A new “help-to-build” Mortgage Scheme has been announced by the Government in the last week which is designed to help encourage people to build their own homes rather than buy existing ones. Included in this scheme is funding of £150 million to help kick-start the process.
Take a look at a chunk of the press release issued by the government below:
“New plans supported by over £150 million in new government funding will make it easier and more affordable for people to build their own homes, the Housing Secretary Robert Jenrick has announced today (24 April 2021).
The ‘Help to Build’ scheme will ensure that self and custom home building can become a realistic option to get onto the housing ladder through lower deposit mortgages.
Lowering the required deposit will free up capital, so people can build the home that they want and need whether it’s a commissioned, made to order home, or a new design from scratch. The scheme will provide an equity loan on the completed home, similar to the Help to Buy scheme.
Made to order homes allow people to customise the home they want based on existing designs. This could include more office space, or a particular design to support a family’s requirements including for disabled or older people.
Self and custom build could deliver 30-40,000 new homes a year: a significant contribution to the country’s housebuilding ambitions.
The scheme is part of the government’s wider Plan for Jobs as the new plans will also benefit small building firms. SME builders account for 1 in 10 new homes and the scheme will help scale up the number of self and custom build homes built every year.
Housing Secretary Rt Hon Robert Jenrick MP said:
Building your own home shouldn’t be the preserve of a small number of people, but a mainstream, realistic and affordable option for people across the country. That’s why we are making it easier and more affordable – backed by over £150 million new funding from the government.
The scheme we have launched today will help the thousands of people who’d like to build their own home but who’ve not yet considered it or previously ruled it out.
Our plans will help get more people on to the housing ladder, ensure homes suit people’s needs like home working or caring for relatives, whilst providing an important boost to small builders and businesses too.
The Prime Minister has commissioned Richard Bacon MP to lead a review on how we can scale up the delivery of self and custom build homes. The review will report its findings and recommendations in the summer.”
A start date has not been given yet for the scheme.
The idea of this new scheme is again very promising much like the Green Homes Grant. Only time will tell to see if this scheme is implemented correctly or fails like its predecessor.
However, we will say that the idea of this scheme is very promising for aspiring homeowners, small builders and home improvement companies as it will lead to more opportunities for everyone which can only be a good thing after a tough year.
We will keep you updated on this front as more information comes to light. In the meantime, feel free to check out our website to help discover what your next home improvement project may be.
Have a great week.
From the Countrywide Windows Team.