According to the Building Societies Association (BSA), the self-build market, which incorporates people building their own homes, kit or packaged homes, developer-built one-off homes and community collaborations where a group of self-builders buy a larger plot of land, generates £3bn a year for the UK economy.
Despite the growth of this sector in recent years, the BSA points out that the UK still trails well behind other European countries when it comes to self-build.
Around 80% of Austrian homes and 60% of French and German properties are self-built.
The British Government has pledged to work with industry to double the UK’s self-build sector in the next decade, adding 100,000 new homes and supporting an extra 50,000 jobs, directly and indirectly.
Housing Minister, Grant Shapps MP said: “Self builders built more homes last year than many of the major developers in this country. But I want to see more of this, see the industry fulfil its potential and double in size to ensure anyone wanting to build their own home has access to the help and information they need.
“And with as many as 100,000 aspiring self-builders looking for suitable plots, this presents an amazing business opportunity, not least for lenders. That’s why I’m today backing the Building Societies Association’s new toolkit and urging lenders to do what they can to back this growing industry.
“With the numbers of mortgages for self-build set to increase by a massive 141 per cent, I will be watching with interest to see how further support from lending companies can help spur on this self-build revolution whose time has most definitely come.”
BSA head of mortgage policy, Paul Broadhead, added: “Many building societies began life by helping local people fund the building of their homes, so self-build fits well with the mutual lending model. We hope that the lender toolkit will help to promote this more innovative area of lending to more providers.
“The consumer demand is there and the need for additional housing is evident. On top of this the Government has committed to maximise access for self-builders to land which is being released as part of its accelerated land-disposals programme and to require local authorities to take positive steps to facilitate this form of building. The barriers to self-build are steadily coming down.”
