Following agreement by both the House of Commons and the House of Lords, the new Self-build and Custom Housebuilding Bill received Royal Assent on 26th March 2015.  It is now an Act of Parliament; referred to as the Self-build and Custom Housebuilding Act 2015.

Numerous housing surveys have identified the need for up to 250,000 new homes to be built in the UK each year over the next 25 years.  It is unlikely that traditional construction will meet this requirement, less than half (112,630) was delivered in 2013/14.  The purpose of the new legislation is to supplement the traditional construction industry with more choice and innovation, to ensure more homes are being built.

The new legislation places a duty on local authorities to create a register of people who have expressed an interest in self build and custom build projects, and to make provision for those on the register in developing housing initiatives and local plans. 

Local authorities should also allow volume house builders to include self build and custom build projects as contributing towards affordable housing obligations, and work in partnership with Registered Providers if appropriate.  However, most lenders are reluctant to provide self build mortgages, this is seen as a niche lending area and each self builder is currently required to have substantial equity in place.

Capita Asset Services has already supported local authorities through the successful Local Authority Mortgage Scheme (LAMS) and we have more recently developed the Custom and Self Build (CSB) Scheme to support this new market.  CSB is designed to enable local authorities to deliver the key requirements of the Act, including the creation of the register.  CSB provides access to 95% LTV mortgages with no stage payments, reduces the risks faced by local authorities and lenders and enables local authorities to retain control over the developments from the outset to completion.. 

CSB can be implemented in a number of different ways to respond to local housing need.  CSB supports development on council owned and privately owned land, on large or small sites, for outright purchase and shared ownership.  CSB can also be used in regeneration areas and help to bring long terms empty properties back into occupation.

CSB places the local authority firmly in the driving seat, making sure key aspects of the new legislation are addressed through a single integrated scheme, including the provision of mortgages.  

For further information contact Cecilie Booth on 07970 325557