How to reap rewards of DIY house building
THE government wants to increase the number of people building their own homes.
It first outlined its intention to introduce a new land release scheme, dubbed the ‘Right to Build,’ in its 2014 budget.
The objective was to boost the number of self-build homes in the UK by giving self-builders access to council-owned land, viable, serviced building plots, to enable and simplify the development process.
Programmes like Grand Designs have encouraged the desire to build a dream home; but is it wise to take up DIY housebuilding?
Well, building your own home from scratch could work out significantly cheaper than buying one ready-made. A lack of supply of houses has helped to drive up property prices to record levels. Not only are we paying more, we’re also getting less for homes ready built.
According to self-build mortgage broker Buildstore, a home built from scratch is typically worth 25 to 30 per cent more than it costs to build. Self-builders also save on stamp duty, which is paid on the transaction of the land.
On top of this, the government is determined to make it easier to plough through the bureaucracy and red tape, already reducing hundreds of pages required for planning consent down to about 50.
Build It Live expert and self-build consultant Mike Hardwick agrees that building your own home could be the most financially savvy decision you ever make, as long as you are ‘keeping a tight rein on your purse strings as they make a desperate bid for freedom.’
He said: “My advice for setting your initial budget is to start by speaking to a specialist self-build mortgage broker.
“Find out how much you can borrow, add this to what you have in savings and then include any equity you’ve accrued in existing property.
“Subtract the land cost from this total then hive off a reasonable sum to account for service connections and surveys.
“The amount that remains is what you have to cover the building work.”
Mike warns that it is tempting to splash out on designer kitchens and bathrooms, but states these can all be upgraded further down the line when your finances have recovered. Prioritise where the quality is initially needed on windows, doors, roof tiles and exterior finishes.
Find out more about self-build and home renovations at Build It Live on February 18 and 19 at EventCity, Manchester.
Tickets from www. builditlive.co.uk