7% of new homes in the UK are self-build

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by Kay Murchie

Thousands of British families are now choosing to build a new home from scratch. Research by the Joseph Rowntree Foundation, the housing think-tank, illustrate that approximately 7% of new homes in the UK are built from scratch. The majority are detached houses with 4 bedrooms and are situated in the countryside or built-up areas.

Should you choose this option, it is important to know the following:-

1. Find the right plot
Finding the right plot may be more difficult than you first think. It can take many years to find the right location. Some may consider purchasing a plot of land with an old house on it and knocking it down to build a new property.

Websites can assist you when searching for a piece of land. plotsearch.co.uk provides a list of nearly 6,000 plots and restoration projects. You should expect to shell out 35% of your total building costs on land.

2. Architect-design or kit house
The next step is to choose either a kit house or an architect-designed property. The latter could cost a small fortune in architects’ fees. Kits can cost around £125,000 before building costs.

3. Planning permission
Many mortgage lenders will not offer any money without planning permission so planning ahead is essential.

Comprehensive planning permission can wait until you are closer to building the house, however lenders will require all the paperwork before releasing all of the loan.

4. Know your budget
Self-build mortgages are different to standard mortgages, self-build loans are released in stages to cover different phases of the construction. Your mortgage lender will want to inspect each stage as it is completed. A contingency fund is advisable for any unforeseen costs.

Self-builds regularly go over budget so 15-20% of your estimated costs should be sufficient. Theft, vandalism or personal injury claims could occur during construction so insurance is necessary.

5. Building the house
Should you choose a kit house, the manufacturers will suggest local builders that they have worked with previously. However, the Federation of Master Buildings, fmb.org.uk, will provide reputable contacts. Obtaining quotes with start and completion dates are essential.

House design computer packages are now available at selfbuild.co.uk, these could help you select different house techniques and interest design.