£25million Self and Custom Build Fund launched by OPE
One Public Estate has opened its up to £75 million Brownfield Land Release Fund, with a £25 million allocation for self and custom build for sites on both brownfield and greenfield sites.
Originally announced in the Spending Review 2020 by Chancellor Rishi Sunak as part of the National Home Building Fund, the Brownfield Land Release Fund (BLRF) is a capital grant fund aimed to support housing delivery. It enables local authorities to bring forward surplus land in their ownership for housing development, and the land in question must be wholly owned by the public authority.
The Land Release Fund programme supports those small sites in local authority ownership that have been prevented from coming forwards for housing due to viability issues. The fund is proven to have the ability to bridge this gap, and bring more sites forwards for housing. While the wider BLRF is only for brownfield, it is important to note that the Self and Custom Build Fund is also available on greenfield sites, which the Task Force welcomes.
All English authorities are eligible, with the exception of Mayoral Combined Authority areas that previously had the opportunity to receive funding under the £400m Brownfield Fund.
The BLR fund aims to:
- Release local authority-owned land by the end of March 2024* for housing development that otherwise would not come forward in this timeframe
- Encourage the use of public assets to drive innovative delivery, through SME support, bespoke delivery models, high-quality design and modern methods of construction
- Demonstrate a return for government investment into these small sites
- Enable schemes to deliver within the funding timescale
*Release of land for self and custom build plots is the point at which disposal of the first plots takes place
Sites are expected to be up to 250 homes in most cases, with the funding providing capital for a variety of issues that impact viability, including:
- Site levelling, groundworks, demolition
- Provision of small-scale infrastructure
- Highways works or other access challenges
- Addressing environmental constraints, and more
The self and custom build fund
Beyond the release of land for housing, the BLRF self and custom build funding has specific aims, including to provide exemplars to the delivery of serviced plots that can be replicated, that encourages wider delivery.
The prospectus sets out that these sites must demonstrate a return for government, and be deliverable in the fund’s timescale. For self and custom build this equates to the sale of the first plots for housing by end March 2024.
Specifically for this aspect of the fund, grants should address viability issues and market failure in bringing forward serviced plots. Examples of such issues that the fund may be used for could be:
- Site levelling, site preparation, groundworks
- Provision of small-scale infrastructure
- Highways works or other access challenges
- Addressing environmental constraints
- Providing services to plots, and more.
Applications need to meet the Gateway Criteria for the relevant area of the Land Release Fund, including meeting a threshold of a score of 1.5 for Benefit Cost Ratio, plus non-monetised benefits.
Interestingly, for self and custom build there is also a score for innovation, a reflection of the diversity of the model. See the prospectus for details.
The deadline is tight to secure the funding before the summer recess of parliament, with a submissions deadline of 2 June, with announcement of awards over the summer.
To support the application process, One Public Estate is running two workshops for local authorities, with sign up on Eventbrite:
- 10am, 28 April: Overview and Bid-writing Workshop
- 3pm, 29 April: Self and Custom Build Workshop led by the Right to Build Task Force
Mary Elkington, Acting Head of the Right to Build Task Force, said: “It is fantastic that the Brownfield Land Release Fund includes this £25 million allocation for self and custom build, and we encourage as many councils as possible to apply. This will make a genuine difference to those authorities working to deliver a more diverse route to delivering high-quality housing.
“Support for replicable exemplars of this innovative route to housing helps in scaling up custom and self build. These sites will help showcase the wide range of benefits that custom and self build can deliver, complementing wider housing delivery.”
One Public Estate (OPE) is a partnership between the Office of Government Property in the Cabinet Office (OGP), the Local Government Association (LGA) and the Ministry of Housing, Communities and Local Government (MHCLG).
Custom and Self Build Action Plan launched
Government has launched a detailed Action Plan to boost activity around custom and self build, including a £150 million Help to Build consumer finance scheme.
Designed to kickstart a self build revolution, the measures reflect government's confidence in the route and its role in diversifying housing, and its support for SME housebuilders.
The Custom and Self Build Action Plan:
- A review to establish a plan to grow self and custom build homes, commissioned by the Prime Minister
- A review of the Right to Build legislation to make it more robust
- The Self and Custom Build Land Release Fund for local authorities to bring forward plots on land they own
- Funding for the Right to Build Task Force (www.righttobuild.org.uk) so we can continue to support local authorities in England around around delivery and policy
Government also allocated £2.1 million to help communities decide where they want new homes, shops and offices to be built and what they should look like.
For a detailed look at the different elements of the Action Plan, visit NaCSBA's news page.
Monitoring of Custom and Self Build Data Returns
As part of compiling housing and planning data returns to MHCLG, local authorities are currently preparing their data responses for the Self-build and Custom Housebuilding (SBCH) form. This covers data on self build registers, plots permissioned, and progress on policy and actions to support custom and self build.
The Right to Build Task Force is in a unique position of having in depth knowledge around the sector and in working with LPAs across the country. To support LPAs with questions around custom and self build data, the Task Force has published a new note: Monitoring of Custom and Self Build Returns Clarifications
This includes clarification around:
- Removals from registers
- Qualifying permissions
- Guidance on policies to promote and facilitate self-build
The note is freely available, and is designed to support local authority activity.
New Planning Guidance Note
As well as the data returns guidance above, the Right to Build Task Force has added to the latest in its suite of planning guidance to the website. It welcomes any feedback on these notes - send your comments via email.
PG3: Provision of Affordable Housing, Including Exception Sites is now available. This is especially timely following the recent update to the national Planning Practice Guidance, that reiterates that custom and self build can be affordable housing.
New Essentials Note: Finance
In addition, a new Essentials Advice Note has also been uploaded: Finance Options for Custom and Self-build, setting out a range of finance options for individual custom and self builders. This will be updated again following the launch of the Help to Build scheme.
Consultation Response - NPPF & draft National Model Design Code
The Right to Build Task Force has submitted its formal response to the National Planning Policy Framework (NPPF) and the draft National Model Design Code consultation.
Responding on its own behalf, and also of that of the National Custom and Self Build Association, the response puts forward the need for more and clearer references to custom and self build.
With regards to the National Model Design Code, it stresses the strong links that the sector has with design codes and plot passports. As in Europe, these are frequently used to successfully shape the parameters around development. This can help allay concerns that communities, neighbours and planners may have about the quality and appearance of self and custom builds.
However, the consultation takes care to piont out that while the Task Force endorses design codes, the risk must be acknolwedged that poorly set out design codes can be proscriptive rather than progressive. Consequently, these need careful thought to avoid unintended outcomes being used to limit the quality or innovation of new development emerging.
Used well, Design Codes hold the key to creating vibrant new communities that have the potential to be treasured future neighbourhoods, rather than carbon copies of mediocre housing. Key to this is community engagement, especially in rural communities, where community led housing and custom and self build can provide valuable, and welcome, new housing.
Planning Practice Guidance on self-build and custom housebuilding updated
The Ministry of Housing, Communities & Local Government has published an update to the Planning Practice Guidance (PPG) on Self-build and Custom Housebuilding. This is the first update since the legislation was passed in 2016, and clarifies and strengthens custom and self-build from a planning perspective.
The guidance sets out ways in which the April 2016 legislation (previously updated in July 2017) is implemented in practice, with suggestions for who local authorities can work to fulfil the duties placed on them.
Helpfully, the guidance now recognises the spectrum of projects that can be custom and self-build. The update also confirms that:
• the off-plan sales of homes is excluded from the definition of custom and self-build,
• custom and self-build can have role as a route to affordable home ownership,
• the Community Infrastructure Levy (CIL) exemption can be applied to multi-unit and communal schemes,
• self-build registers are more likely to be a material consideration in planning matters, and
• councils must consider the demand the registers represent, more robustly, and make better use of data to support decision making, including using demand assessment tools.
The update also touches on the role of public land in bringing on sites together with improved rules around planning policy and custom and self-build registers.
In addition, new data around the Right to Build registers has been published, which adds to the body of evidence around demand and activity.
Mary Elkington, Acting Head of the Task Force, said: “It is now five years since the Right to Build legislation came into effect and we are starting to see its impact, with registers helping to open new and more diverse options for providing high quality housing. This guidance update is a welcome strengthening of the tools that planners have to support delivery and increase capacity.”
The Right to Build Task Force's own Planning Guidance for Custom and Self Build has now been fully updated to reflect the amended PPG amendments.
The Right to Build Task Force will also be publishing a short paper about the guidance and the data.
Chief planner singles out custom and self-build in newsletter
Chief Planner Joanna Averley gave an update on the valuable role that custom and self-build can have in meeting wider housing strategy goals.
In the February newsletter to chief planning officers she sets out how custom and self-build can support greater housing diversity by giving more people more choice.
“Self and custom builders are well placed to build high quality, well designed homes that are energy efficient, accessible, affordable and welcomed by their communities.”
Averley reiterated government’s commitment to the sector, referencing recent initiatives:
• a review of the Right to Build legislation, and whether it is having the desired impact in supporting delivery,
• an update to the Planning Practice Guidance for self-build and custom housebuilding, and
• a commitment to publishing the data returns filed by local authorities when reporting on self and custom build locally.
Importantly, she emphasised the role the Right to Build Task Force has in providing free introductory workshops for English authorities to support custom and self-build delivery, funded by the Ministry of Housing, Communities & Local Government. Over the past 12 months the Task force has provided bespoke briefings to more almost 40 local authorities.
Mary Elkington, Acting Head of the Task Force, said: “The Task Force’s role in building capacity in custom and self-build delivery is strengthened by the funding from MHCLG, meaning that it has national reach that can really make a difference at a local level.
“The Task Force is well positioned to support this activity at a local authority level, whether with an MHCLG-funded introductory webinar or by more targeted consultancy support. The Chief Planner’s comments supports this activity, taking our message directly into the heads of planning across the country.”
Online Right to Build workshops - free of charge for local authorities
The Right To Build Task Force can now offer a tailored workshop, free of charge, to each local authority in England. These workshops help councils understand and take action on self-build and custom build housing, in line with their statutory duties.
The workshops are funded by MHCLG and are delivered online, usually via Zoom. A bespoke session is prepared for each authority, by an expert and is tailored to the specific needs of that organisation. They can cover topics like different development models for custom and self-build with rural and urban examples, how to monitor permissions in line with the legislation, insight from recent appeal decisions, examples of good policy practice and what other councils are doing to bring forward custom and self-build housing. Webinars are 2.5 hours long (which includes discussion and Q&A) and should be attended by elected members as well as officers from housing and planning.
For more information or to book, please email us.
One in three people are interested in self-building, finds new research
New research into self-build aspirations found that one in three people are interested in building an owner commissioned home. However, despite more specialist mortgages being available in the market, access to finance remains the biggest barrier to most people progressing to build.
Commissioned by the National Custom and Self Build Association (NaCSBA) and the Building Societies Association (BSA) the research marks Right to Build Day on 30 October, the annual close of the self-build registers
The survey asked people about their homes, and found that experiencing lockdown in 2020 had made:
- 48% want more space in general, with 36% wanting more indoor space and 37% more outdoor space
- 39% want a home office space
- 31% consider home improvements as a result of lockdown
- 5% consider designing and building their own home
With regards to custom and self-building
- Nearly a third of GB adults (32%) said they were interested in designing and building their own home.
- 9% of people said they were likely to build their own home at some point in the future - this compares to around 5% of new homes currently being built as custom and self-build annually.
- The younger generation were most keen, with nearly half (48%) of 18-24 saying they were interested in self building. This decreased with age, with less than 1 in 5 (18%) over 55s interested.
- 74% said the main benefit of a self-build is the ability to design a home to their exact specifications, while half said the ability to build a home that adapts to meet their current and future needs was important.
- For most, the biggest barrier remains finding the money to finance the project, (59%). People also said the following were issues that would keep them from building: 49% said planning permission; 47% said lack of knowledge; and 42% said finding a plot.
- In terms of energy efficiency, self-build offered a route to a greener future, with a third of people wanting to live in a home that had less impact on the environment.
- Nearly 9 in 10 people (89%) said energy efficiency was important, were they to build a new home.
NaCSBA and the BSA welcomed the news that almost a third of those surveyed said they were interested in having a house built to their own needs and specifications.
However, the data shows that it is the youngest generation of 18-24 who are most interested in self-building (48%), but it is this age group that tends to have the least amount of savings and less earning potential due to their age. This marries with the perception that financing the build project is the most significant limiting factor preventing people from self-building. 59% cited this as the most significant barrier.
To help meet the deposit gap, the 2019 Conservative party manifesto promised that the Help to Buy scheme would be extended to the sector, which NaCSBA continues to push for. Having a smaller environmental impact was also a key factor behind the ambition to self-build, with a third (33%) of people identifying it as a core benefit of building a home. Almost 9 in 10 (89%) of people said it was important that their newly built home was energy efficient, when asked to envision building their own home.
Housing diversification is a core part of the Government’s wider housing strategy, as England has the lowest known rate of self-commissioned homes in the world. The Right to Build legislation requires councils to grant sufficient planning permissions to match the demand evidenced on their registers. However, despite legislation in 2015 and 2016, the survey found that 83% of people had never heard of the registers held by local authorities of people who would like to build their own home.
NaCSBA urges all those looking to self-build to sign up to their local Right to Build register via www.righttobuildportal.org.
Andrew Baddeley-Chappell, NaCSBA’s CEO said, “The current lack of choice in our new homes market makes it different from every other country and every other consumer market. Only when there is diversity of choice will we get the diversity of homes that we want and need.”
Paul Broadhead, Head of Mortgages and Housing at the BSA said, “It’s great to see that there are so many aspiring self and customs builders, particularly among the youngest generation (18-24yrs). Increased levels of home working this year have led many to realise the importance of future proofing their homes to suit their individual needs. Mutual lenders are leading the way to help these self-build dreams become a reality, with 21 building societies currently lending to people building their own homes, they are the clear choice for many and are leaders in this space.”
Building societies offering self and/or custom build products:
|Bath Building Society||Beverley Building Society|
|Chorley Building Society||Darlington Building Society|
|Buckinghamshire BS||Earl Shilton Building Society|
|Dudley Building Society||Furness Building Society|
|Ecology Building Society||Ipswich Building Society|
|Hanley Economic Building Society||Mansfield Building Society|
|Loughborough Building Society||Penrith Building Society|
|Melton Mowbray Building Society||Saffron Building Society|
|Progressive Building Society||Scottish Building Society (Scotland only)|
|Stafford Railway Building Society||Swansea Building Society|
|Vernon Building Society|