Economic climate, house prices & impact on custom & self-build market

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• Angelo Baccarella
  6 minute read...

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Don’t let the economic climate deter you from custom or self building your own home!

What's happening to house prices?

The current economic problems, caused by the pandemic, raising fuel prices, caused by the war in Ukraine, is fuelling the cost-of-living crisis. As a consequence, the Bank of England has been raising interest rates making mortgages more expensive which is driving change in the housing market and house price increases are expected to stall and or decline. 

Some national house builders are likely to curtail their build operations to address the anticipated fall in demand leading to fewer new homes being available. 

Is now a good time to buy a house or build your own home?

Traditionally and in the longer term, housing will continue to be a good investment and short-term conditions should not drive short term personal housing needs nor the desire to own your own home or build your own home to cater for your family needs and the desire to have a home designed to your personal specification, taste and lifestyle. 

With every downside comes an upside! And adversity creates opportunity. House price reductions will help many people, not least first-time buyers waiting to get on the housing ladder and those that may be able to pick up a bargain! 

UK housebuilders are calling for a relaunch of help to buy, to intervene and to minimise the potential decline in house building and stimulate demand without which housebuilding will slow-down.

Not every area will be impacted the same. Local house prices are determined by how desirable a particular location is and how many similar properties are available - supply and demand. 

But here’s why it’s a good idea to pursue a custom or self-build in today’s market

Traditional barriers to custom and self-build have always been availability of funding, finding a suitable plot and obtaining planning. 

• Mortgage Finance: Help to Build is here, it’s had a slow start but offers a route to finance with 5% deposits, and we’re expecting the product to be refined to make it more accessible. UK Government Launch £150m Fund To Help People Build Their Own Home.
  
  In-addition there are more finance products for custom and self-build on the market than ever before, giving you more choice. Find a broker or lender on NaCSBA’s Self Build Portal.
   
• Land: This is intrinsically linked to planning, and thanks to the Right to Build government task force, over 88 councils have a percentage policy in place, which requires larger sites to include a proportion of plots allocated to custom and self-build homes.
  
  The NPPF includes a requirement for local authorities to bring forward 10% of land for small sites being ideal for the custom and self-build sector.
  
  Many other Councils have other policies to support the route. For instance, Parish Councils and local communities are much more likely to support such schemes which will deliver homes that are better designed, built to higher standards and are more environmentally friendly.
   
• Planning: The Right to Build legislation created registers and a statutory duty for English Councils to include custom and self-build in their policy. This duty means more and more Local Planning Authorities are aware of custom and self-build and it’s benefits and challenges and will be obliged to make more plots available to meet local demand.
  
  Due to the above policy commitment requirement, obtaining planning for smaller sites is proving more successful for custom and self-build schemes with more councils granting planning directly but also, which is very important, decisions have been overturned via statutory appeals where councils have been slow in acknowledging the change in government policy and support for custom and self-build schemes.
  
  In a number of applications, the fact of including custom and self-build units within larger schemes, has helped tilt the balance in favour of granting planning.

The Benefits of Building your own home

Custom and Self-builders do build more beautiful and greener homes that have far better energy performance! 

Building your own home can be a challenging and time-consuming process, but the end result is well worth the effort. With a clear plan, a realistic budget, and the right team of professionals, anyone can build the home of their dreams.

In addition to the traditional self-build route, another option to consider is a custom build home. A custom build home allows you to have all the advantages of a self-build home, but with some added benefits. One of the main advantages is that custom build home developers provide a plot, which can be difficult to find on your own. This eliminates the need for you to go through the process of finding and purchasing land, which can be a time-consuming and costly endeavour.

Another advantage of a custom build home is that it minimises risk. When building a home on your own, there is always the possibility of making mistakes, which can be costly to fix. A custom build home is guided by a professional builder, which means you don't need to worry about or be involved in the complex planning and building control process. This eliminates the risk of making mistakes and ensures that your home is built to the highest standards.

Furthermore, a custom build home is generally quicker, easier, and less stressful than a traditional self-build. The builder will handle all the details of the construction process, freeing you up to focus on the more enjoyable aspects of building your own home, such as choosing the fixtures and finishes. This can make the entire process less stressful, as you don't have to worry about all the details that come with building a home on your own.

Building your own home can be an extremely rewarding experience, but it also comes with its own set of challenges. A custom build home is a great option to consider if you want all the benefits of a self-build home, but with less stress and less risk of making mistakes. With the help of a professional builder, you can be sure that your home is built to the highest standards and that it will be a place you will be proud to call your own! 

Who should build their own home?

The benefits of building your own home is applicable to many people, young or old or in different stages of their life or circumstances. Starter homes, downsizing, wanting to create your own version of lifestyle, there are no barriers to people taking on the challenges and fulfilling their own dream! 

One particular group of people, that springs to mind, who would benefit in this particular economic climate are older people. Those living in homes with a large build-up of equity that are completely unsuitable for them either because the property is too big for them, now that their families have grown up and left home, or its poorly insulated and is costly to heat or difficult to maintain. For this demographic, custom or self-build makes sense. They have the desire, the funding and vitally, it’s the right time in their life! And most people simply won’t find anything in the open market that suits any comfortable downsizing options. For these people the time is right now, regardless of wider economic forces, and in fact energy bills might be the incentive to review their living conditions! 

Get help and advice to build your own home on the Self Build Portal. Or get in touch with Stellco Homes and find out how we can custom build your own home!

Avoid the risks of going alone, at Stellco Homes, we understand the challenges and obstacles, that’s why our experienced team guide you through the entire process of finding a plot, design, planning & building safely, on time and on budget and stress free for you to enjoy the experience! Register your interest now or learn more about our custom build process.