{"id":5023582,"date":"2019-05-13T08:22:57","date_gmt":"2019-05-13T07:22:57","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=5023582"},"modified":"2023-10-10T15:11:11","modified_gmt":"2023-10-10T14:11:11","slug":"government-encourages-aspiring-self-builders","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/2019\/05\/13\/government-encourages-aspiring-self-builders\/","title":{"rendered":"Government encourages aspiring self-builders\u00a0to bolster UK housing supply"},"content":{"rendered":"
Currently,\u00a0only 8%\u00a0of new\u00a0UK\u00a0homes are custom or self-built, but government incentives have been introduced to try and boost\u00a0the number of\u00a0self and custom built homes\u00a0from 13,000 to 20,000 (35%)\u00a0in the UK\u00a0every year.<\/p>\n
With over 40,000 people registered on the governments Right to Build scheme (which\u00a0allows local authorities to look to make plots available to self-builders)\u202fsince it opened last year, evidence suggests that self-building is becoming a more recognised and viable choice for many people.<\/p>\n
Securing the capital to undertake such an expensive venture is one of the biggest challenges for aspiring\u00a0self-builders.<\/p>\n
Traditionally mortgages for self-build projects have been\u00a0difficult\u00a0to secure, but an increasing number of lenders have started to offer\u00a0mortgage products for this market.\u00a0\u00a0Since the risk to the lender is quite high, borrowers require a significant deposit of at least\u00a020\/25% and will have to plan for receiving the finances\u00a0in\u00a0stage payments,\u00a0as each phase of the build is completed.<\/p>\n
While\u00a0the higher rates for\u00a0self-build mortgages\u00a0might\u00a0initially\u00a0be off-putting, they\u00a0do\u00a0enable you to build your ideal\u00a0home without raising all the funds yourself.\u00a0Plus you\u2019re only tied in until the build is completed when you\u00a0can remortgage onto\u00a0a\u00a0standard mortgage\u00a0with a lower rate.<\/p>\n
Self-builders can\u00a0save thousands on stamp duty, as it only has to be paid on the land itself if the cost\u00a0passes \u00a3125,000\u00a0\u00a0and that increases to\u00a0\u00a3300,000 for first-time buyers.\u00a0(First-time buyers can apply for self-build mortgages too).<\/p>\n
Where you choose to self-build can make a big difference to your bank balance.\u00a0Land is considerably cheaper in certain\u00a0areas in the UK.\u00a0For example,\u00a0the average price of a plot in Liverpool\u00a0at\u00a0\u00a3817,000\u00a0\u00a0is seven times more expensive than in Manchester\u00a0which is a mere\u00a0\u00a3112,090, according to research by Insulation Express for National Custom and Self-build week.\u00a0\u00a0Their research has also identified the top ten cheapest cities in the UK for aspiring self-builders:<\/p>\n