Building Holmes
The self-build mortgage market is at last beginning to get more competitive with a larger number of active lenders and a wider range of products than has been available in recent years. Terms are also becoming more flexible, especially on loan to value for land and build.
Interest rates are also historically low - although there is a premium on self-build funding during the construction phase, after which it is usually possible to remortgage to a more competitive rate. For a full table of 26 current lenders follow http://ow.ly/7JtrK
For anyone with cash or able to raise funds, there has never been a better time to find a building plot. Rather than snapping up every opportunity and landbanking - with a guarantee that property values will always exceed interest rates, many developers are disposing of sites, or unable to bid on sites that come to market due to a lack of development funding. This is creating great opportunities for self-builders.
My own recent search of www.plotfinder.net the UK's leading database of land and renovation opportunities came up 27 potential projects - a few years ago it was difficult to find anything.
Meanwhile, many developers are turning to contracting to remain in business and with less building work around generally, the market is very competitive and margins on contracting are being reduced.
The background of high inflation means that materials costs are unfortunately still rising, but labour costs are level and in some areas falling. If you are looking for a builder who wants to find work and may be willing to travel try My Building Project Builder Network http://ow.ly/7JtHM
The outlook for the property market remains uncertain in the short term - the real risk is of a second credit squeeze should the European sovereign debt crisis not be resolved, but historically low levels of housebuilding, combined with gradually improving affordability for first time buyers are likely to underpin UK house prices in the future, so for someone looking to create a home as opposed to speculating on house prices, the outlook is positive.
Previous blog posts ...
Just got back from a very busy Scottish Homebuilding & Renovating Show at the SECC. One of the recurring questions was about glass extensions and how to meet the building standards (as the building regulations are called in Scotland.)
Several frustrated readers who want to build extensions using large areas of glazing are being told by their architects that it cannot be done because the total glazed area of an extension cannot exceed 25% of the new floor area.
read moreExcluding self-build projects (and small sites) from the Community Infrastructure Levy (CIL) in tomorrow's budget would provide a boost to self-build and the construction sector. The Chancellor may even scrap the CIL altogether and replace it with a tax on planning gain, which is much fairer than taxing development gain. The Community Infrastructure Levy (CIL) is a local tax on new development raised to provide funds towards local infrastructure projects such as roads and schools, which are required to meet the needs of the residents of large scale new housing developments. read more
VAT at 20% provides a very big incentive to home improvers to use a non VAT registered builder, or to pay in cash, in order to avoid the tax. This costs the treasury, but can also play into the hands of cowboy builders. Meanwhile legitimate builders cannot compete on equal terms, because they are at least 20% more expensive, and probably more if they are doing everything by the books. read more
A few additions to this week's budget could provide a boost for self-builders and renovators and help kickstart the economy. A Boost to the Supply of Single Building Plots Offering landowners an incentive to sell-off individual serviced plots by offering tax breaks could change the profile of the housebuilding market in the UK, resulting in a significant increase in one-off, sustainable, individual self-build homes, whilst also improving affordability. This could provide an important boost to the economy. read more
Planning is politics, and whilst most people agree we need more and better quality housing, nobody actually wants that housing on their own doorstep. As a result, very little new housing is actually approved and even less is built. As long as planning remains political, and bureaucracy can be used to prevent or delay development, there will be no increase in housebuilding. This is why the Government are proposing a shake up of the planning system in the budget next week. read more
With so many seemingly contradictory reports and projections for the direction of UK house prices coming out recently it's very difficult to understand what is really going on. Here I try to shed some light on how figures for the same thing can vary so wildly. Today Nationwide BS released a report that 'prices climbed by a seasonally adjusted 0.3 percent month-on-month, defying economists' forecasts for a fall of 0.3 percent following January's 0.1 percent drop.' read more
Modular building systems - using standardised components - have been around since the Romans invented clay bricks, and maybe longer. Various attempts have been made since to create larger format modular components to speed up the whole process of homebuilding, including giant lightweight concrete blocks, timber frame panels - and whole timber framed walls. None has yet really taken off in a big way and superseded brick and block. read more
Following my last blog I did a little more research and discovered that an unauthorised change of use to a single dwelling is immune from enforcement by a local planning authority after 4 years and not 10. Any legal or planning experts care to comment on this? This results from case law which you can read about below. http://www.propertylawuk.net/planningenforcementuser.html read more
Every year I meet a few self-builders who have managed to build their dream home on a site where it defies belief that planning was granted, often in the open countryside, or by a river or in some other beautiful remote spot. Often they have achieved their dream thanks to a loophole in the planning system known as the 'four year rule', whereby a breach of planning policy becomes immune from enforcement action by the local authority after a period of four years (ten years for a change of use). read more
Michael Holmes
Michael Holmes is the Editor-in-Chief of Homebuilding & Renovating magazine and a presenter of property TV shows. He has self-built three times and renovated over 25 houses, and is the author of Renovating for Profit.
Meet Michael Holmes at the Homebuilding & Renovating Shows.
Follow Michael on Twitter @holmesmike.


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The economy has been to
The economy has been to downturns in many business industries like on real estate.Jobs cut and people got affected but we can see how working together means standing up.I think home building can still be done but not to the extent of high consumption.
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