Speaking at the launch of the Build it yourself? Report carried out by the University of York and commissioned by Lloyds, Noakes said a one size fits all approach is no longer acceptable.
He said: We are pleased to announce on the back of the research findings we are fundamentally reviewing what we do in self-build to look at changing the approach which reflects the individual risks that you see in the aspects of that sector. One great example is kit homes.”
Noakes said the construction build time is short and the volatility of the cost of construction is low.
He said: “From a lending perspective that mean that the risks in lending are much lower than they would be in some other aspects of self build. Kit homes are a great example of an opportunity we will be embracing to change the approach to maximum loan to value and to simplify the approach towards stage payments.”
While Noakes admitted that there are issues regarding planning and land access, lending continued to be one of the key challenges.
He added: “The reality therefore is in a risk environment which we deal with today in the lending sector ignorance is a key barrier to entry and there are very few players that really participate.”
The group intends to take the lead in drumming up support from the wider lending community.
He said: “We want to champion this sector and get some of our larger peers to listen to the opportunity and join us and forge a membership in terms of supporting the sector.”
Noakes, in his role as deputy chair of the Council of Mortgage Lenders, will be opening the discussion to its members and sharing the experience that the group has in the self-build sector in a bid to get more lenders to enter the market.
