Self Build Market Commentary September 2009

Latest Self Build Market Report in conjunction with

2009 is proving to be one of the best year's to self build with enquiries up at BuildStore by 39%. This is due to a fall in plot prices, increased labour availability and negotiations to purchase materials. New lenders who are looking for more mortgage business are starting offering Self Builders mortgages via BuildStore.

New lenders include Bath, Melton Mowbray Building Society and Ipswich. All offer mortgages to fund land and materials purchase between 75 and 95% of the costs. Accelerator mortgages mean you can live in your own home and build your new one at the same time!

Currently there are over 9,000 building opportunities listed, with an average of 550 new plots and building opportunities are being added to BuildStore’s Plotsearch database each month.

The average plot price in June 2009 was 20% lower than December 2008, costing £195,171 instead of £243,584. Over 60% of plots on the Plotsearch database can be bought without paying any stamp duty at all, saving budding self builders a fortune. 

And it’s not just supply that’s increasing, demand for self builders trying to find a plot is going up as twice as many people subscribe to their Plot Finding database in the six months of 2009 versus July to December 2008 and enquiries for specialist finance increased by 39% versus the same time last year.

Even smart, forward thinking lenders are starting to realise the potential from backing self build, with Bath Building Society launching a mortgage that lends 95% of the cost of the land or building to be developed, and 95% of building or renovation costs. The caveat being that once finished, the final loan to value (LTV) does not exceed 80%.

Better still, unlike the people who consistently run out of money on Build a New Life in the Country, Grand Designs or Property Ladder, to make the project run more smoothly, money is released during to project in advance of each stage of construction providing the homebuilder with much needed cashflow to buy materials and pay builders and tradesmen.

Need more information? Contact us on 0845 838 1763.

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