Housing minister Grant Shapps is writing to lenders to encourage them to offer more self-build deals.
Last week the minister pledged £30m to fund short-term finance for self-build projects.
Self-build groups will now be able to bid for a slice of the cash to partfund land acquisition and early development costs, with money being repaid on completion of the project
Shapps says: “Self-build is good news for the economyso I’m writing to lenders and encouraging them to use their own industry’s toolkit to see how they can lend to those who want to build their own homes and expand into this growing market.”
Raymond Connor, founder and chief executive of BuildStore Financial Services, says he supports Shapps’ scheme, but that without lenders on board the extra funding will not help.
He says: “It is about products and margin and risk, and without the support of lenders this sector will struggle to get to the next level.”
Shapps has appointed Kevin McCloud, presenter of Channel 4’s Grand Designs and an architecture specialist, to spearhead the campaign.
The scheme came as figures from the Building Societies Association last week showed that one in 10 new homes in the UK are self-built, with the market generating £3bn annually for the economy.