It is aimed at offering a route into homeownership for people in Wales who want to live in their local area but have been prevented from doing so because of high prices.
It will also offer opportunities for disabled people to build custom adaptive homes to meet their needs in their community.
Affordability
The scheme is likely to be funded with £210 million of investment. The Development Bank of Wales has said it will guarantee loans, which will be repayment free until the new home is mortgaged, on pre-approved plots. This will allow people to build their new home and cover living costs.
Applicants who are approved to go through the process can reserve their plot with a 25% deposit – the Welsh Government and Development Bank of Wales provide the rest of the funding, and repayments can be deferred for up to two years or when the home is finished.
Planning
Plots will be made available by local authorities and housing associations with the planning and site permissions already complete. Each scheme will also have a ‘Plot Passport’ including an estimated build cost and option for personalising each home.
Julie James, housing and local government minister, said it wanted to make self-build available to many more people in Wales, not just privileged households.
“Finding land, navigating planning consents and being able to afford self-build while covering the cost of living can be real barriers,” she said. “We have launched this scheme in partnership with local authorities to overcome all of these barriers.”
James added: “Figures suggest an average self-build house in the UK costs only 70 to 75% of its final value because no developer profits are involved. This puts that benefit into the pocket of the homeowner. At around 10% of new homes the UK has a much lower rate of self-building than other countries around the world.”
Meanwhile, Andrew Baddeley-Chappell, CEO of the National Custom and Self-Build Association said: “Most of us aspire to build our own homes, yet despite the growth in the sector, too few currently achieve that dream.
“Putting the homeowner in charge leads to more homes of better quality and value. It helps bond the homeowner to the community where such homes are built. This package of measures sends a clear message that Wales welcomes and supports self-builders and we are excited to see the positive benefits that will flow from this announcement.”
The scheme is due to launch in late spring. There will be more information available on the Your Home in Wales website in the coming months.
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