Families and individuals should get help to build their own homes with the right to buy up state-owned land and access Government-backed loans, a review commissioned by Boris Johnson has recommended.
The Prime Minister asked veteran Conservative MP Richard Bacon to examine ways to boost home ownership by promoting the “custom and self-build” sector, in which housebuyers buy a plot of land and commission a new home rather than purchasing an existing property.
In his report, Mr Bacon warned that the UK risks being divided into “two nations”, with millions unable to buy a home while those who already own property see its value rise and often purchase a second home as a buy-to-let investment.
He claimed new housing can be seen as “pollution” by existing residents of a local area and concluded: “The consequences are that for decades we have not built enough houses – and this is tearing deep fissures into the fabric of our society.” Promoting self-built homes could add up to 40,000 extra properties every year to the national housing stock.
Among the recommendations contained in the review are a “small sites programme” which would encourage local authorities and housing associations to sell off empty plots which are too small for development by a major builder to families who want to build a single house.
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It also calls for a “plot to rent scheme”, reducing the capital required to buy a piece of land by allowing purchasers to rent part of the value of the plot and increase their equity stake over time.
The Government’s planning reforms, which are likely to return to the House of Commons in the coming months, should also promote self-build by relaxing the planning requirements to enable homes to be built on a small scale on the edge of an existing town or settlement.
The proposals were welcomed by Housing Secretary Robert Jenrick, who said: “As we build back better we want to help more people build their own home, making it an option for thousands who’ve not considered it or ruled it out before. This will help get more people on to the housing ladder, ensure homes suit people’s needs whilst providing an important boost to small builders and businesses too.”
Housing policy is devolved in the different nations of the UK but ministers in Westminster are keen to set a template which could be adopted by the other administrations too.
The broader planning reforms proposed by the Prime Minister would divide England into different zones with “growth zones” having much laxer rules than currently with no council veto on individual developments. Supporters fear they will be watered down thanks to fierce opposition from many MPs across the political spectrum.
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