Housebuilding in the UK is changing, bringing with it new opportunities.   In 2019, we will see significant change in the industry, with an increased awareness from those living in England that they have the ‘Right to Build’.

By the end of October 2019, local planning authorities will need to have granted circa 18,000 additional planning consents for self builders in England.

For many years, the Government has recognised that there is a massive housing shortage in the UK.  It has embraced this challenge with a real desire to increase the housing stock. As part of its pledge in 2015, the Government made fundamental changes to legislation with an increased focus on self build and the emerging custom build sector.  As yet, this is something that most of the population appear to know little, if anything, about.  But, that’s all about to change.

From 1^st April 2016, Right to Build legislation grants a right to all qualifying citizens in England to register with their local authority, their desire to buy a serviced plot, with a view to building or commissioning their own home.

Local planning authorities must grant sufficient planning permissions to provide plots to meet levels of demand on the register within a 3 year period. The first period for the registers ran to the end of October 2016, with around 18,000 people signing up to the Right to Build registers in that period alone. Three years on, you can see why 2019 is such a significant milestone for change.

Custom build brings a new breed of enabling developer to the market, providing serviced plots with planning permission, a practice that is already common across the developed world, and one that will make finding a plot on which to build far easier in England, enabling more people to build their own home.

This is a specialist sector and different from traditional house purchase. Funding the project carries different parameters and requirements – responsibilities that if taken lightly, can cause major problems. Working with BuildLoan, you can avoid the pitfalls and make your customers’ property dreams a reality.

Self and custom build mortgages release funds in stages at key points during the build. When it comes to this type of mortgage, cashflow is the most important factor – making sure the funds are available at the appropriate points in the build – and stopping the project from grinding to a halt because of insufficient funds. Your client’s own available cash is another key factor when it comes to determining whether a mortgage with arrears, or advanced stage payments, is most appropriate.

The Government’s objective is for self build and custom build to account for around 30% of new housing in England. Whilst this won’t happen overnight, Right to Build will significantly change perceptions amongst local planning authorities, private landowners, developers and the general public. Right to Build demonstrates genuine commitment from the Government to get Britain building again and 2019 will be a key milestone for this change. Be aware and be part of it.

BuildLoan is the UK’s leading specialist in self build, custom build, conversion, renovation and home improvement mortgages, along with development and bridging finance. With an extensive panel of lenders providing exclusive, bespoke products specifically designed for construction projects that are exclusively available through brokers. The specialist team can provide expert guidance every step of the way, helping to find the most appropriate mortgage, reducing the risk to the client, the broker and the lender.

Visit our website here for more information.