Housing minister Mark Prisk has urged lenders to embrace the self-build market as the Government wants the sector to double over the next decade.
According to statistics from the Department of Communities and Local Government, around 10,000 of the 100,000 new homes built each year are self-builds.
But lenders can be sceptical about lending on this type of property as they have little security if the project is not completed. Lenders that offer self-build deals include Leeds Building Society, Lloyds TSB, Cumberland Building Society and Progressive Building Society.
Speaking at the Council of Mortgage Lender’s annual conference last week, Prisk said: “To realise our ambition to double the size of this sector over the next decade, we are going to need fresh thinking from builders, designers and yourselves [lenders]. Some lenders have already responded. We have seen in the last year the number of self-build products rise from 14 to 24 and many independent projections are anticipating an increase of lending in this area by 140 per cent in the near future.
“I am not pretending self-build is the sole answer to the housing crisis we face but it is a potential element. And it is an opportunity that I would like perhaps to encourage you to think of incorporating, as you look forward, and indeed seek to be different.”