Building Societies Association publishes toolkit for self-build market

Building Societies Association publishes toolkit for self-build market

The BSA has published a toolkit to provide information to encourage more lenders to offer mortgage finance to self-build projects.  
It claims that one in 10 new homes built in the UK are self-build projects, which generates £3 billion every year for the UK economy.  It estimates that self-build properties accounted for two out of every three one-off homes built in the UK in 2010-11.  
The Government has pledged in its housing strategy to double the size of the self-build sector.  This would add up to 100,000 houses.
Mutual Societies are leading the way in providing finance for those who want to build their own home.  The toolkit which has been launched, ‘Lending Information for Self Build in the UK’ provides information on the methods of self build, the mitigation of risk and capital treatment of loans.  It can be downloaded here
Paul Broadhead, BSA Head of Mortgage policy commented:
"Many building societies began life by helping local people fund the building of their homes, so self-build fits well with the mutual lending model. We hope that the lender toolkit will help to promote this more innovative area of lending to more providers.  
"The consumer demand is there and the need for additional housing is evident.  On top of this the Government has committed to maximise access for self-builders to land which is being released as part of its accelerated land-disposals programme and to require local authorities to take positive steps to facilitate this form of building.  The barriers to self-build are steadily coming down."
Grant Shapps, Housing Minister added:
"Self builders built more homes last year than many of the major developers in this country.  But I want to see more of this, see the industry fulfil its potential and double in size to ensure anyone wanting to build their own home has access to the help and information they need.
"And with as many as 100,000 aspiring self-builders looking for suitable plots, this presents an amazing business opportunity, not least for lenders.  That’s why I’m today backing the Building Societies Association’s new toolkit and urging lenders to do what they can to back this growing industry.”
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