The Welsh Government has introduced a new scheme to encourage self-builders by helping to “remove the barriers and uncertainty that prevent people in Wales from building their own homes”.
Self Build Wales is thought to be the only scheme of its kind in the UK. It will provide both SME builders, self-builders and custom builders with a plot and loan that covers the whole cost of building the home and 75% of the cost of the building plot. The plots will have planning permission already in place and the maximum loan value will be £400,000.
On average, the cost of a self-build house in the UK is around 75% of its finished value but only around 10% of homes are self-built.
There are great advantages for families where a member is older or disabled, in particular, as the home can be custom built to reflect their needs. The lower cost also means people can live in an area where they might not be able to afford by conventional methods.
Self Build Wales is being financed by the Welsh Government and managed through the Development Bank of Wales. £210 million will be invested and building plots are currently ‘under consideration’ in three areas: Anglesey , Swansea and Tredegar. Just one site is yet to reach the planning stage, at Brynhir in Pembrokeshire, where six plots are likely to become available.
The loan will be due for repayment in full after two years, or once the building is completed, whichever comes first. However, there are restrictions.
No loan repayments will be expected until the new home is built, but it must be fully repaid before you can move into the property. Self-builders can only use the scheme once and will not be able to rent out or sell the property for five years from the date of completion. If the property is sold prior to this, all the proceeds after the mortgage is paid will be payable to Self Build Wales.
If you’re thinking of buying property, a Chartered Surveyor will overlook the condition and structural elements of your new property to help you safeguard your investment.