It is the dream of many people to build their own home. Whether it is just that perfect location that’s always had you thinking if only I could build my house here; the desire to have just the right room layout to suit your lifestyle and pastimes; or a feeling that you want to embrace the green revolution by using all the planet Earth friendly build techniques, materials and micro-generation technology that has surged into our consciousness over the last decade.
Unless you have the money to simply employ a design team and experienced builder to realise your dream on the perfect plot of land you’ve just acquired, then it isn’t going to happen. But there is another way and that is called Self Build.
Self Build has been around for years, but has never been high profile simply because in order to do it you have got to be pretty determined and resourceful. Buying a plot of land, working out a design, gaining planning permission and organising water, electric and perhaps gas supplies are the first headaches before considering how to break the build process down into trades that you have to manage. For most people the thought of doing this whilst holding down a job and perhaps bringing up a family is just a few steps too far. And, of course, you need the money. Before the financial crash, securing a self-build mortgage was fairly easy from lenders such as the demised Bradford & Bingley, but those days are now long gone.
Persuading a bank to lend money these days on solid bricks and mortar, that can be market valued so their risk is controlled, is hard enough, never mind a dream home yet to be built by people with little or no experience of building management. Lenders are very wary of lending on incomplete building projects and self-builders can be notorious for running out of money or taking far longer than they had planned. So self-build mortgages come at a premium.
Organising building work is always far more complicated than nearly everyone who embarks on a project expects, regardless of whether it is a retaining wall in the garden, an extension or a new dream home. And keeping to a budget, almost a black art if the costs aren’t fully understood at the start. Of course, anyone who has read my Guide to Project Management will know where all the pitfalls are.
At present, only 1 in 4 manage to get the funding they need to proceed with a Self Build home. Either they have lots of spare capital and require only a small mortgage relative to the build costs – they might already own the land outright – or they can demonstrate they really understand the build process and will properly manage it.
But this 25% success rate may be due for a change. The Housing Minister, Grant Shapps has just announced he wants to see more self built homes.
Currently, around 10,000 properties a year – rather than the inflated 20,000 that is often quoted – are self-built, but Shapps wants to see the number grow.
Shapps said: “Building your own home should not be the preserve of a privileged few. I want to break down the barriers that many aspiring self-builders often come up against.”
So apparently he is to pressure lenders to reconsider. The planning rules are already being relaxed to fast track the process without a lengthy application, so the future may just be looking brighter.
BuildStore is to host a lenders’ conference in March, in partnership with the Building Societies Association, to highlight the benefits of lending in this sector. I won’t be holding my breath for any sudden high street advertising by the banks offering Self Build mortgages, but perhaps with a bit more education they can be persuaded to be more proactive to help those with passion enough to realise their dreams.
