BuildStore has called for £1 billion from the Funding for Lending scheme to be earmarked for self builders.
Under the scheme, the Bank of England will lend money to financial institutions at below-market rates to stimulate lending to homeowners and businesses.
The self build and renovation specialist claims that lending to the self build community is apposite, creating a “positive ripple effect” through the home economy, helping not only homeowners but employment at a local level as construction workers would be called upon to meet the demand for bespoke homes.
It argues that for for every £1 million lent, six new homes could be built. And, with the average self build project taking a team of five construction workers a year to complete, the number of jobs created could total 6,000 for each £1 billion lent.
“The benefits of allocating £1 billion to the self build sector would be money wisely spent; there is no down-side,” said Raymond Connor, chief executive of BuildStore Financial Services.
I am directly appealing to [housing minister] Mr Shapps to join forces with self build groups while he has the government’s attention on this issue, and to encourage lending institutions to allocate funds in this way. The demand is clearly there for self build so let’s get the money aimed where it can do most good.”