Encourage progress in self- and custom builds, but more action is needed – Staking Strategy
In the housing sector, recent policy announcements, such as government support for SME builders to acquire UK construction, suggests an increasing awareness of the importance of small and medium-sized builders who are addressing the UK housing challenges.
This recognition responded to Labor’s housing agenda, which includes several reforms aimed at supporting smaller builders, as well as plans to establish housing banks to provide financial assistance. Together, these recommendations present a shift to the basis for expanding the provision of new homes and strengthening the overall capacity of the industry.
As part of this transition, self- and custom built homes designed and delivered by individuals or small groups provide valuable opportunities for expanding housing supply and empowering communities. However, despite growing interest, the industry is underutilized and has not yet fully embraced government strategies.
Continuous growth barriers
Despite encouraging policy signals, the industry faces ongoing challenges. Planning approvals for new homes have fallen to 13-year lows, with smaller developers and self-establishers being particularly affected. Complex planning systems, delays in approval, limited access to affordable land, and restricted mortgage standards all pose barriers.
Financial conduct authorities’ review of mortgage rules provides potential relief by expanding access to funds, especially for first-time home buyers and older borrowers. But if self-builders continue to struggle with planned permitting and land acquisition, mortgage reform alone will not solve the supply problem. The industry needs policies specifically addressing these issues.
Financial reform and its meaning
The government’s plan to redesign England as a public financial institution could help by offering cheaper, more flexible loans. This change can support smaller developers and community-led housing projects that are often difficult to obtain commercial financing. However, without the improvement of the planning process and targeted land releases, the reform may not be able to reach its full potential.
It is crucial that self-builders can provide land through public offerings rather than being dominated by larger developers. Furthermore, investment in infrastructure and support for innovative construction methods are crucial to unlocking the industry’s capabilities.
What did you miss a speech at the mansion?
The Prime Minister’s luxury home speech showed positive prospects for the mortgage market, focusing on increasing competition, lowering interest rates and encouraging more flexible lending. However, it excludes any mention of self and custom housing. Lack of recognition is important because these sectors can promote affordability, consumer choice and regional development.
By failing to address self- and custom builds, the presentation missed the opportunity to send targeted financial support to these projects. Mortgage lenders currently have little incentive to offer products that are suitable for self-establishers or pursue sustainable and custom homes. As a result, self-establisher financing challenges remain unresolved.
Why self and custom builds go beyond numbers
Custom built homes offer more than just additional housing supply. They promote community engagement, greater design diversity and increase energy efficiency. These homes tend to better meet the long-term needs of their residents and often reflect local characteristics and infrastructure capabilities.
To unlock these broader benefits, decision makers must go beyond general housing supply goals and create an environment where smaller builders and individuals are confident in investing and delivering.
Missed opportunity
While the government is clearly focused on increasing the supply of new homes, self- and custom construction is still ignored in key policy announcements and reforms. The lack of specific risks of concern makes a valuable part of the real estate market maldevelopment.
To enable the UK to create a more inclusive, sustainable and responsive housing market, it must be clearly included in funding and policy plans.
Tony Hall is Business Development Director for Saffron Architecture Association
