15 March 2013
An innovative proposal that could result in tens of thousands of low cost self build plots will benefit many who want to become homeowners, particularly first-time buyers.
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The influential think tank, Policy Exchange, has today published a new report that suggests that councils that fall short of achieving their own housing targets should acquire low cost land and then sell plots to would-be self builders. The hope is that this could revolutionise the UK housing market, and double construction output to 200,000 homes a year. In 2012 just 100,000 new homes were built.
Policy Exchange’s proposal works like this:
- Landowners would offer to sell land for new homes (that was not already allocated for housing) to the local council via a sealed bid auction. Land auctioning would put downward pressure on land prices. The council would buy the cheapest suitable land, split it into plots for self builders, then sell it on to them at no profit.
- Local people would register their interest with the council in buying a plot of the land to build and design their own home
- The council would hold a lottery and allocate each plot of land available to a household. Existing homeowners could take up their new plot of land or gift it to a close family member (e.g. a grandparent looking to downsize, children looking to get on the housing ladder). But these could not be second homes.
- To ensure local residents would be happy with the new design, a neighbourhood plan would be drawn up that could limit what was built (e.g. no concrete, must use local materials)
- People would have to live in the new home for at least five years to ensure that they cannot simply make a quick profit
Alex Morton, Head of Housing, Planning & Urban Policy at Policy Exchange and author of the report, said this model would help councils deliver their new homes targets and give the construction industry a much needed boost. It would also show that politicians were on the side of the people, not the big developers. “Instead of antagonising people with centrally imposed and mediocre or poorly designed new housing developments, the government could instead work with councils to sell off plots of land to local people to design their own homes at a much cheaper price,” he said.
“Grand Designs depicts self build homes as playthings of eccentrics. They don’t have to be. Under our proposals local people would be able to choose a beautiful thatched cottage or Victorian house which would also boost the value of nearby properties”.
“This self-build scheme is the last real option to raise private housing numbers before 2015. It also would be popular with people and elected officials.”
Ted Stevens, National Self Build Association Chair, said: “There are literally millions of Brits keen to build their own home. But currently only a tiny fraction of those that are keen on the idea are able to realise their dreams. The main problem is obtaining a reasonably priced plot of land. If this solution took off it would transform the housing landscape of the UK, and hundreds of thousands of self-builders would be able to get the homes they really want.”
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