Making the most of help to build

In April 2021, the Government announced its £150 million ‘Help to Build’ scheme which will make it easier and more affordable for self-builders across the UK to build their own homes. Due to launch in late summer, the initiative will soon be available for all self-builders to take advantage of. So it’s definitely something you should be talking to your customers about now if they’re about to take on a self-build project.

What is the Help to Build scheme?

Help to Build aims to encourage up to 40,000 new homes being built in the UK every year, by giving self-builders access to low deposit mortgages, backed by Government loans. It’s thought that by lowering the level of deposit required for mortgages, customers will then have more cash to splash on the actual build.

This extra funding could allow more people to obtain green mortgages, which offer much better interest rates or increased loan amounts. Having more money available means self-builders can invest in more efficient features, ensuring the house is as sustainable as possible, while also being futureproofed against any upcoming building regulations.

How does it work?

The fine print is still being worked out, but the Government is looking into a proposed model by NaCSBA which is very similar to the popular Help to Buy scheme.

In terms of the process, self-builders would first secure a self-build mortgage with a 5% deposit. On completion of the build, the Government would then provide 20% of the cost of the build to the lender, reducing the outstanding mortgage value to 75%. Applications are due to open soon, and the scheme will be active for the next four years.

What does this mean for the trade?

More people building their own homes using extra funding can only mean one thing for tradespeople – more work with bigger budgets! The scheme is closely tied into the Government’s wide Plan for Jobs employment boosting initiative. According to their figures, SME builders account for 1 in 10 new homes, and this will help boost this figure as the number of custom-build homes grows.

If you do manage to bag a customer who wants to make use of this scheme, then don’t forget to make use of our sister company, Build Aviator’s, estimating services. This estimator can help you calculate the full cost of your project, which can then be submitted as part of the evidence for their Help to Build application. They’ll also be on hand throughout the whole build, offering advice on sustainable product choices, passing various tests including SAP, air, acoustic and water, as well as how to meet various regulations.

So, if you have any self-build projects on the horizon and you’re having conversations about budgets, make your customers aware of the support that will soon be available to them. More details will be laid out on the Government website in the next couple of months, so make sure you check it every-so-often for updates on how your customers can apply.