Thousands of families helped build their own homes

  • Launch of assistance in setting up an equity loan scheme, with 5% deposits covered by £150m in government funding

  • The scheme will boost the DIY and customization sector, support SME builders and create new jobs

  • It is the latest government move to help families move up the real estate ladder – with more than 765,000 households helped to acquire their own home since 2010

Thousands of people in England will be supported up the property ladder and given the opportunity to build their own homes, with the launch of the government’s Help to Build programme, the Department for Leveling Up, Housing and Communities announced today (June 24, 2022) ) announced.

Backed by £150 million in government funding, Help to Build enables people to overcome prohibitive mortgage costs to build a home tailored to their needs and in a community of their choice, with just a 5% down payment for land. and construction costs.

Help to Build will open for applications Monday, making self- and custom-designed homes an option for those on a budget. Most people are currently priced for this option because it requires huge upfront costs – the average for a down payment for self and custom build is about 25% of the land and construction costs.

Help to Build helps to raise the level of communities by supporting young people and families in acquiring their own homes in the places where they want to live. It builds on the success of other government programs, including Help to Buy and Right to Buy, which have helped more than 765,000 people buy their own homes and will help build one million homes by the end of the year. this parliament.

The scheme can help people with specific housing needs by creating homes tailored to their needs, including those with disabilities or those living with large families or elderly relatives.

Help to Build is also part of the government’s plan to boost the UK’s underdeveloped self- and bespoke construction sector, which will create jobs, increase the number of new homes and help the economy grow. The government today released its response to Richard Bacon MP’s independent assessment of scaling self and custom housing, commissioned by the Prime Minister. It explains how the sector can deliver 30,000-40,000 new homes annually.

Housing Minister Rt Hon Stuart Andrew MP said:

Through the Help to Build program, we help thousands of people move up the real estate ladder by giving them the opportunity to build homes that are perfectly tailored to their needs and the communities they want to live in.

This innovative program builds on our work to break down the barriers to home ownership, create new jobs, support the construction industry and spark a self and customization revolution.

Richard Bacon MP for South Norfolk, said:

I am very pleased with the warm response from the Government to my Review. The government recognizes the critical role custom-built and self-built homes can play in addressing the country’s housing challenges, including providing more affordable housing.

Making it easier for people to build or move into their own homes fosters a more diverse housing market with greater choice and control for consumers.

There is clear evidence that involving more people in housing decisions helps deliver homes that are better designed and built, that are greener and cost less to run, and that communities are happier when built. I look forward to working with the government to further develop this important agenda.”

Help to Build helps families bridge the gap between their deposit and the cost of building material and land, allowing applicants to borrow between 5% and 20% of their costs across England – and up to 40% in London. The total construction cost must not exceed £600,000, or £400,000 if the land is already owned, and applicants must live in the property as a primary residence.

The government also set out today the measures it will take from the Bacon Review to give the sector a boost. Among which:

  • A specialist unit within Homes England to bring forward more self and custom built plots for regeneration projects across the country.

  • Bringing forward legislation through the Leveling and Regeneration Act to promote homebuilding and customization, including the revision of the National Planning Policy Framework (NPPF).

  • The Modern Methods of Construction Task Force (MMC) will promote the use of modular factory-built structures to encourage custom housing construction.

Andrew Baddeley-Chappell, CEO of NaCSBA said:

There should be more choice for anyone looking to own a home, not just those with the biggest wallets. Help to Build is the key to opening up customization and DIY to more people with sound plans and limited deposits. It will enable them to access a home that better suits their wants and needs, enriches their lives and that of their community and is better for the environment.

Andrew Craddock, Chief Executive of Darlington Building Society said:

I am delighted that Darlington Building Society is the first lender to offer mortgages under the government’s Help to Build scheme.

Self-build isn’t reserved for the wealthy, and Help to Build makes it more practical and accessible than ever for people to build their dream home. This scheme also offers opportunities for starters. It is a fantastic example of the market moving with the times and the changing wants and needs of people.

More information

The National Custom and Self Build Association (NaCSBA) ‘Right to Build Task Force’ has been established to help local authorities, community groups and other organizations deliver self and custom built housing projects in the UK. Initially funded by the Nationwide Foundation, it has been funded by the government since 2020 to provide expertise and support to local authorities on how to implement the Right to Build and how to ensure self and bespoke delivery. Today we have confirmed a further £600,000 in funding for the Task Force so that it can continue to support local authorities in delivering self and custom builds until 2024/25.

When developing the scheme with Homes England, we used the model proposed by the National Custom and Self Build Association (NaCSBA) as a starting point. We consulted with NaCSBA and reached out to lenders, brokers and insurers in developing the scheme. Further details of the scheme have been published today.

To learn more about the scheme and how to apply, visit the OwnYourHome website

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