Summary

In order to positively enable schemes to come forward, councils will need to be directly involved in projects and initiatives to bring custom and self-build (CSB) homes forward by intervening in the market to make more land available, bringing forward pilot schemes, making funding available and building capacity and knowledge within planning teams and amongst elected members.

Making more land available

An important barrier holding back CSB projects is land availability, particularly the availability of ready to develop ‘serviced building plots’ which Government legislation and planning policy is seeking to address. Councils have the ability to address this challenge directly by intervening in the land market. Such interventions include the disposal of council-owned land to developers who can deliver such forms of housing or servicing land to sell plots to the public or communities; the acquisition of suitable land to convert into developable housing land; and/or entering into joint ventures or option agreements with developers or landowners to bring serviced building plots forward for CSB housing. This is already happening in the UK and is a common delivery model in other countries. Plots which are made available by councils could, for example, be marketed to those on Self-Build Registers in the first instance. Councils could also work with specialist custom build developers, willing landowners and housebuilders to maximise delivery opportunities wherever these arise.

Councils could also support ‘local refurbishment’ opportunities of empty buildings as some councils are doing in the Netherlands, for example.

Furthermore, local authorities could also seek to engage proactively with Homes England to explore suitable opportunities on public land or the scope to enter into a joint venture if the right conditions are in place. This would align well with Homes England’s wider remit set out in its Strategic Plan 2018 to 2023.

Pilot projects on public land

A key way to maximise opportunities of future CSB housing projects is to bring forward one or more pilot projects. Successful pilot projects can be a powerful stimulus for future investment and showcase for success, which is why local authorities are increasingly seeking to identify such opportunities (eg York and Durham). This could be either on a strategic site, a privately owned site or on land owned or controlled by Homes England. A range of procurement and development models are available to bring such projects forward.

Financial support

Councils could also seek to provide financial support to community-led housing and/or enable purchases of council-owned serviced plots to benefit from deferred payments on the land until their development is completed, which would assist with cash flow (also known as Build Now, Pay Later).

Another mechanism being investigated by some councils is the use of planning obligations to secure payments in kind on larger sites to assist with creation of serviced building plots on council-owned land for the benefit of local communities or people signed up to Self-Build Registers. Although councils would need to ensure that they have a robust evidence base and policy to secure such obligations, which are supported by the duties set out under the Right to Build legislation.

It is important that councils develop a good understanding of the typical financial challenges individuals and groups face and the way funding is currently provided. Councils could engage with organisations such as BuildStore to facilitate discussions with local lenders and incorporate them into discussions with landowners or developers. Councils could also seek to develop partnerships with lenders and potentially act as a mortgage guarantor for those on lower incomes who need a mortgage to fund their build.

Councils could also consider establishing a modest ‘revolving fund’ to help bring forward serviced building plots or land to support group projects. This approach has been used in the UK and helps councils to buy land, which they can then sell as serviced plots (with the income from the sales being recycled to enable additional opportunities).

Capacity building

Local authorities can further develop in-house knowledge of CSB housing and gain greater understanding of how this form of housing could be facilitated by elected members and officers, for example through an internal Task Group comprising officers and elected members. Councils could establish an in-house advisory facility for custom and self-builders who are looking for land. As part of this, councils could, for example, run an open workshop with people on the Register to coach them to find suitable plots.

Local authorities can work with local landowners and agents to identify local opportunities. This could be achieved through some of the actions set out above, including through the development management process when larger projects come forward and are discussed at pre-application stage.

Maximising opportunities

In order to maximise the above opportunities, councils may wish to consider a ‘package’ of actions that support CSB housing. This could be structured around an Action or Delivery Plan which sets out a series of objectives and related actions with clear timelines for delivery.