SelfBuild & Design magazine editor Ross Stokes offers some advice for those considering a self build.
Ross will also be presenting a seminar, ‘Beginner’s Guide to Self Build’, at the SelfBuild & Design Show, in association with RGB Building Supplies, on 11-12 September at Westpoint Exeter.
- Getting started
Finding a plot or other site on which to build your dream home is the biggest challenge, as demand far exceeds supply. A good place to start your search is the free online database: plotbrowser.com. Just register and key in your criteria and PlotBrowser will notify you whenever a relevant site comes onto the market in your chosen area. The details usually include planning information and images. In the meantime, you can sign up to the Right to Build register with your local authority. The council is obligated to take into account local demand in its planning policy by creating sufficient self-build opportunities, either through the development of public land or by approving other schemes.
- Be patient and persistent
It will take time to find a plot within your budget so be ready for the long haul. Ask around, pester your local estate agents, and monitor planning applications for upcoming developments. Keep an ear to the ground too for rumours of uninhabited or soon to be vacated properties suitable for renovation or demolition, barns and agricultural buildings going on to the market, and offices or commercial buildings that no longer serve a purpose. These all offer potential development opportunities and persistence is usually rewarded – eventually.
- Keep your options open
The ideal plot will come at a premium so improve your chances of success by keeping your options open. Tired bungalows, houses with big gardens, redundant chapels, commercial and agricultural buildings and even ‘unclaimed’ scraps of land all have potential for development. So think outside the box and keep an open mind.
- Get to know the jargon
Do you understand the difference between detailed and outline planning consent, the implications of buying in an Area of Outstanding Natural Beauty or Conservation Area, or the development limitations of a listed building? It is essential to learn the jargon and become familiar with the planning process. A useful place to begin is planningportal.co.uk.
- Manage your budget
Overspend is the most worrying aspect of a self build. Prioritise your budget – spend money on the fabric of the building, rather than kitchens, flooring and bathrooms which can always be updated later. Be prepared to be flexible with your design and to pare it back if required. Monitor your spending on a regular basis and keep a daily record (and receipts) of all your outgoings. The latter will be essential when it comes to claiming back your VAT at the end of your project. Allow a contingency of at least 10 per cent of your budget for unforeseen costs which are almost inevitable.
- Financing your project
There are specialist self-build mortgages to fund your project, with the money released in pre-agreed stages, once these are completed and approved to the lender’s satisfaction. However, retrospective payments can cause cashflow problems. Buildstore’s Accelerator mortgage offers a solution, with the stage payments released in advance through a bridging loan, which means you can continue to live in your existing home throughout the build and sell it to release the capital once your new home is complete. You can then take out a conventional mortgage if required.
- Will you project manage?
The easiest form of self build is a ‘turn-key’ where the owner engages a company or contractor to take on the entire project, from start to finish, presenting the owner with the key to the front door at the end. It is also, understandably, the most expensive option. At the other end of the scale are the owners who take on all the work themselves. Most selfbuilders opt for a compromise, using a trusted builder or main contractor, and sourcing and supplying the materials when required. Some go even further and project manage the entire thing, often working full-time on site and living nearby. With renovation and conversion projects it is often possible to live on site but be prepared for the challenge. It will almost certainly involve a lack of privacy and plenty of mess.
- Consider custom build
Custom build is a good option for those who want to have input into the design and specification of their new home but aren’t prepared to take on a full self-build project or simply can’t find a plot. The biggest and best-known example of this kind of development is at Graven Hill in Bicester where hundreds of homes are being built. Custom-build schemes are popping up all over the country and vary considerably, but usually offer plots at various stages of development (shovel ready/with foundations/shell completed/turn-key). The buyer can usually choose from a number of approved designs to complete the build, including the internal layout, to their own requirements.
- Save on the VAT
One of the big advantages of a self build over an extension or renovation project is the chance to reclaim VAT on labour and materials. On a budget of hundreds of thousands of pounds, this is a considerable saving, and can be a major consideration when deciding whether to renovate or demolish an existing house. Conversions and renovations of uninhabited dwellings also qualify for VAT reductions. The catch with any VAT claim is that there is only one chance to make your submission to HMRC. A claim (form 431NB or 431C) must be made within three months of completion, and if you forget an invoice, you won’t be able to claim it later.(gov.uk/vat-building-new-home/how-to-claim).
- Learn more at the SelfBuild & Design South West show
If you are interested in building your own home, visit the SelfBuild & Design Show at Westpoint Exeter on 11th - 12th September 2021. It is the leading show in the South West for anyone contemplating a new build, renovation, conversion or extension, with free seminars and masterclasses running throughout the weekend, along with expert one-to-one sessions and a host of exhibitors. I hope to see you there!