The latest figures from BuildStore’s land-finding database, PlotSearch, reveal that more than double the number of building opportunities were snapped up by homebuilders last month than at the beginning of the year, and the database still boasts over 9,000 plots, renovation properties and conversion opportunities. Even in the recession, homebuilding projects are offering people the chance to create a home that they would be unable to afford on the open market, and protect themselves against negative equity.
In partnership with BuildStore Financial Services, Saffron Building Society will provide mortgages for self build, renovation and conversion projects, lending up to 85% of the cost of the land or building to be developed, and 85% of building or renovation costs. Additionally, the funds for the build are released during the project in advance of each stage of construction, providing the homebuilder with a positive cashflow, vital to buy materials and pay tradesmen.
Andy Golding, Saffron’s Chief Executive, comments: “There’s no doubt that homebuilding projects are a very attractive alternative for homeowners in the current market and the opportunity to secure a healthy chunk of equity along with a home designed and built to suit your needs is certainly appealing. Working with BuildStore, we can provide a tailored solution for these types of projects and allow more people to take advantage of the current opportunities.”
BuildStore’s Chief Executive, Raymond Connor said: “There is a great deal of interest in self building, not only because of the benefits it provides in terms of affordability and lifetsyle compatibility, but also because of the affects caused by credit crunch. The negative effects seen in the mainstream housing market and the positive effects on the self build market add up to make homebuilding a very viable alternative to buying on the open market.
“We are delighted to join forces with Saffron to provide funding solutions for self builders. With the right type of finance, homebuilders can capitalise on the availability of cheap land now, before prices start to rise again.”