Should you self-build your first or next home?

Did you know around 80% of homes in Austria are actually self-builds? Yet, with the same research showing that just 10% of UK properties fall under this category, it seems the dream to launch your own self-build project is just that – a dream!

Approximately 1 in 3 people in the UK are interested in building their own home according to the National Custom and Self Build Association (NaCSBA). Unfortunately, fewer than that go onto turn that dream into a reality. So, what are the advantages of self-building, what’s holding you back and why is it easier than ever to build your own home in the UK?

The benefits of self-building

There’s no doubt that making the transition from tenant to homeowner is a real adventure. Whether buying your first or next home, getting onto or moving up the property ladder guarantees one thing – compromise. While we are firm believers that property buying is a feeling and you’ll certainly know when you’ve found the one; on paper, it’s almost impossible to find a property that is 100% right for you. But, why compromise when you can self-build?

By self-building, you’re guaranteed to get what you want and more (budget providing) with a bespoke design that’s tailored to your and your family’s unique requirements. With the design of your home sorted, you can put all your efforts into finding the perfect location to tick that box also.

The cost of building a home compared to buying may surprise you too as these recent findings detail:

“Building your own home can be much cheaper than buying an existing house. If you do the work yourself, you can lower costs by up to 40%. But even hiring builders to do most of the work can save money, while project managing the build can also significantly cut costs. You pay less Stamp Duty because you are taxed on the value of the land, not the completed property. This can be worth 20% more than the costs of the land and construction.”

With the opportunity to claim back the VAT on selected materials, there are even more savings to be made when self-building, and that’s before we even consider just how rewarding it is to build your dream property!

Things to consider when going custom

Self-building doesn’t come without its challenges – we’ve seen enough episodes of Grand Designs to know that! Without the right management, costs can quickly spiral leaving you out of funds and with a half-finished property. Finding the right plot and getting the necessary permissions to proceed with your build is also costly and time consuming.

The risks and stress of building your own home can be hard for many individuals to handle. But, with competent and experienced help from professionals, you can look forward to moving into your dream property, overcoming these challenges and staying bang on budget.

How the Help to Build scheme could help

See more pros than cons when considering building your own home? Then your next step should be reading up on the government’s Help to Build scheme.

As an initiative that aims to make “building your own home more affordable”, the Help to Build scheme is an equity loan provided by the Homes and Communities Agency. It’s available to those interested in self-building in England, and is accessible to first time buyers, repeat purchasers and self-building newbies. The loan covers a proportion (5 to 20% to be exact or up to 40% when self-building in London) of the estimated upfront costs of buying the land you intend to build the property on as well as construction costs.

Once your home is built, the loan is paid to your lender to lower the amount of repayment mortgage you need. The equity loan is interest-free for the first five years. Even with government help, you get to decide on the design, layout and location of your self-build.

You can also use the Help to Build loan to fund part of an airspace development, property conversion (from commercial to residential), shell build customisation or demolition. It cannot be used to build multiple properties, make home improvements or construct a second home.

Looking for a mortgage for your self-build? We can help! Contact our advisors today to get started.