‘Help to Build’: how could this scheme support your plans?

Have you heard of the ‘Help to Buy’ scheme? Well on 24th April 2021, the Government released their plans for a £150 million ‘Help to Build’ scheme (with variants in Scotland and Wales) which suggests an easier and more affordable route for individuals looking to self-build or custom build.

What does this mean? How does the scheme work? Are applications open? Read on…


What is the Help to Build scheme?

The Government’s objective for the scheme is to make it more realistic for budding self-builders or those interested in embarking on a custom build journey to step onto the property ladder by offering lower deposit mortgages. To find out more about these home building routes, please click here.


How will it work?

Help to Build is not yet live, however the Government have developed this scheme with Homes England using a model proposed by the National Custom and Self Build Association (NaCSBA) to provide the initial building blocks. The proposal looks like an Equity Loan scheme and one similar to the current Help to Buy scheme, however, a key difference will be that “the loan would be paid to the mortgage lender on practical completion of the self-build rather than to the builder on the legal completion of the sale of the new build.” (NaCSBA, 2021)

The proposal outlines homeowners will invest a 5% deposit towards the building costs, with the mortgage lender providing up to a further 95%. On completion, the Government will then pay 20% of the cost of the property to the lender, leaving the lender with a 75% mortgage. Further details can be found here.

The introduction of this new scheme could support your dream home building journey

How could I benefit?

Whether you are planning to design a new home from the ground up, or you are commissioning a housing developer for your custom build project, you could be supported by this scheme to build a home which meets your present and future needs. This means your architectural design could include more office space so you can work effectively from home, or particular requirements to support members of your family, for example, those who are disabled or elderly.


When can I apply?

To be in the know as soon as additional details are announced, keep an eye on Government news page along with updates from the NaCSBA.