20,000 Britons make that dream a reality every year. A self build project can involve a substantial degree of planning, time and hard work, but the rewards can be enormous, both financially and emotionally.

One of the major benefits of self build is that everything is done at cost price, so there is no built-in profit to pay for. Therefore, when construction is finally complete, the value of the property typically exceeds the total build cost by around 25%-35%, securing an impressive instant equity in the new home.

Until relatively recently, the property market was climbing at a phenomenal rate, with an increasing volume of mortgage lending, housebuilding and housing transactions. These ‘good’ times have meant ‘bad’ times for self builders; there is generally a shortage of available plots of land for self builders, and the high land values price some self builders out of the market. During a time of increased development and housebuilding, self builders are often outbid by developers.

However, with the slowdown in the property market and the collapse of the private housebuilding industry, land is available in quantities and at a price that has not been seen in years. With the help of plot-finding agencies, such as PlotSearch, self builders now have access to around 8,000 building opportunities, but they have to move fast – good plots are being snapped up quickly. PlotSearch has reported that its enquiries for plots are still high, and have increased even more in 2010, as more people recognise self build as a way to climb the property ladder. The PlotSearch database has grown significantly in the last couple of years, from around 5,000 development opportunities to over 8,000, and with that, prices have also dropped, making it an ideal time for self builders to grab a bargain. Plots which in early 2008 were priced around £160,000 can now be snapped up for less than £125 – a 25% drop, and below the threshold for stamp duty tax.

BuildStore, the UK’s self build expert and service provider, is keen to help housebuilders, landowner and local authorities realise the potential of the self build market, and work with them to help sell their land assets as serviced plots direct to self builders.

Raymond Connor, Chief Executive of BuildStore, explains: “We have seen a steady increase in the number of people building their own homes in recent years, and even throughout the recession, our levels of enquiries for self build land and finance remain buoyant. Budding self builders who have been waiting in the wings for months are now making the most of the increased supply of cheaper land and availability of self build finance. So, for anyone who has considered the idea of self build, now is the time to act – good plots at low prices won’t be around for long.”

Another important consideration for building your own home is how you will fund it. Building a home is not the same as buying a house, and mortgages for individual homebuilders are not like ‘normal’ house purchase mortgages. There are lenders in the market who offer specialist mortgages for self builders, so consult a specialist advisor to help you get the right funding solution to fit your circumstances.

With any self build project, cash-flow is king and time is money. If you are unable to buy the materials you need, when you need them, or pay your builders on time, and if you can’t pay your contractors, they will quickly move on to another job. Having the cash to pay your bills and buy materials will avoid these delays. If you don’t have a large amount of cash sitting in your bank before you start, then an advance stage payment mortgage will give you the positive cash-flow you need.

BuildStore’s exclusive Accelerator advance payment mortgage provides up to 95% of land costs in advance, and up to 95% of build costs, released in stages, at the start of each build stage. This also means that you won’t need to sell your existing house to release equity to fund your project – so you can live in your home throughout the project, saving you money on temporary accommodation. On average, self build borrowers end up with a 60% loan-to-value ratio at the end of their build, which gives them an impressive chunk of equity.


For more information on building your own home, visit www.buildstore.co.uk