The government’s Help to Build scheme has launched this week.

Backed by £150 million of government funding, the scheme helps people to build their own home, or custom build their home alongside a developer by tailoring it to their requirements. The scheme helps them to overcome prohibitive mortgage costs.

How does it work?

Help to Build includes a new government equity loan available to people in England who want to custom build or self build their own home.

The equity loan amount can be between 5% to 20% (up to 40% in London) of the total estimated cost.

The self builder, or custom builder, then puts down a minimum 5% deposit and borrows the remainder up to 75% of the value (55% in London), using a mortgage.

If you’re eligible, you can spend up to £600,000 on your new home, including the cost of the land if you don’t already own it, and no more than £400,000 on the cost to build it.

Housing Minister Rt Hon Stuart Andrew MP said: “Through the Help to Build scheme we will help thousands more people onto the property ladder by giving them the opportunity to build homes that are perfectly tailored to their needs and in the communities they want to live in.

“This innovative scheme will build on our work to break down the barriers to homeownership, as well as creating new jobs, supporting the construction industry and kickstarting a self and custom build revolution.

Support for self build

The government also set out the following measures to boost the sector.

These include:

• A specialist unit within Homes England to bring forward more self and custom build plots on regeneration projects across the country.
• Bringing forward legislation through the Levelling Up and Regeneration Bill to promote self and custom building, including the review of the National Planning Policy Framework (NPPF).
• The Modern Methods of Construction Task Force (MMC) will promote the use of modular factory-built to boost custom homebuilding.