Saffron for Intermediaries has announced its support for NaCSBA’s new report on the custom and self build market, which argues that a lack of self-commissioned homes is severely restricting the UK housing market.

According to NaCSBA, self-commissioned homes only amount to 7% of the UK’s housing supply, compared to a 40% share in similarly developed countries, highlighting the untapped potential in supporting the UK government’s housebuilding targets. NaCSBA research also highlights that the custom and self build sector produces housing that is greener, better built, and more supportive of local economies than comparable speculative housing.

Additionally, the report reveals that demand for self and custom build – as measured by the Right to Build Registers – is being severely underestimated. Local authorities assess, and must grant, suitable planning permissions or permissions in principle to match the demand shown by the Registers.

According to the report, from 2019 to 2022, the number of people actively engaged in considering self- build was at least 83,000 by independent objective measures. In the same period, the number of people joining Right to Build Registers was just 29,697, an undermeasurement of 64%. If demand is not accurately reflected, a lack of building plots could become a key bottleneck in building self-commissioned homes.

Alongside a shortage of plots, a lack of finance and poor education all contribute to the ineffective policymaking currently restricting the growth of self and custom build. NaCSBA has developed guidance for future policy development, which it recommends the government adopts in order to address these roadblocks. NaCSBA guidance is as follows:

• Per home policies should be no more time consuming or costly than for a larger development.
• Policies must not introduce relatively more delay or uncertainty into the self build process (for example, through reliance on scarce skills).
• Policies must not result in solutions or options that the self builder would be unable to access, in a way that was unfair.

Tony Hall, head of business development at Saffron for Intermediaries, said: “Saffron is proud to be a member of NaCSBA, and to be supporting its report addressing the critical need for more self-commissioned homes in the UK housing market. We know that many UK residents are keen to explore building their dream homes, and today’s findings show that this is being underestimated on many levels.

“This shortfall not only risks limiting available land for self-commissioned homes but also limits the growth of a sector known for producing greener, better-built residences that contribute positively to local communities. At Saffron, we are committed to playing our part in this by offering adaptable solutions that help those looking to build or design their own homes, as part of our broader mission to support borrowers who don’t necessarily fit the traditional borrower profile.”

Peter Johns, CEO, NaCSBA, added: “This report is the latest milestone in NaCSBA’s mission to create a thriving self and custom build sector that can support the UK’s housebuilding ambitions. The benefits of encouraging self-commissioned housing are clear, and while progress has been made in recent years, it is important for us to address challenges in the sector now so it can reach its full potential. We welcome Saffron and all our members’ support in this goal, and look forward to working together to drive change in this area.”

The full NaCSBA report is available here.