Through Self-Build Wales, the Development Bank of Wales will offer loans on pre-agreed plots which will be repayment free until the new home is mortgaged, allowing people to build their new home and cover living costs.
It’s a dream come true for the successful applicants who can choose to use an approved builder or in certain circumstances do the work themselves, as local authorities and housing associations will make plots available, complete with planning and site requirements.
Every plot will have a ‘Plot Passport’ including approved designs, an estimated build cost and options for personalising the home.
Approved applicants can reserve a plot by providing a 25% deposit on the plot cost. The Welsh Government, through the Development Bank of Wales, will provide the rest of the funding.
Housing and Local Government Minister, Julie James said, “We want to make self-build available to many more people in Wales, not just the most privileged households. Finding the land, navigating planning consents and being able to afford to self-build while covering the cost of living can be real barriers.
“Figures suggest that an average self-build house in the UK costs only 70-75% of its final value because no developer profits are involved.”
Ifan Glyn, Director of FMB Cymru, said, “When you consider the housing crisis that exists, the custom and self-build market has been an under-utilised sector in the ongoing battle to meet the demand for homes. Research has shown that over half of adults in the UK would one day like to build their own home. Across the EU, approximately one third of all homes are custom or self-build whereas in Wales, it’s just five per cent.
“The house building market is dominated by a small number of very large companies. The type of firms that get involved in custom self-build projects tend to be small, therefore this can provide an opportunity for small contractors to re-engage with house building.”