Housing minister Grant Shapps wants to knock down the barriers that make it difficult for people to build their home as part of a self-build “revolution”.
At the Building Societies Association’s annual mortgage seminar, Shapps said a key barrier for the self-build sector is obtaining finance and said lenders are wrong to think that lending on self-build properties is risky.
The BSA has previously warned that lending on a property that has not yet been built is riskier than traditional lending and questioned lenders’ appetite to get involved.
Shapps said: “We are still very much at the bottom of the self-build league and I want to see us at the top. That is why I am working with the National Self Build Association to bring about a self-build revolution. Let’s get rid of the barriers that stand in their way.
“One of those barriers is finance. Suddenly, lenders have laboured under the misconception that backing self-build is somehow in itself a risky proposition. But Buildstore has reported there have been fewer than 50 repossessions in over 15,000 products in the last few years.”