You are here: Home - News -

Self-build mortgage applications leap 26% ahead of tax breaks

by:
  • 18/09/2013
  • 0
Self-build mortgage applications leap 26% ahead of tax breaks
Self-build specialist BuildStore reported a 26% rise in mortgage applications year-on-year after the government announced further moves to promote the sector.

The broker firm’s figures come as the government announced a raft of measures to promote self-build homes. These include council tax discounts for self-builder and helping them find brownfield land.

The government will also open up its £65m affordable housing fund to community self-build projects.

BuildStore Financial Services chief executive Raymond Connor said: “We know there is a lot of pent-up demand for people wanting to build their own homes, so these measures will help to meet that demand.”

He said the market was already improving: “The backlog of unsold plots are now finding buyers, and those who owned already owned land, but held off during the recession are now also coming forward looking to borrow the cash to build.”

The guidance encouraging councils to assess demand for self-build and the tax exemptions for self-builders were particularly welcome, he added.

The number of mortgage lenders willing to consider self-build in England and Wales has increased from roughly 12 in 2011 to 26 today. More than 90% of these lenders are building societies.

Building Societies Association head of mortgage policy Paul Broadhead said the concept of custom-build homes had boosted the sector’s appeal: “Before, people thought of it as Grand Designs-style boutique mansions. But with custom-build a developer may build the property to the point where it is wind and waterproof but you can decorate it yourself.

“It is more about customising property than walking around with bricks on your back.” In January, Datamonitor predicted that gross self-build lending would grow by 141% to £1.9bn by 2015, in part due to government support.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Barclays Bank branch
Barclays faces £100m payout

Barclays is to face another payout, of £100m, this time for a paperwork blunder that led to 300,000 customers being...

Close