Where Do You Live Whilst Self-building?

1. Stay Where You Are
Ideally, you would continue to live in your familiar, comfortable old home, enjoying the distinct separation from a stressful building site; but in most cases the house will have to be sold to release funds. If you do decide to live in your current home, the running costs of two properties – particularly in later stages – will be very expensive, along with the added uncertainty of having to sell it at the end of the project. Also consider that if you don’t live close to the site, the time taken to travel to and from could make regular visits difficult.

However, there is a tax dispensation that enables you to live in one house whilst building another without having to pay Capital Gains Tax (CGT) on either for up to three years.

2. Rent a Property
Most self-builders sell their previous home before self-building, which frees up capital and means they don’t get stuck paying two mortgages. You can also move nearer to the site and allow your family to settle into the new area. The downside of renting is that it is ‘dead’ money and you may only be able to live there for six- or 12-month contract periods that might not tie in with your build schedule. You can, however, attempt to negotiate flexibility with the landlord — who could extend the contract on a monthly basis.

If you rent an unfurnished property you can use your old furniture rather than pay to store it.

3. Live with the Family
If you have family – or good friends – willing to put you up for at least part of the project, it is a real budget boon. Your ‘landlord’ should be eligible for the Government’s ‘Rent a Room’ scheme, where they can receive up to £4,250 taxfree rent a year.

4. Buy a Caravan
Buying a caravan and selling it on afterwards means you can be on site at all times, and is usually the cheapest – albeit hardest – option, with prices starting at less than £3,000 for a second-hand model (although you will have to pay to put any furniture into storage). If you have a family, ensure they are willing to live in cramped, difficult conditions for a year-plus. There are several suppliers who service self-builders: they will advise you about services and planning permission, though the latter is rarely required.

5. Build an Annexe
It is possible to build a large permanent mobile home in your garden to live in, which you can later use as an annexe. An appealing option when they can look as good as this three bedroom ‘home’ from minihomes.co.uk, which can be supplied as a shell to finish off for around £25,000 (turnkey from £55,000). Not bad considering a decent-sized secondhand temporary mobile home can cost over £15,000. In most cases you won’t need planning permission but, as Guy Little from minihomes.co.uk says, “We do recommend getting a Certificate of Lawfulness, which will be granted if the home is sited outside of Conservation Areas and within the actual garden/curtilage of a house and is used in conjunction with the main residence.”

Further reading:

• Where to Start with Your Self build
• A Self-builder Who Lived On Site
• Read About Other Self-builders' Experiences in the Builders' Blogs
• Discuss Your Self-build with Others in the Homebuilding Discussion Forum