The National Custom and Self Build Association’s (NaCSBA) has released its report on the custom and self-build market for 2023-24, which argued that a lack of self-commissioned homes was severely restricting the housing market.
According to NaCSBA, self-commissioned homes only amounted to 7% of the UK’s housing supply, compared with a 40% share in similarly developed countries.
NaCSBA highlighted that the custom and self-build sector produces housing that is greener, better built, and more supportive of local economies than comparable speculative housing.
The report revealed that demand for self and custom-build – as measured by the Right to Build Registers – is severely underestimated.
Local authorities assess, and must grant, suitable planning permissions or permissions in principle to match the demand shown by the Registers.
According to the report, from 2019 to 2022, the number of people actively engaged in considering self-build was at least 83,000 by independent objective measures.
In the same period, the number of people joining Right to Build Registers was 29,697, an under-measurement of 64%.
If demand is not accurately reflected, a lack of building plots could become a key bottleneck in building self-commissioned homes.
NaCSBA also argued that a lack of finance and poor education contributed to the ineffective policymaking currently restricting the growth of self and custom-build.
In light of this, NaCSBA developed guidance for future policy development, which it recommended the Government adopt in order to address these roadblocks.
The guidance said that per home policies should be no more time consuming or costly than for a larger development, and must not introduce more delay or uncertainty into the self-build process, for example through reliance on scarce skills.
In addition, NaCSBA argued that policies must not result in solutions or options that the self-builder would be unable to access, in a way that was unfair.
Tony Hall, head of business development at Saffron for Intermediaries, said: “Saffron is proud to be a member of NaCSBA, and to be supporting its report addressing the critical need for more self-commissioned homes in the UK housing market.
“We know that many UK residents are keen to explore building their dream homes, and today’s findings show that this is being underestimated on many levels.
“This shortfall not only risks limiting available land for self-commissioned homes but also limits the growth of a sector known for producing greener, better-built residences that contribute positively to local communities.
“At Saffron, we are committed to playing our part in this by offering adaptable solutions that help those looking to build or design their own homes, as part of our broader mission to support borrowers who don’t necessarily fit the traditional borrower profile.”
