Self Build and Land Market Commentary June 2009

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Plot sales in June were 40% higher than in April 2009, so people are starting to realise that self build is a real option this year, when in previous year it just wasn’t possible to find a plot or even a build to build!

Currently there are over 9,000 building opportunities listed, with an average of 550 new plots and building opportunities are being added to BuildStore’s Plotsearch database each month.

The average plot price in June 2009 was 20% lower than December 2008, costing £195,171 instead of £243,584. Over 60% of plots on the Plotsearch database can be bought without paying any stamp duty at all, saving budding self builders a fortune. 

And it’s not just supply that’s increasing, demand for self builders trying to find a plot is going up as twice as many people subscribe to their Plot Finding database in the six months of 2009 versus July to December 2008 and enquiries for specialist finance increased by 39% versus the same time last year.

Even smart, forward thinking lenders are starting to realise the potential from backing self build, with Bath Building Society launching a mortgage that lends 95% of the cost of the land or building to be developed, and 95% of building or renovation costs. The caveat being that once finished, the final loan to value (LTV) does not exceed 80%.

Better still, unlike the people who consistently run out of money on Build a New Life in the Country, Grand Designs or Property Ladder, to make the project run more smoothly, money is released during to project in advance of each stage of construction providing the homebuilder with much needed cashflow to buy materials and pay builders and tradesmen.

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