Self-build is housing market's next big thing
St Albans Observer 18/03/2003
The start of a new year brings with it a renewed energy for the housing market and sees the self-build and renovation sector destined to pick up on the phenomenal growth experienced over the past few years, writes Jason Orme, deputy editor of Homebuilding & Renovating Magazine.
Building your own home has never been more in the public's mind and this is set to continue this year with a brand new series of Grand Designs on Channel 4.
With the last series attracting some 2.3 million viewers and being the channel's top rated program at the time, it is clear the public's interest in self-build is insatiable and, when coupled with at least two further major new programmes on the topic, sets the industry up for a year in the spotlight.
With more uncertainty about the housing market at the start of the year than at any time over the past five years, the safest way to guarantee yourself against negative equity is to build your own home.
Although most analysts expect there to be a modest rise in prices rather than any signs of a crash.
In most instances, discounting the effects of inflation, self-builds tend to save around 30 per cent of the value of their finished house by building it themselves, a saving brought about by taking away what the profit developers make on most new houses, along with the VAT savings made on materials.
Consequently, a loan of no more than 70 per cent of the house's final value is good security against a fall in the market and the subsequent negative equity.
One of the few barriers remaining to self-building becoming the mainstream activity it is in North America and much of Europe, is the decreasing availability of building plots.
Despite pressure from the industry on Lord Rooker, the Minister for Housing and Planning, to expand village boundaries and push into unused and often far from beautiful agricultural land, there seems to be no end to the frenzy that accompanies a building plot coming onto the market.
Prices in the south-east continue to defy all belief, with figures of £1 million not uncommon in the most sought-after areas.
Indeed, in their desire to selfbuild, many southerners have decided to uproot and move to the north or south-west where prices are affordable and land more plentiful.
Such is the desperation for the land, that several companies have made quite a healthy profit in recent months by buying up agricultural land without the one pre-requisite for building: planning permission, and selling it on at a mark-up to desperate would-be builders who hope one day it will become a proper building plot.
Unless laws change, these companies, who prey on the desperation of people who have in many cases been looking for a building plot for several years, will continue to grow.
The National Homebuilding & Renovating Show, NEC Birmingham from March 13 to 16, will have more than 300 exhibitors and daily free seminars on all aspects of building and renovating.
For tickets for the show, visit www.homebuildingshow.co.uk or telephone 020 8710 2186.
