To many, it’s a firmly held belief that self and custom-build appeal to more established homeowners or those who simply don’t want to follow the more traditional path.

We surveyed more than 2,000 consumers from the UK, half of which had considered or would consider custom-building their own home*. What really stood out in our research though was the level of interest from younger people who are exploring alternatives to the traditional house-buying route. In fact, 64% of 18 – 24 year olds said they would consider or have considered custom-build, compared to only 21% of those over 55.

What’s the attraction for the younger homebuyer?

It’s no secret that the younger generation are currently facing huge hurdles in the housing market. Between high property prices and the lasting impact of the cost-of-living crisis, buying a traditional home feels out of reach for a lot of people. In fact according to HomeOwners Alliance, 1.9 million aspiring homeowners don’t believe they’ll follow in their parents' footsteps to own a home.

For this generation, it’s about finding value and getting exactly what they need, rather than compromising on a property that doesn’t fit their desired qualities. They’re looking for control and flexibility, and custom-build offers that in a way that the mainstream market often doesn’t. This trend is likely to keep growing as more young people see custom-build as a realistic and appealing option.

There’s more work to be done

Despite this level of interest, there’s a need for more education on custom-build. We found that only 39% of 18-24 year olds actually know what it involves, and 28% of potential buyers say they’d be more inclined toward custom-build if they just had more information.

A lot of people think it’s like self-build, where they would be in charge of the entire project, but that’s not the case. Custom-build takes away a lot of the hassle, and buyers get the home they want without needing to manage all the details.

There’s a lot of demand here that could be unlocked with the right guidance and awareness.

How the broker can help

Context is key, so brokers who are unfamiliar with custom-build should start by understanding how it’s financed. Unlike traditional mortgages, custom-build mortgages are released in stages as the project progresses. Typically, the first payment will be for the plot, with the remainder at pre-agreed stages throughout the build. This set-up is designed to manage risk and match the cash flow with construction, which can actually be quite reassuring for both the lender and the client.

Again, for those brokers who are relatively new to custom-build, they can add real value by building their confidence in how it works, they have a crucial role to play in guiding clients through the process and helping them understand the different options available. For example, introducing them to the Right to Build register, which allows individuals to express interest in a serviced plot within their chosen local authority area, simplifying the land acquisition process. With a solid understanding of these aspects plus custom-build products and local regulations, brokers are well-positioned to fully support clients on this journey.

For more information, guides, and links to our podcast specials on self and custom-build, visit the resources page of our web site; https://www.saffronforintermediaries.co.uk/self-build-resources.

*Research conducted among a sample of 2,004 UK homeowners/people aged 18+, a mix of those considering and not considering purchasing a new home. Data collected between 18.07.24 and 22.07.24.

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