Remove Self-Build Hurdles

The number of self-build projects completed has dropped from around 12,000 to 10,000 per annum (based on VAT claims through HMRC).

Of course, the financial crash and its impact on the construction industry since 2008 has played a big part in this downward trend, but it can’t have been helped by the inexorable rise in additional costs imposed on would-be self-builders and the lack of available development land.

I’m particularly concerned about Section 106 agreements for affordable housing and the Community Infrastructure Levy (CIL). Fortunately the government has finally started to realise that self and custom building is a viable way to give people the houses they want and in suitable locations.

While the large-scale projects make for great TV, the reality is that most prospective self-builders have a household income of around £40,000 – £50,000 per year. Their plans are usually for a modest but well-designed family home that will probably account for all of their savings and a hefty mortgage to boot.

Take a tight budget and add on Section 106 payments and it could be the difference between beginning a project or giving up before it starts because the finances just don’t stack up. The removal of these hurdles cannot come soon enough and the good news is that we are already halfway there, as a CIL exemption came into force in February.

Plots and finance

Another obstacle is finding suitable plots. Millions of people are interested in building their own home, but volume developers have such a monopoly on land allocation that it can make finding even a modest site difficult.

However, a ray of light is on the horizon; in the March 2014 Budget, the chancellor unveiled the Right to Build initiative. The idea is that potential self and custom builders can register their interest in building with their local authority (LA) who would then be obliged to identify suitable serviced plots to be sold at market rates. The government has allocated £150m to create 10,000 serviced plots via loans of up to £15,000 per plot to custom build developers. It is now seeking ‘Vanguard Councils’ who are willing to trial the concept, which can then be refined and rolled out to other LAs as a viable concept.

Now our job is to get our voices heard at a local level by getting involved in Neighbourhood Planning (NP) meetings, I shall be attending meetings in my area to promote self-build opportunities that I’ve identified locally. If you get the chance, please do the same where you live, as the more local authorities that realise there is a demand for land, the harder it will be for them to sit on potential self-build opportunities.