Would you consider building your own home?

Posted: 10/05/2012

Many people believe that only the wealthy can afford to live in a self built home but Housing Minister Grant Shapps has declared his desire to see more self built homes popping up across the country.

You may be thinking that it would be near to impossible to secure a mortgage for a self built property, considering how difficult it is to secure a standard mortgage in the current climate. However, the National Self Build Association predicts a rise of 141% in mortgage availability for self builders.

Local authorities are being urged to facilitate the level of demand for self build plots. There are some lenders that can also put self builders in contact with agents that are selling plots of land.

But is a self built home more affordable than purchasing a ‘ready made’ property? According to the National Self Build Association, a three bedroom home could be built within a budget of £150,000, but if you were to purchase a three bedroom house, it would cost an average of £232,000. Another plus side to a self built property is VAT can be claimed back on most of the building materials used and the largest saving would come from the fact that you would only have to pay stamp duty on the cost of the land.

A hurdle that can sometimes deter self builders is the struggle to secure planning permission. You may have to compromise your dream location for your property but there is a lot of help out there to take advantage of. Local planning departments can prepare maps which show ideal locations for new developments and specialist agencies can also collect information from estate agents for you. This would be a useful starting point if you’re considering building your own property.

After reading the information above, would you consider building your own home? If so, the Government have set up a website that acts as a guide for any potential self builders - www.selfbuildportal.org.uk.

Amanda McGovern, Pali Ltd

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(0) Comments mortgage, property, self build, Government

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