What is the Help to Build Scheme?


On the 27th of June, applications opened for the UK government’s newest housing initiative, the Help to Build Scheme. Already, thousands of applicants have made the first step towards building their ideal home. The housing market is a hot-button issue in the UK, with prices rising higher than ever. It seems impossible to get yourself onto the property ladder, but perhaps it’s not with the new Help to Build Scheme.

But what is the help to build scheme and are you eligible for it?

In this article, we will be exploring the scheme and reviewing what you need to do to start building your dream home through it.

What is the Help to Build Scheme?

The Help to Build Scheme is a government-funded scheme, much like Help to Buy, which focuses on offering an equity loan of between 5-20% of land and housing costs. The government has backed the scheme with £140 million in funding, making it an option for a lot of UK residents trying to get on the property ladder. The loan is calculated by the rough costs of buying land and building your home on it.

If you’re eligible, you can get up to £600,000 to spend on constructing a new home. However, this loan has to cover the following things, including:

  • Cost of land (if not already owned when applying for the scheme)
  • Construction costs
  • Any additional costs

Who can apply for the Help to Build Scheme?

Many people are eligible for the Help to Build Scheme, in fact, everyone who is over 18 and has a right to live in England can apply for the scheme.

You also must live in the newly built home and secure a self-build mortgage from a lender registered to the Help to Build Scheme. Many lenders are registered with the scheme, but it is important to check this beforehand.

However, you can be deemed ineligible for the scheme if you have received funding from another loan such as Help to Buy in the last two years.

What are the advantages of the Help of the Build Scheme?

The housing minister for the UK, Stuart Andrew, has said that the scheme will “break down barriers to homeownership”, as it could allow thousands of people to get onto the property ladder. The Help to Build Scheme has multiple advantages. These include the control that you will have over your home and being able to make the decisions regarding the construction. This will lead to more diverse property across the UK. As well as this the scheme can help you get onto the property ladder, which as we know is increasingly difficult as time goes on.

However, the scheme is fairly new and is still in its early stages. The director of property science for Rightmove says that “the challenge will be finding the land to buy and build on” as well as “getting the necessary planning permissions and mortgages”.

Things to consider when applying to the Help to Build Scheme

Ultimately, your loan is the main thing you will be thinking about when applying for the Help to Build scheme but you should also consider what equipment and services you are going to require during the construction process. Prior to entering the agreement, really consider and weigh up whether this is the right idea for you, or if Help to Buy might be the better option.

Here is a short list of some of the things you should consider when applying:

  • What materials are you going to need?
  • What equipment will you need? I.e a forklift rental
  • Will constructing a house fit your lifestyle?
  • Do you have adequate knowledge of self-building to construct your home?

Ultimately, the government’s Help to Build Scheme is a good choice for those who felt that building a home was out of reach for them. The scheme could make this a reality for them and help to fund their ideal home.

Final take-

Ultimately, the Help to Build Scheme is a new and upcoming scheme that aims to help people get on the property ladder. As it’s still in its early stages, we cannot attest to its success. However, with the right equipment, tools and mindset, maybe building homes will be the solution we need to the property crisis in Britain.