'Finance issues holding back over half of aspiring self-builders' - 24Dash.com
- Date: 08/08/2013
24dash.com / 8th August 2013
Aspiring self-builders are being held back by a lack of available finance, a survey has revealed.
BLP Insurance's research found that 54% blamed financing issues for their inability to realise their dream homes, while 17% blamed a lack of available land.
Meanwhile, 14% said that they didn't have enough time to commit to building their own home. Other obstacles included the inconvenience of the building work and the lack of expertise such as not having the right contacts for builders and architects.
Additional worries include having a young family and the fear of dealing with rogue traders. The survey comes as the government looks at new initiatives to generate housebuilding. Government figures show that the number of new homes built in the year to March in England was 108,190, down 8% on the year before and 49% below their peak in 2007.
Private housebuilders have accounted for a growing proportion of the homes built in Britain in recent months following the government's Funding for Lending scheme, which cut the cost of borrowing.
Brian Kilroy, BLP's business development manager, said: “The lending community are starting to wake up from the hibernation brought on by the recession and there are now more products and funding vehicles on the market which are available to self-builders to allow them to get their projects underway. But more still needs to be done to make access to funding easier for a much wider group of aspiring self-builders.
“Private landowners are starting to realise the financial potential locked in their land and the availability of smaller plots have increased over the last 12 months paving the way for aspiring private house builders to construct their dream home. There is no real immediate solution to solve the problem of lack of land and local councils are under significant pressure to find space for more homes to keep up with the demand while also protecting the Green Belt areas.”