In its annual survey of customers’ home-build aspirations, Norwich & Peterborough Building Society (N&P) has revealed that 85% would consider, or have considered, having a home built to their specifications ‘ up 15% on last year. Of those who have already completed a self-build project, 63% said they would do it again.
The self-build figures from N&P show that from 1995 to 1999 the number of self-build mortgages with the lender increased by 700% ‘ and it is continuing to grow. The market is thought to consist of around 20,000 properties a year, with one in five houses constructed in Britain being self-built.
Alison Rolls, head of communications at N&P, said: ‘It is not an off-the-peg region of lending. IFAs do not need a specific background or training to step into this market.’
When asked about the main factors they would consider when choosing a location, 33% of respondents said local amenities would be the main consideration, 25% would choose to be near their family, while a further 21% would aim for a dream location.
Highlighting the differences between mainstream lenders and self-build specialists, Rolls said: ‘Normally when buying a home customers approach a lender knowing what they have to pay, but this not always the case with self-build. With self-build the first thing customers may wish to mortgage is the land, and not all self-build lenders will lend on land. Payments are made as the property is being built, so interest is not paid on property that does not exist, meaning the relationship between the lender and the client is longer.’