£150 million for Help to Build equity loan scheme

£150 million for Help to Build equity loan scheme

10:58 AM, 24th June 2022, About 2 months ago

Text Size

Backed by £150 million of government funding, Help to Build will enable people to overcome prohibitive mortgage costs to build a home that is tailored to their needs and in a community of their choice, with just a 5% deposit towards land and building costs.

Help to Build will open for applications on Monday, making self and custom-designed homes an option for those who don’t have Grand Designs size budgets. Most people are currently priced out of this option because it can require huge sums up front – the average for a self and custom build deposit is around 25% of land and building costs.

The scheme can help people with specific living requirements, creating homes that are tailored to their needs, including those with disabilities or those who live with large families or elderly relatives.

Help to Build is also part of the government’s plan to boost the UK’s underdeveloped self and custom build sector, which will create jobs, increase the number of new homes and help grow the economy. The government has today published its response to Richard Bacon MP’s independent review of scaling up self and custom housebuilding, commissioned by the Prime Minister. It sets out how the sector could deliver 30,000-40,000 new homes a year.

Housing Minister Rt Hon Stuart Andrew MP said: “Through the Help to Build scheme we will help thousands more people onto the property ladder by giving them the opportunity to build homes that are perfectly tailored to their needs and in the communities they want to live in.

“This innovative scheme will build on our work to break down the barriers to homeownership, as well as creating new jobs, supporting the construction industry and kickstarting a self and custom build revolution.”

Richard Bacon MP for South Norfolk, said: “I am very pleased by the government’s warm response to my Review. The government recognises the crucial role which custom and self-build housing can play in addressing the nation’s housing challenges, including delivering more affordable housing.

“Making it easier for people to build or commission their own homes helps to promote a more diverse housing market with more real choice and control for consumers.

“There is clear evidence that getting people more involved in decisions about housing helps to deliver houses that are better designed and better built, which are greener and cost less to run and which communities are happier to see built. I look forward to working with the government to progress this important agenda”.

Help to Build will help families bridge the gap between their deposit and the cost of building material and land, allowing applicants to borrow between 5% and 20% of their costs across England – and up to 40% in London. Total build costs cannot be over £600,000, or £400,000 if the land is already owned, and applicants must live in the property as a primary home.

The government has also today set out the measures that it will take forward from the Bacon Review to boost the sector. These include:

  • A specialist unit within Homes England to bring forward more self and custom build plots on regeneration projects across the country.
  • Bringing forward legislation through the Levelling Up and Regeneration Bill to promote self and custom building, including the review of the National Planning Policy Framework (NPPF).
  • The Modern Methods of Construction Task Force (MMC) will promote the use of modular factory-built to boost custom homebuilding.


Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now