Today (24 June 2022), the government has announced a new ‘Help to Build’ equity loan scheme, which will help to support people onto the property ladder and build their own home
The Help to Build scheme is backed by £150m of government funding, and will help 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.
Open for applications from Monday (27 June), Help to Build aims to level up communities by supporting young people and families into homeownership.
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 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.
Breaking down the barriers to home ownership
Housing Minister Stuart Andrew commented: “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.”
‘Custom and self-build housing can play a role in addressing the nation’s housing challenge’
Richard Bacon, for South Norfolk, added: “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.
The government has also today set out the measures that it will take forward to boost the sector:
- 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.
The UK is ‘finally’ moving in the right direction
Karen Curtin, managing director at Graven Hill commented: “The Help to Build scheme is a dream come true for many would-be self-builders, and we’re in full support of the initiative. With applications now open, the UK is finally moving in the right direction as we continue to revolutionise the housing market. Gone are the days of self and custom building being for the few – we are thrilled to see it become an option for the many.
“Self and custom building have always been popular at Graven Hill, and we expect to see interest continue to increase as a result of the scheme. In the current climate, the financial support that Help to Build will provide has never been more welcome.”
