The question of finance is pivotal when it comes to making the decision to self build. While every self builder’s circumstances will vary (as you would expect), it can be useful to those about to undertake a project to know how others choose to finance their projects.

To better understand the self and custom build market, Homebuilding & Renovating commissioned and produced the Self & Custom Build Market Report following a comprehensive consumer survey of 500 self builders who have either just completed or were about to complete their project.

The survey asked how the participants financed their projects and revealed some noteworthy statistics.

What are the Options?

The survey asked how the participants financed their projects and revealed some noteworthy statistics. Participants chose from the following options:

The Results

You don’t have to be rich to build your own home — but it certainly helps, at least according to the survey.

56% of all self builders surveyed used their savings to fund their projects (with the average spend coming in at £311,325 for those who choose to rely on no lending at all).

29% relied on lending (21% took out a specialist self build mortgage, while 8% used another lender).

16% chose to remortgage an existing home in order to fund the project.

Clearly the high levels of self builders owning their new homes outright and being able to fund very expensive projects without a mortgage is a reflection of the average age of these self builders (which according to our survey is 52).

Those younger self builders who choose to take out a self build mortgage tend to be a little more budget conscious, spending an average of £1085/m², compared to the £1315/m² that self funders do.

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