The mortgage market is indeed in the doldrums here at the end of 2008, but you can turn this to your advantage – now could be the ideal time for a self-build project. There are several reasons why.
Firstly, land. There are more plots available now than at any time in the past decade as builders and developers sell off parts of their land banks to reduce their borrowing, causing plot costs to go down.
Secondly, labour. Getting tradesmen has been difficult over the last few years but now there is a plentiful supply because the major housebuilders have stopped new builds. Not only that but they are keen for work and are therefore putting in competitive estimates.
Thirdly, money. While mortgages have dried up in some areas of the market, lenders are still keen to lend to self-builders as they are seen as mature borrowers who end up with very low loans to value at the end of their project. Indeed, the Hanley Economic Building Society has just launched a scheme for self-builders exclusively through BuildStore because they want access to quality borrowers.
And finally, house prices. There are regular reports that houses are dropping in value.However, most experts foresee the market recovering over the next two years. This is perfect for self-builders who want to stay in their current house while building their new one, as by the time the project is finished and they move in to the new house, the housing market may have returned to some level of normality.