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Self-build: Should people build their own homes?
wotsthat
Posts: 11,325 Forumite
Spotted this earlier.
http://www.bbc.co.uk/news/magazine-14125196
Given that there's a shortage of housing in the UK the article asks whether people should do something about it themselves and start to build more of their own homes.
I've given this some attention in the past and found that desirable building plots are close to impossible to find.
http://www.bbc.co.uk/news/magazine-14125196
Given that there's a shortage of housing in the UK the article asks whether people should do something about it themselves and start to build more of their own homes.
I've given this some attention in the past and found that desirable building plots are close to impossible to find.
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Comments
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It's a great idea, unfortunately the costs of building have become far too prohibitive for the majority because of the price of plots. Housebuilding is now only really an option for executive housing because it is not financially viable to build a 3 bedroom house anymore as a self build.
Most of the of the larger pieces of land are sold off to developers like Persimmon who cram as many shoeboxes they can on the piece of land.0 -
Spotted this earlier.
http://www.bbc.co.uk/news/magazine-14125196
Given that there's a shortage of housing in the UK the article asks whether people should do something about it themselves and start to build more of their own homes.
I've given this some attention in the past and found that desirable building plots are close to impossible to find.
I've spent quite a bit of time in the past trying to find a plot (at the right price) without success. If the Gov could somehow make it easier now/next few years it would be good timing for me cash wise as I have the funds available earning only peanuts in savings accounts.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
I'm guessing, but this probably stems from 'Marketing' of the self-build merchants [of which Potton is a market leader].
It's a nice idea, but not one, I think, that solves the issue at hand.
The first issue is always trying to find the right 'plot'. Unlike commercial builders, you are looking for a single plot of the right size and location. These are as rare as a bacon sandwich at a Bah Mitzvar.
After this, you have a choice of literally self-build or 'outsource' the build to 'professionals'. The former is only cheaper if you don't 'charge' for your own labour. [Incidentally, would you ever buy a house from someone who literally built it themselves?].
If you go the 'professional' route, then I remain unconvinced that this is 'cheap'. Getting mains pipes/cables to your plot costs money whether for one house or 15. No economies of scale....
You might end up with a very 'individual' and well-designed house that meets your needs perfectly, but I strongly suspect it ends up being reasonably expensive.
Personally, I think the best 'self build' [if you can call it that] comes from buying a distressed old house very cheap and then gutting it before tastefully extending and improving it.0 -
A mate built his own a while back mainly off the proceeds of the tech bubble (BT shares), now that was lucky timimg.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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Since planning is based on legalised bribery (section 106).
A developer can throw a much larger bung to the local council than a person who self builds.0 -
This is just another of Shapps ill conceived schemes that make it sound like the government is doing something when in fact it is doing nothing.
The problem is mortgage rationing. Solve that problem, and everything else will follow.
You could grant planning permission tomorrow for a million houses, and it wouldn't make the slightest bit of difference. Builders won't build what they cannot sell as very few can get a mortgage. Self-builders won't build what they don't have funds to build, because THEY can't get a mortgage either.
No mortgages = no houses.
It really is that simple.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »This is just another of Shapps ill conceived schemes that make it sound like the government is doing something when in fact it is doing nothing.
The problem is mortgage rationing. Solve that problem, and everything else will follow.
You could grant planning permission tomorrow for a million houses, and it wouldn't make the slightest bit of difference. Builders won't build what they cannot sell as very few can get a mortgage. Self-builders won't build what they don't have funds to build, because THEY can't get a mortgage either.
No mortgages = no houses.
It really is that simple.
How many times Hamish, it's not mortgage rationing it's sensible lending.
If someone fulfils the criteria they can get a mortgage. Yes some are being strict with their lending criteria but hopefully that is a lesson learnt from the past.
The problem is prices because still at todays prices many 1st time buyers need more than 4 times earning multiples to be able to afford a house which going down the road of loose lending again.
You know full well that the last house price boom that we had was fueled by self cert mortgages, liar loans, high mortgage to earning ratios and 100 - 125% mortgages. These all contributed to pushing up house prices.
Now most of these sorts of deals are unavailable (thankfully) house prices will eventually have to give, as very few (as is evident now) will be able to get a mortgage.
When house prices drop to a level where the current lending criteria can allow people to buy and the banks stick with that criteria we shall hopefully see a more affordable and sustainable housing market.0 -
I'd consider it except most plots are either in the wrong location, or already have PP for a 4-bed detached house, or PP for two 3-bed semis. I'd just want a plot where I decide what I want... and that'd be one detached 2-bed house. Trying to get a change of use isn't something I'd want to attempt - and I don't want to buy a plot for two semis and have to go through change of use then selling off the other half.0
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shortchanged wrote: »How many times Hamish, it's not mortgage rationing it's sensible lending.
If someone fulfils the criteria they can get a mortgage. Yes some are being strict with their lending criteria but hopefully that is a lesson learnt from the past.
How many times Shortchanged, it's not sensible lending it's bl00dy mortgage rationing.
The banks have a restricted pool of funding to access.
They must shrink the pool of potential borrowers to match the limited funding.
They do this by requiring absurd deposit requirements and credit scores.The problem is prices because still at todays prices many 1st time buyers need more than 4 times earning multiples to be able to afford a house which going down the road of loose lending again.
Bollox.
Rent is more expensive than mortgage interest, even at 5%, in 80% of the UK.
Mortgage interest, even at 5%, would be well below the levels of after tax income seen in the past.You know full well that the last house price boom that we had was fueled by self cert mortgages, liar loans, high mortgage to earning ratios and 100 - 125% mortgages. These all contributed to pushing up house prices.
Now most of these sorts of deals are unavailable (thankfully) house prices will eventually have to give, as very few (as is evident now) will be able to get a mortgage.
Mortgage lending is now 65% below what it was at peak, and as you point out all those irresponsible deals are long gone..
Yet House prices are just 10% below peak.
It obviously wasn't irresponsible mortgage lending driving those prices up.When house prices drop to a level where the current lending criteria can allow people to buy and the banks stick with that criteria we shall hopefully see a more affordable and sustainable housing market.
When mortgage lending increases to historically normal and prudent levels, then we will see a sustainable housing market.
The current shortage of lending has reduced building to the lowest levels in a century whilst population is soaring. This is driving up rents to record highs and sowing the seeds of the next boom.
That is what's unsustainable....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »It obviously wasn't irresponsible mortgage lending driving those prices up.
Whatever Hamish. You know damn well that the loose lending during the boom continued to fuel the rampant HPI that was evident, if you can't see that............well, there's no hope.
You constantly state it's lack of housing, however during the boom years buildings were going up left, right and centre and yet house prices still rose.
Why?? Because the properties were being marketed at that price and the banks were willing to lend the money to pay those stupid prices, which of course has now all backfired. This and combined with the fact that there is a mentality in the UK of many seeing property as an investment.0
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