Surge in demand for self-build

The number of people seeking funding to build their own homes is soaring, with enquiries up 17% in the first half of 2010 compared to the same period last year.

According to BuildStore, one of the UK’s leading self-build finance specialists, increased land availability, falling land prices and the fact that plenty of tradesmen are looking for work were all factors helping to boost the self-build sector to the extent that enquiries in the first six months of 2010 were almost double the levels seen in the first half of 2008.

BuildStore has now teamed up with Chorley Building Society to provide mortgages for people looking to build their own homes, but finding funding hard to access.

The scheme will lend up to 85% of the cost of the land and 85% of building costs, released in stages through the construction phase, providing the final loan to value does not exceed 80%.

Raymond Connor, chief executive of BuildStore, said:

"Self-build finance has become increasingly difficult to come by and it's now even more important that people use a specialist to secure the right type of funding to ensure the project is a success."

Stephen Penlington, chief executive of the Chorley Building Society, said:

"We have been aware of the significance of the self-build market in the UK for some time, and we have been keen to work with BuildStore to bolster our offering to self-build customers."