25th February 2021

The 8th edition of the Self Build Housing Market Report – UK 2021-2025 contains analysis of the key influencing factors, recent market trends, regional analysis of self build opportunities and market prospects into the medium-term. This report contains original input and a detailed assessment of the market and represents excellent value for money to companies in the industry or considering entry.

The self-build market is part of the larger overall UK housebuilding sector which is defined as the number of dwellings built in the United Kingdom and includes all private sector, local authority and housing association properties. Self-build (including custom build) is housing built by individuals or groups of individuals for their own use.

Analysis indicates that self-build completions in 2019-20 were estimated to account for around 7-8% of overall completions but accounted for around 12% of total housing output. Since 2015, there has been steady growth in self-build completions, from around 11,800 to approximately 15,100 in 2019.

With the increasing focus on climate change and the government’s pledge to cut ‘greenhouse gas’ emissions to net zero by 2050, self-build offers the freedom to create homes which are energy efficient and sustainable, from recycled construction materials to the latest energy efficient technology.

Although impacted by the pandemic it is estimated that the decline in self-build completions in 2020 will be less than for the overall housebuilding market, falling by around 8% to reach approximately 13,900. This is because of the scale of self-build with smaller sites more likely to remain open during lockdown and the smaller nature of self-build sites making it easier to social distance as there is fewer people onsite. Offsite methods of construction commonly used for self-build, such as timber frame and SIPS, are also more conducive to Covid-19 safety measures such as social distancing.

Our feature on Marketing to the Custom and Self Build Sector provides an overview of the market
and details of the supply chain, media & events. It can be accessed from the Sectors area of the Directory.

Self-build demand in the UK varies significantly dependent on the location, the level of available plots does not necessarily reflect the population therein. Alex Blagden, Senior Market Research Analyst at AMA Research, comments, “There is a strong disconnect between where people want to self-build and where there are sufficient numbers of available sites. There is a relatively larger number of applications for self-build projects in the Home Counties and the South West compared to the numbers of available sites. In contrast, the highest number of sites available for self-builders are in the Highlands and Grampian areas of Scotland, Northern Ireland and the South West but these areas attract a relatively smaller number of applications.”

In 2020, the government announced a review of self-build housing, including reviewing the effectiveness of the Self-build and Custom Housebuilding Act 2015, to make it easier for people to build and commission their own homes by encouraging councils to grant planning permissions for projects. This includes £2.2 billion of new loan finance to support house builders, which includes: delivering a new Help to Build scheme for custom and self-builders; funding for SME housebuilders and Modern Methods of Construction (MMC); £100 million of funding to support, among other things, the release of public sector land, including serviced plots for self and custom builders.

Confidence remains a key factor which can affect not only the value of self-builds but also the types of construction and finishing materials used. Whilst some potential self-builders may choose to defer projects until economic times are more certain, the self-funded self-builder is more than likely to continue with plans for their project regardless of the current economic uncertainty.

Residential land values vary considerably across the UK and have become increasingly polarized between higher the very high levels in the South East and the rest of the UK. For the most part, variation in land costs is related to the availability of self-build plots within key areas.

Over the next few years to 2024, the growth of this market will be greatly affected by how long the Covid-19 pandemic lasts and how quickly the economy, and the construction industry in particular recovers. Although the Government has recently announced additional support for self-build, the issue of appropriate and sufficient finance remains a key factor determining the future value of the market.

The Self Build Housing Market Report – UK 2021-2025 is available now and can be ordered here.

Construct UK has negotiated a 10% discount for all subscribers when ordering construction market reports from AMA Research.
Please use the dedicated code constructuk10 when placing your order on the AMA Research website.

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