It attributes this growth primarily to a higher profile in the media and the Government’s new proposals for supporting and growing the sector.
While the wider UK mortgage market has yet to show any significant signs of recovery with further contraction predicted in 2012 to £127bn, the self build sector has been hailed as ‘one to watch’ and is expected to be one of the best performers in the mortgage market over the next five years, according to the Datamonitor report.
As well as doubling in size, the self build finance sector is also predicted to take share from the overall mortgage market, potentially representing over 1% of the UK residential mortgage market.
Commenting, Raymond Connor, chief executive at BuildStore Financial Services, said: “The predictions made in the Datamonitor report are in line with our own expectations for the performance of the self build market.
“As we have continued to grow our lender panel and introduce exclusive self build mortgage products, our finance enquiry levels throughout 2010 remained strong with a 25% increase in mortgage completions the last six months of 2011 as compared with 2010.
“The appeal of the self build or ‘Custom Home Building’ market is attracting more homeowners, and its potential to provide more quality homes has also attracted support from mortgage lenders and the Government. Through its new Housing Strategy, the Government has made a commitment to get the housing market moving again, particularly in respect of the supply of new homes and is intent on ensuring that the potential of the self build market is realised.
“As new reforms and policies come into force over the coming months we expect to see a real shift, especially in terms of using self build to provide homes on a larger scale as part of community developments.
“Self build is an affordable housing option, with the added appeal of control over the design and specification of your home – it is rightfully placed to become a mainstream housing option in the near future.”
