Housing minister Grant Shapps has announced he is launching a £30m fund to provide short-term finance for self-build projects in a bid to double the size of the self-build industry.
The fund will provide short-term finance to help unlock projects where groups of self-build homes are constructed at the same time.
The Government says these projects have been held back in the UK because of reluctance by lenders to provide finance. Self-build groups will be able to bid for part of the £30m pot to help fund land acquisition and early development costs.
Shapps says he is writing to key players in the mortgage market, highlighting the business case for lending to self-builders.
He says: “Self-build is good news for the economy, so I am writing to lenders and encouraging them to use their own industry’s toolkit to see how they can lend to those who want to build their own homes and expand into this growing market.”
FSC Investment Services managing director Frank Cochran says: “£30m is a drop in the ocean. With so many repossessed properties, why would anyone want to build a new one?”