Mortgage News
Can self build be more than a fairy tale?
Stop me if you’ve heard this one before…
Once upon a time there were three pretty intelligent graduates (PIGs) who grew up and left home to seek their fortunes. This being the post credit crunch years, none of them could afford to buy a home, so they decided to build their own instead.
The first little PIG decided to build his house of straw, but couldn’t get a mortgage on it because of the non-traditional construction method.
The second little PIG decided to build his house of sticks, but couldn’t find a suitable plot of land on which to build it.
The last little PIG decided to build his house of nice strong bricks, but couldn’t get planning permission for his designs.
The End.
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Folklore and fairy tales are full of people building their own homes, so maybe it is this or just our cave dweller instinct for creating shelter which drives so many of us to want to build our own space in which to live.
The barriers for building your own home remain high and numerous. Lack of finance, a shortage of land, confusing planning requirements and building control regulations are all stumbling blocks for potential self-builders.
This is why Grant Shapps has recently stepped in to help create a fairy tale ending for those wishing to build their own homes.
A Department for Communities and Local Government project will try to raise the number of people building their own homes in the UK. Four groups will look at the major barriers to self build and I am pleased to have been asked to chair the finance working group.
We know that some building societies are active in the self-build arena as it fits well with their culture of supporting local people in owning their own homes.
However, there can still be major doubts in lending on a property which is not yet built.
And yet, self build could be the solution to many problems: first-time buyers who can build cheaper than they can buy; rural areas in Scotland where housing supply is low, but land is abundant; a new market in high energy performance properties; or high-spec renovation of properties which have fallen into misuse.
I hope to use my role in this work to help those who would build their own homes to live happily ever after.
Paul Broadhead, head of mortgage policy at the BSA