanks to its percentage rule for serviced plots, Teignbridge District Council is permissioning a range of opportunities for Custom and Self-builders in the South West.

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Community groups should take up learnings from free Right to Build Expos

The Right to Build Task Force has announced four more Expos fo....

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NaCSBA welcomes Kit Malthouse to the role of Housing and Planning Minister

Kit Malthouse MP has been appointed Housing and Planning Minister, following Dominic Raab’s move to the be the Secreta....

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Oakwrights brings on nine custom build plots in Herefordshire

Timber-frame manufacturer Oakwrights is bringing nine Custom Build plots to market in H....

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Case Studies

Bath Street Collective Custom Build

Bath Street Collective Custom Build

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Planning for retirement with Potton

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Bakers Shaw

Bakers Shaw mixed build-method Passivhaus

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Beattie Passive house

Manx passive home

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Contemporary Timber Frame Home

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Passivhaus Family Farmhouse

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Steel Farm

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Merlin Haven

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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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Manor Farm, Kirton

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Straw-baling, Perthshire

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Findhorn

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Almere, Holland

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Hockerton

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Top tips

Utility Connections

Utility Connections 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.

An up-to-date list of self build mortgage providers can be found here: 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 confirmed 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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