Falling prices to fuel self-build home boom
Monday, 24 January 2011 12:12 PM
As UK house and land prices slide, there is said to be a growing interest in self-build homes, which allow owners greater control over the ultimate cost of their new property.
Proposals outlined by the government this month, which aim to give local communities more power in decisions concerning new housing developments, are expected to accelerate the trend.
Housing minister Grant Shapps is campaigning for planning rules to be relaxed, arguing that the option to build your own home should be open to anyone, not just wealthier households.
According to ThisIsMoney.co.uk, the average price of suitable plots has fallen from almost £200,000 in 2007 to around £125,000 at present.
However, while thousands dream of building their ideal property from scratch, a difficult mortgage market is proving a major stumbling block, it explained.
Jaclyn Thorburn, from self-build specialist BuildStore, told the website that Shapps' proposals could bring a welcome boost to the market.
"Pre-credit crunch, there were 30 lenders in the self-build market. That has fallen to 17. We're hopeful other lenders will come back to the market in 2011."
She went on to say that BuildStore, which provides mortgages for self-build, renovation and conversion projects, has signed up six new lenders in the past year.
