Help for self-builders through economic uncertainty

As we approach the next National Self Build & Renovation Show on the 13 & 14 October, we look at the incentives available to support self-builders embarking on their next project.

Dropping permissions

The latest data for self-builds in England shows a drop in the number of permissions of 23% to the previous year. Data is published annually by the Department of Levelling-Up, Communities and Housing and is based on council returns for 2021-2022, running annually from 31 October to the next 30 October.

What incentives exist for self-builders?

The National Self-Build and Renovation Centre (NSBRC) says the current economic climate could produce reduced land prices and more plots as developers reduce housebuilding. They also suggest some developers may reduce their land stock, creating further opportunities for self-builders.

The NSBRC also highlights that self-builds are typically worth 25% - 30% more than the land and build cost, potentially shielding builders from the full impact of decreasing house prices. Further potential savings may also be achieved on energy costs because many self-build homes are more energy efficient. Finally, the slowdown in construction activity means that construction workers will be more readily available, meaning projects are more likely to be completed quickly.

Protecting your self-build investment

It's natural to assume that Self-Build Insurance is only needed during a project's "build" stage. Insurance is an essential consideration in offering financial protection during the self-build process.

1. Arranging finance - For those requiring a mortgage to finance their build, many lenders will require a Structural Warranty for the building. Securing the warranty at the start of the project can be cheaper than buying it at completion.
2. Locating a plot - Insurance is available for equipment, materials or fittings in case of loss or damage.
3. Owning land - Public Liability insurance offers builders protection for visitors who might get injured on site.
4. Owning a self-build plot - Site Liability insurance is designed to protect the self-build site from the point of applying for planning permission (including having plans drawn up).
5. The build - Self-Build insurance protects builders, suppliers, materials, tools, plant and machinery, all potentially on-site. As work progresses, it will provide insurance cover for the part-built structure itself.
6. Moving In - Self-Builders should obtain a Completion Certificate and consider having Buildings and Contents insurance in place and removal insurance for the move.
7. After completion - A Structural Warranty is designed to protect against the cost of complete or partial rebuilding or rectifying work to the house due to defective design, workmanship or materials for ten years.

With decades of experience in insurance for self-builders, SelfBuild Insurance offers comprehensive protection for a wide range of self-build and renovation projects. Call SelfBuild Insurance on 0800 230 0225 for further information or a quote.