Potential self-builders unaware they can borrow to buy land, study reveals

Over two thirds of potential self-builders (69%) do not know that mortgage lenders will allow them to borrow to purchase land where planning permission has been granted.

This is according to research from Suffolk Building Society, which also warned that concern over financing a project was the number one barrier for those interested in self-build. Other concerns cited were around seeking planning permission and difficulties in finding suitable land.

Suffolk’s research was based on a study among 2,000 UK adults and the society has suggested there is a lack of awareness about being able to borrow for land may discourage people from considering self-build.

The research found that over half (54%) of those who are considering a self-build project in the future believe that self-build is reserved only for the “very wealthy”.

Chief executive at Suffolk Building Society, Richard Norrington, said: “Self-build television series undoubtedly make for great viewing, but they do set the bar remarkably high. One could easily assume that self-build is only for those with unlimited time and deep pockets.

“Self-build is considered a fairly standard route to homeownership in countries such as Hungary, France, and Sweden, and with better education and awareness from lenders, brokers and the industry as a whole, self-build could become more mainstream here in the UK too.”

The society also highlighted that the cost of living crisis has failed to significantly dampen people’s appetite for self-build, finding that a third of people are still considering self-build – which is only a small decrease from 35% last time the survey was undertaken in July 2020.

Of those considering self-build, 31% of respondents said they would prefer to go for a completely new build, 27% said they would opt for a knockdown or rebuild project, while 21% said they would undertake a major renovation to an existing property.

“As a country, we need to normalise self-build, encouraging regular people to build good homes, thus helping to reduce the housing shortage in the process and improving the collective carbon footprint of our housing stock,” Norrington added.

“There are undoubtedly more hurdles in this process than in a standard house purchase – particularly at the moment with high labour and material costs. However, being able to design a property that meets your needs both in terms of function and aesthetics is hugely rewarding.

“We would like more people to know that some lenders are ready and willing to lend on land as well as for the build itself, and secondly, that self-build is more accessible than they might have previously thought.”



Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.