nnounced a number of proposed innovations nce or is it more hot air from the coalition? month: is there any substance to the coalition’s self-build proposals?


Despite a large aspirant market, self-build housing in the UK is relatively niche, whereas in other countries, particularly in mainland Europe, it is a more mainstream housing route providing up to 60% of new homes every year. The Government’s pledge to support the sector and make


it more accessible should help to kick-start a new revolution of home building. Issues the Government will have to tackle include what it calls a “bureaucratic and complex” planning system; the availability of land and finance, and availability of support and guidance for self-builders. The current planning system can be overwhelming for self-


builders developing a single dwelling plot, who have to follow the same process as a developer of a large housing estate. The Government will also need to address the availability of land for self-builders. At any one time, there are around 10,000 building opportunities available for sale in the UK, but more could be done to make other plots and sites available for self build purposes. Despite the low loan-to-value, low risk and profitable margins


that self build mortgages offer lenders, there is currently a shortage of self-build finance. BuildStore believes that by tackling some of the issues preventing access to self-build, and developing a planning system which views self-build more favourably, lenders will be encouraged back into the market. BuildStore has been in consultation with the Department of


Communities & Local Government, to represent the industry view on self-build finance and, in-line with their pledge to address the availability of finance, Mortgage Indemnity Guarantee and Build Out policy cover is now available on both advance and arrears self build mortgages for lenders who partner with BuildStore, to further reduce their exposure to risk. Given the current housing landscape, we believe the policy


is hugely important for the industry, and removing some of the current barriers to self build will allow the market to grow closer to its full potential. The infrastructure and support network already exist to deliver a much larger and more vibrant self-build market, and a comprehensive Government policy will go a long way to make this a reality.


Raymond Connor, chief executive, Buildstore


From a so-called nation of shopkeepers, Grant Shapps is encouraging us to turn into a nation of builders. His plans aim to make self build an easier proposition for


those building their own dream home. This is news that I’m sure will be welcomed in many different sectors. If successful, it could provide stimulus to many different industries and professions across the UK. For many, the dream of building their own property is ruined


by the fear of the practical difficulties involved. People worry that their self build project will be the same as some of those on programmes like Grand Designs, where self builders devote their entire lives to the cause and suffer all manner of heartache along the way. However this is not the reality for the vast majority of people


looking to build their own home. A huge amount of progress has already been made in the self build market and mortgage providers, including BM Solutions, now offer flexible products, releasing the funds required at each step along the way and keeping the costs down as much as possible for borrowers. There is also a significant amount of help available around


the actual logistics of the project and self builders can quickly and easily be put in touch with architects, builders, contracts and project managers. The focus that Mr Shapps is putting on self build will, at least,


help to educate people to the realities of the market and help many see that building their own property is not only possible, but could be a cost effective way of owning the dream house. The use of local architects, tradesmen and suppliers during


the self build process also drives benefits for surrounding communities, while the promise to make the planning process easier and quicker, will be great news to everybody concerned. We have to be realistic that self-build is only part of a


solution, rather than the solution. But, while the self build market may not be everyone’s cup of tea, the more people understand what it has to offer, the more of a role it could play. This will help boost self build’s part in housing market and general economic recovery.


Phil Rickards, head of sales, BM Solutions


sense. Do you want to be a part of the next Bigger Issue? Email nia@thepublishinggroup.co.uk mortGaGe introducer FEBRUARY 2011 21


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