A £40m scheme to help people in Wales build their own homes has proved “slower than anticipated” to take off but will open up to help accelerate progress.
Self-Build Wales was launched by Welsh Government at the start of 2020, aiming to make it easier for people to develop their own property.
Housing Minister Julie James said they wanted to “make self-build available to many more people in Wales, not just the most privileged households”.
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While the initial pot was £40m, it was planned that the money would be recycled – giving a £210m boost to the sector.
Under the scheme, Development Bank of Wales offers loans on pre-agreed plots, with them repayment free until the new home is mortgaged allowing people to build their new home and cover living costs.
Local authorities and housing associations are supposed to make plots available with planning and site requirements complete.
But so far there are only two sites under consideration in North Wales – at the former Ysgol Newborough on Anglesey and The Old School House, Llanrug.
Welsh Government says it is opening up the scheme to private land owners to accelerate the provision of sites across Wales.
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Ifan Glyn, Federation of Master Builders Cymru director, said: “I think it’s fair to say that this scheme has not taken off like our members would have liked it to.
“There is substantial demand for self-build plots from prospective homeowners, and builders are on stand-by to deliver.
“The scheme falls down because of the lack of plots coming forward.
“We would urge local authorities across Wales to engage in a meaningful dialogue with Welsh Government to unlock the barriers that are preventing this from happening.
“It would be a real shame if the scheme failed as it has huge potential to help deliver a more diverse housing market, which is much needed.’
A Welsh Government spokesperson said: “We are working with local authorities and registered social landlords to encourage them to provide land to be included in this scheme.
“Progress to date has been slower than anticipated, due in part to the pandemic.
“We are in the process of opening up the scheme to private land owners to accelerate the provision of sites.”
Figures suggest an average self-build house in the UK costs only 70-75% of its final value because no developer profits are involved.
This puts that benefit into the pocket of the homeowner.
At around 10% of new homes the UK has a much lower rate of self-building than other countries around the world.
