An Introduction to Self Build

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An Introduction to Self Build

Are you… …data from 2016

5129%

£305,943

78%

£220,57333%

£50k - £59k247m2

5

years

old

total build cost

cost of plot compared

to build cost

plot spend

income per year

Uplift achieved

Years

older

than in

2007

gross internal

floor area

£1284cost m2

cost of plot compared

to end value

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What is Self Build?

• Last year around 13,000 people built their own home

– Bespoke design that really deliverswhat you want

– Senseof achievement

– Improved energy efficiency and sustainability

– Added value

Great news…

Two key pieces of legislation:

The Right to Build

1. Self & Custom Housebuilding Act

• Was enacted on 1stApril• Makes planning authorities keep a register of people interested in self build / custom build and

• “Have regard” to that register

2. Housing & Planning Bill• Was enacted 31stOctober 2016 as “Right to Build”

• Requires that the demand indicated by the register is satisfied with plots that have permission

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Register your right!

The Right to Build – Self & Custom House Building Act

Search for your council’s register or visit the right to build portal to find your register https://www.righttobuildportal.org/

What is Self Build?

• Fully hands on

• Self Managed

• Turnkey

– Project Managed

– Builder Managed

• Full build

• Wind & watertight

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Custom Build

• Self Build

– You find the land

• Custom Build

– Someone else finds the land and at the very least services the plots

Finding Land

• Look out for other dedicated online sessions from us…

• The market for ‘oven ready’ plots is very competitive

• Plots are relatively scarce, 90% of land in England can't be built on.

• Limited supply of developable land

• Planning complications –Nimbyism.

• Limited availability –Defined urban settlement boundaries.

• Control of suitable land by developers. (Land Banking)

• Supply and demand –Good plots move fast.

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Finding Land

• The perfect plot doesn’t exist!

• Unrealistic expectations about the value of a plot.

• Very rigid requirements about;

• Where you want to live.

• The type of house you want to build.

• Failure to move quickly –Indecisive!

• You’re probably looking in the same places as everyone else!

Finding Land

• Before you start looking;– Think carefully about what you really need but also what you could do without.

– Rigid expectations considerably narrow your options.

• Remember;– Restricted locations limit design options.

– Restricted design limit plot options.

• Be flexible - Be prepared to compromise

• If you can’t compromise then be prepared for a long wait

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How Much Land Do I Need?

How the same 154m2

(1800ft2) house fits on

different sized plots –

Caxton(ish) Size

St Neots,

Show Centre

5260m2

(Approx 1.3

Acres)

Finding Land

• Search the online resources– Plot Search– Plot Finder– Plot Browser

• Network, network, network• Take a drive or even better a walk

• Plots that have just got permission and those that have failed

• Look out for stalled plots• Use online mapping sources; don’t forget Ordnance Survey

• Talk to Land and Estate Agents• Buy at auction

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Finding Land

• Beware of land without planning permission

• Do not buy a field!

• Replacement dwelling

• Garden Grab

• Other possibilities– Utility companies

– Church Commissioners

– Rail companies

– Breweries

– Developers

– Large developments withprovision for self build

Finance

• Establish your budget

– Total available spend

• Determine costs

– Total outlay; land, build and fees

• Predict cashflow

– Cash needs to be available at the right time• Land purchase

• Construction costs

• Purchase terms, timings and credit

• Contingency

• Ongoing living costs

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Finance

• Arranging Funding– What will the lender actually lend.

• Typically75% - 95% of LTV of project cost

– How much will they lend• Income, employment status…

• Outgoings

• Affordability and credit scoring

– But… …it’s all about cash flow

• Stage payments or “accelerator” advanced stage payments

• Make sure you talk to the experts

Stamp Duty

Stamp Duty is a tax you pay when buying a residential property that

costs more than £125,000. A second home, attracts an extra 3% charge.

Purchase price of property Rate of Stamp Duty Additional Home Rate*

£0 - £125,000 0% 3%

£125,001 - £250,000 2% 5%

£250,001 - £925,000 5% 8%

£925,001 - £1,500,000 10% 13%

Additional Property Exemptions - Non residential property

The enhanced rates only apply to additional residential property. The following types

of property, and land, are therefore exempt as additional property for stamp duty

purposes.

1. commercial property (such as shops or offices).

2. agricultural land.

3. plots of land (even where land may subsequently be used for residential)

4. forests.

5. any other land or property which is not used as a residence.

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Value Added Tax!

Don’t forget about your VAT reclaim!

• Supply and fix elements are zero-rated at source

• You have to pay the VAT and Reclaim it at completion for

materials only

• The arrangements for reclaiming VAT are set out in VAT notice

431N

• Services provided by subcontractors, such as roofers,

bricklayers, plumbers, carpenters etc. should all be zero-rated

so you shouldn't pay any VAT on these.

• You can claim for most building materials which you purchase

yourself, with a few exceptions. As a rule of thumb, building

materials must be incorporated into the building or site.

• Have a read https://www.gov.uk/vat-building-new-home

Section 106 & Community Infrastructure Levy

• Section 106 exemption

– Affordable Housing Contribution agreed by negotiation

– Charges vary significantly

– Part of government plans since November 2014 and consulted on in Spring 2014

– Some Local Authorities challenged as not a legal right

– Government appealed

– Decision has been made

• Community Infrastructure Levy exemption

– Contribution to flood defences, hospitals, parks etc.

– Fill in form to acknowledge liability and then another one to claim exemption as a bona-fide self builder

– Charges vary significantly

– Liability is timed so if you sell on it will be enforced

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Guide Build Costs

Think about YOUR design

What are you hoping to achieve?

• Motivation

• Dream home

• Step up the ladder

Have you considered your budget?

• Budget is king

• Design to the budget

• Contingency

How long are you likely to live there?

• Is it a home for life?

• Children/visitors

• Adapting to your changing life

• Changing over to a family home

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A question of style and size

• Site location/orientation

• Local vernacular

• Will the external materials impact

on your design?

Natural stone/Slate/Brick/Timber

Wall thicknesses

Roof pitches

• Street scene

• Planning policy/restrictions

• Privacy

Lifestyle Assessment

• What sort of living accommodation

are you after?

• How many rooms?

• Cooking and eating?

• Storage space?

• Where do you spend most of your

time?

• How does the family interact?

• Interaction with the outside world?

• Future proofing – Lifetime Homes

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Contents and furniture

- Modern or antique?

- Will it fit through doors?

- Will the ceilings be high enough?

- Room for circulation

- Floors strong enough?

The garden

- Not an after thought

- Sun rooms/conservatories

- Access/patios/pathways

- Trees/planting/levels

Lifestyle Assessment

Site Planning and Energy Efficiency

• Form is influenced by planning, the brief and site constraints.

• Form can have a significant impact on energy efficiency.

– Plan area

– Configuration

– Average height

– Volume.

• Try and consider…

– Orientation

– Over-shading

– Shelter

– View and Privacy

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Bringing Your Ideas to Life

7.6m

6.5m


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Bringing your ideas to life…


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Site

• Part of a Self-Build development

• Design Guide set materials

• Awkward shaped end plot

• Restricted access

• Surrounded by views of Nature Reserve

Client

• First time self-builders

• House to live in through to retirement

• Open to ideas

• Varied active interests, grown up

family, lots of visitors


KEY

Best views

Window placement

Solar path

Access

Boundaries


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Outline Brief

• Around 200m² Gross Internal Area

(from budget)

• Contemporary, open plan feel, double

height

Ground Floor

• Master Bedroom + En-suite + Dressing

Room

• Open plan dining / Kitchen

• Living area – large

First Floor

• 2 bedrooms with En-suites

• Study

• TV Room


Design Appraisal Meeting

Customer Likes

• Open and flowing Ground Floor plan

• Feature fireplace

• The lounge has a vaulted area with a

balcony above

• Balcony upstairs

• Quieter spaces

Customer Dislikes

• Small canopy

• Chimney position


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An Introduction to Self Build

An Introduction to Self Build

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