8 July 2013
A new Practice Guide has been published today by the National Self Build Association (NaSBA), which explains a number of ways small builders and property developers can get involved in the expected expansion of the custom build homes sector.
The Guide includes a worked financial model, showing how the development returns typically work out, and it explains the advantages of Custom Build. These include:
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- Reduced borrowings, as the customers/home purchasers will often fund the construction work as it progresses;
- Reduced risk – as the customers/purchasers are usually lined up before any construction work begins;
- More customers – three quarters of house purchasers are not interested in the output of the volume builders. They want something more bespoke, and custom build offers them this.
The Guide explains that custom build projects are also eligible for low cost finance via the Government’s new £30m Custom Build Investment Fund.
And it includes six case studies showcasing a range of different custom build developments that are currently underway by some of the sector’s pioneers.
The Guide has been produced with input from small builders and developers and has been welcomed by the Federation of Master Builders (FMB), and by the Housing Minister, Mark Prisk MP.
Commenting, Mark Prisk said: “This Government is determined to help make building your own home easier for everyone. We must maintain the momentum which is building around this sector and continue to maximise our efforts to help all those people who want to build their own home”.
“Small builders and developers are the foundation of the UK’s construction sector, and it is only with their support that we can significantly increase the number of custom- built developments. So I’m delighted that NaSBA and the Federation of Master Builders will be promoting this new Guide so more builders can be involved in delivering new homes in this important sector.”
Commenting, Brian Berry, Chief Executive of the Federation of Master Builders, said: “Building your own home is becoming an ever more attractive option for those who want to get on the housing ladder or simply want a home that suits their individual needs. The self-build market offers real potential for growth, which could make a significant contribution to solving the growing housing crisis, whilst also increasing choice and diversity within the home building sector. SME house builders have always championed choice and customer focus and FMB members stand ready to deliver the fully-warrantied quality homes that a new generation of buyers is looking for.
“This new report from NaSBA provides an engaging guide to some of the innovative self-build schemes available and highlights new options which I’m sure will be of interest to many small developers.”
The author of the Guide, Tim Doherty, chairs NaSBA’s Best Practice team, and is a chartered surveyor with many years’ experience of the self/custom build sector.
The Guide is available via The Self Build Portal on the Technical Downloads page.
