Self-build mortgage applications leap 26% ahead of tax breaks

Self-build specialist BuildStore reported a 26% rise in mortgage applications year-on-year after the government announced further moves to promote the sector.

The broker firm’s figures come as the government announced a raft of measures to promote self-build homes. These include council tax discounts for self-builder and helping them find brownfield land.

The government will also open up its £65m affordable housing fund to community self-build projects.

BuildStore Financial Services chief executive Raymond Connor said: “We know there is a lot of pent-up demand for people wanting to build their own homes, so these measures will help to meet that demand.”

He said the market was already improving: “The backlog of unsold plots are now finding buyers, and those who owned already owned land, but held off during the recession are now also coming forward looking to borrow the cash to build.”

The guidance encouraging councils to assess demand for self-build and the tax exemptions for self-builders were particularly welcome, he added.

The number of mortgage lenders willing to consider self-build in England and Wales has increased from roughly 12 in 2011 to 26 today. More than 90% of these lenders are building societies.

Read the full story here: http://www.mortgagesolutions.co.uk/mortgage-solutions/news/2295256/self-build-mortgage-applications-leap-26-ahead-of-tax-breaks

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