What incentives are there for self-build homes
Are you dreaming of building your own home? At Hanley Economic Building Society, we’re here to help. This article provides you with valuable information on the financial incentives available to support your self-build journey. From government-backed loan schemes to potential VAT savings, discover the resources that can make your dream home a reality. Whether you're looking to build in England, Scotland, or Wales, our guide will help you navigate the options and get started on your self-build adventure.
Financial Resources for Your Self-Build Project:
Help to Build Scheme (England): This initiative provides equity loans to help you finance the purchase of land and the construction of your custom or self-build home. With a minimum deposit of 5% and a self-build mortgage registered with the scheme, you only pay interest during the construction phase. Post-completion, enjoy a five-year interest-free period on the loan, making repayment easier.
Self-Build Loan Fund (Scotland): If you’re building in Scotland, you can apply for a loan of up to £175,000 to cover construction costs. This fund is available until August 2025, with the requirement to repay the loan by August 2026 through securing a regular mortgage or by leveraging equity from selling your previous home.
Self-Build Wales: For self-builders in Wales, loans are available to cover 75% of the plot purchase and up to 100% of the build cost. You need to select a plot from the Self Build Wales website, which lists properties with pre-approved planning for energy-efficient homes ranging from 2-5 bedrooms.
VAT Savings on Self-Build Homes
In addition to these loans, you can reclaim VAT on most materials and fittings for your self-build project, offering substantial savings. Typically, your main contractor might already exclude VAT on eligible parts of the build. However, if subcontractors have charged VAT or if you're unsure about VAT applicability, it’s crucial to learn about reclaiming it. Remember, you have a three-month window to apply for your VAT refund.
