Speaking at today’s CML Future Housing Conference, BuildStore chief executive Raymond Connor (pictured) said that more lenders should look at providing self-build loans, arguing only a lack of funding is holding the sector back rather than demand, which he said has not dropped since 2007.
He told delegates: “The support from lenders is poor, other than in the mutual sector, which has grasped the self-build sector.
“They are really getting back to base roots in building houses like they did years ago. We are however suffering from a lack of finance.”
Connor argued that self build presented prime lending, with an average end LTV of 58%.
He said: “The risk profile of a self builder is very strong, with a very low incidence of arrears. The gross income of a self builder is on average £50,000 or more and they are typically fourth- or fifth-time movers so they understand the market and they will build.”
Connor added that the sector is being helped by the government: “We’re already in meetings with the Housing Communities Agency over land being released and the Local Authorities are releasing land up and down the country.”
