What is self-build and custom-build?
What is self-build?
Self-build in Scotland refers to the process of individuals or groups designing and constructing their own home, rather than purchasing a pre-existing property. In Scotland, self-build projects are subject to the same planning and building regulations as any other new home construction project. 125Architects are experienced self-build architects with a track record of delivery of award winning new homes. We can advise you how to turn your aspirations into reality.
What is custom-build?
Custom build, sometimes referred to as ‘self-build on serviced plots’ is a type of homebuilding where individuals or groups work with a developer or contractor to design and construct a home that meets their specific needs. This is different from traditional homebuilding methods where the buyer chooses from a limited selection of pre-designed floor plans and finishes. Custom-build allows the buyer to have more control over the design and layout of their home, and can include using sustainable building methods and materials. In the UK, custom-build is a way of providing people with more choice and control over the design and delivery of their new home, as well as a way of encouraging innovation and diversity in the housing market. Custom-build has the potential to disrupt the marketplace currently owned by corporate developers, and is a way whereby smaller independent developers can innovate to differentiate themselves.
Many prospective self builders are shocked to learn that the highest quality volume housing built in Scotland currently, is built by Housing Associations for social rent, in the absence of profit driven agenda. The middle classes pay significantly more for vastly poorer quality homes built by corporate private developers, all over the UK.
Custom-build can be more restricted than a self build route. Custom-build can often, for example include building a home on a plot, which is a part wider development built by the same developer but where there are some constraints or ‘masterplan rules’ that must be adhered to in the design of the home on the plot. Equally it offers significantly more owner input that the typical volume house-builder development.
Perceived benefits of custom-build are:
You can customise your home, layout and finishes.
A developer will build the project, take care of arrangement of all trades and sub-contractors.
The plot will already have planning permission of some description, be it outline consent or full permission. This can affect the overall flexibility of the design since it will form part of a wider development, but equally far less than buying off the shelf houses from the volume house-builder marketplace.
There is less work involved for the individual with a custom build home.
Is custom-build as widely available in Scotland as it is in England?
Custom-build is not as widely available in Scotland as it is in England.
In England, the government has made a commitment to increase the number of custom and self-build homes, and has implemented a number of policies and initiatives to support this goal. In Scotland, while custom-build is also encouraged, and some local authorities have begun to offer serviced plots for custom-build, it's not as widely available as in England. 125Architects believe this is an area where the Scottish Government must improve and seek to make land available, specifically to smaller independent developers. This has the potential to improve the quality of housing available for sale in the private marketplace and offer greater choice to the consumer.
Equally, the Scottish Government has announced their ambition to provide more opportunities for people to build their own homes, and to increase the number of self-build and custom-build homes. The government has recently launched a number of initiatives and funding programs to help support this goal, and more opportunities for custom build may be become available in the future.
This area is constantly evolving and it is worthwhile speaking with your local authority for any information they may have available on custom build plots within their constituency.
When did the Scottish Government announce its ambition to provide more support for custom build?
The Scottish Government announced its ambition to provide more support for custom build in its Self-build and Custom Housebuilding Policy Statement, published in 2016.
The statement set out the government's commitment to increase the number of self-build and custom0build homes in Scotland, and to provide more opportunities for people to build their own homes. It also outlined a number of initiatives and funding programs that the government planned to implement to help support this goal.
The statement was a recognition that self-build and custom build can play a vital role in increasing the choice and diversity of housing available to meet the needs of the Scottish people, and that by providing more support for self-build and custom0build, the Scottish Government can help to deliver more affordable and sustainable homes that meet the needs of local communities.
It's worth noting that since then, the Scottish Government has continued to work on this policy statement, and has implemented a number of initiatives to support self-build and custom-build, such as the Right to Build Register, which allows individuals and groups to register their interest in building their own home, and the Self-build and Custom Housebuilding Fund which provides funding to support the development of custom and self-build projects.
Where can i find more information about the Right to Build Register in Scotland?
The Right to Build Register in Scotland is a register of individuals and groups who are interested in building their own home. The register is maintained by local authorities and is used to help identify demand for serviced plots for self-build and custom-build projects in their area.
To find more information about the Right to Build Register in Scotland, follow the highlighted link, where you can find a guide on how to register and further information on the right to build scheme.
You can also contact your local authority, as they are responsible for maintaining the register in their area and can provide you with more detailed information on how to register and any requirements or regulations that may apply.
Additionally, you can check with the National Custom and Self Build Association (NaCSBA), which is a UK-wide representative body for the custom and self-build sector, and provides guidance and support for those interested in building their own home. They have a specific section about Scotland too.
It's worth noting that the right to build register is not a guarantee that you will be provided with a plot, but it's an important step to identify the demand and help authorities to plan accordingly and make more land available.
What is the Scottish Government’s attitude to self and custom build?
The Scottish Government set out the following notes on their website relating to their views of, and support for self build.
‘Self-build provides opportunities for buyers to choose the type of home they want and make sure it meets their needs.
As set out in Housing to 2040, Scotland’s first long-term national housing strategy, we want self-provided housing to become a mainstream housing option.
We have developed a guide to self-building a home to help people who are new to self-build understand what's involved and where to find out more.
Is there Government supported funding for self-build?
Yes, there is some restricted funding offered. The Scottish Government offer a £6 million Self-Build Loan Fund that can provide loans up to £175,000 to eligible applicants unable to access standard bank lending. The loan is to help with construction costs for self-build projects. Find out more about the fund and apply online.
What are the barriers to custom build in Scotland?
There are several barriers to custom build in Scotland, including:
Lack of serviced plots: One of the main barriers to custom build in Scotland is the lack of serviced plots available for individuals and groups to build on.
Access to finance: Self-builders may find it difficult to access the finance needed to fund their project, and this can be a significant barrier to custom build. Self build finance tends to be more expensive than mainstream mortgages since the lenders perceive greater risk involved.
Knowledge and skills: Some individuals and groups may lack the knowledge and skills necessary to design and construct their own home, which can make it difficult to undertake a custom build project.
Perceptions and attitudes: There might be a perception that custom build is only for the wealthy, and a lack of awareness about the benefits and opportunities that custom build can offer to a wider range of people.
Lack of data and market intelligence: Limited data and market intelligence can make it difficult for local authorities to audit reliably demand for custom build and plan accordingly.
Limited availability of land: The scarcity of land, particularly in urban areas, can be an obstacle for custom build projects.
Are the major corporate house-builders land-banks barriers to custom build in Scotland?
Corporate house-builders' land-banks can be seen as a barrier to custom-build in Scotland, as they may limit the availability of serviced plots for self-build and custom-build projects. Corporate house-builders tend to purchase land in bulk, and hold onto it for future development. This can limit the availability of land for other types of housing, such as custom-build and self-build projects.
Some argue that corporate house-builders tend to focus on larger-scale developments, and may not be as interested in smaller-scale, custom-build projects. However this can lead to a lack of serviced plots available for custom-build projects, as well as a lack of support and guidance from large house-builders for individuals and groups interested in custom-build.
Additionally, corporate house-builders may also hold land that is suitable for custom-build but don't develop it, due to the fact that it's not profitable or not in line with their business model.
What are the perceived benefits of adopting a self-build approach?
Self-build can offer a number of benefits, including:
Personalisation: With self-build, you have the freedom to design and construct a home that meets your specific needs and preferences, rather than being limited to stock plans and designs offered by conventional volume house builders, the housing market or what any particular developer may be selling at that time.
Cost savings: By taking on some or all of the work yourself, you may be able to save money on labour costs. Additionally, self-build allows you to choose materials and finishes that fit within your preferences.
Quality: By being actively involved in the construction process, you can ensure that the work is done to your standards and that any issues are addressed in a timely manner.
Sense of accomplishment: Building your own home can be a rewarding experience, and the sense of accomplishment that comes with it can be quite fulfilling.
Sustainability: Building a home to your own standards and using sustainable materials and methods can lead to a more energy-efficient and eco-friendly home.
Flexibility: Self-build allows you to make changes to your design as the project progresses, which can be beneficial if you discover unexpected opportunities or constraints.
Choice of location: Self-build can also offer the opportunity to build on land that you already own, or that you have found and purchased, which can be difficult to find when buying a pre-existing property.
What are the risks of self build without a main contractor?
Self-building a home without a main contractor can present a number of risks, including:
Lack of experience: If you have limited construction experience, you may not have the skills and knowledge necessary to effectively manage the project and ensure that work is completed to the required standards.
Time management: Self-building a home can be a time-consuming process, and without a main contractor to manage the schedule and coordinate the work of different trades and contractors, it can be difficult to ensure that the project is completed on time.
Cost overruns: Without a main contractor it will be harder to ensure that costs are kept under control, there is increased risk of cost over-runs and uncertainty.
Final cost: It is likely with a ‘true’ self build approach that you will not know how much your project has cost until the day the final coat of paint has dried. Do not underestimate this consideration. You can find yourself in tricky situations bearing the effect of market forces if things do not go to plan
Quality Management: Without a main contractor to oversee the work and ensure that it meets the required standards, there is a risk of substandard work being carried out. In turn without a main contractor there is no single point of responsibility for remediation of defective work and you may find yourself having to fix any defective work yourself or employing someone else to do so.
CDM2015: Without the expertise of a main contractor to ensure that the construction site is safe and that all health and safety regulations are being followed, there is a risk of accidents and injuries. If you act as the Principal Contractor, you will assume those liabilities in relation to CDM2015. Read more about CDM 2015 Health and Safety in Domestic Construction.
Building Regulation Compliance: Building regulation compliance is a must, and if you are not familiar with the regulations in your area, you may not be aware of what is required to satisfy the requirements of Building Control during the construction process. A competent and experienced contractor will deal with building control regularly and will be able to ensure their requirements and inspections are conducted timeously and in accordance with the Construction Compliance Notification Plan. If you contract with your builder and employ an architect to administer the contract, payments can be controlled to ensure these inspections are carried out.
Insurances: Without a main contractor, you may be responsible for ensuring that all of the necessary insurance is in place, which can be difficult if you are not familiar with the requirements.
Responsibilities: Without a main contractor, there is no single point of responsibility for the work, which can make life difficult and costly for you should challenges arise.
Stress: Building a house is already a stressful experience, and without a main contractor to help you manage the process, it can be even more challenging.
The skills that a Main Contractor brings to the table should not be underestimated. Whilst many like the idea of physically building their own self build home, in our experience most will hire contractors to complete a significant proportion of the works.
Can I use a main contractor on a self build project?
Yes, it is possible to use a main contractor on a self-build project. In fact, in our experience, most self-builders choose to hire a Main Contractor to manage the building process and procure all trades.
A Main Contractor can handle the day-to-day management of the project, including coordinating the work of different trades and contractors, managing the programme, ensuring that work is completed to the required standards, and ensuring that all health and safety regulations are being followed.
By hiring a competent and skilled main contractor, self-builders can benefit from the contractor's experience, skills, and knowledge, which can help to ensure that the project is completed on time and within budget, and to a high standard. Additionally, the main contractor can help you to fulfil health and safety obligations, insure the works and be responsible for procuring all the materials.
What are the benefits of using a main contractor on a self build project?
There are several benefits of using a main contractor on a self-build project, including:
Experience and expertise: A main contractor will have the experience and expertise necessary to manage the project effectively, ensuring that work is completed to the required standards and that the project is completed on time and within budget.
Price: You will be able to obtain a price for the full project before commencing construction, allowing you to fully understand your liability prior to making the final commitment to build.
Contract: You will be able to enter contract with a single party who will have overall responsibility for delivery of the project.
Coordination: A main contractor will coordinate the work of different trades and contractors, ensuring that all aspects of the project are completed in a timely and efficient manner.
Quality control: A main contractor will oversee the work of all trades and contractors, ensuring that all work is done to the required standards and that any issues are addressed in a timely manner.
Site safety: A main contractor will be responsible for ensuring that all health and safety regulations are being followed on the construction site, which can minimise the risk of accidents and injuries.
Building Regulations: A main contractor will be familiar with the building regulation requirements and liaise with Building Control throughout the project to ensure the required inspections are carried out at the correct time.
All Risks Insurance: A reputable main contractor will ensure that they have insurance is in place. As a minimum they should provide an ‘all risks’ insurance policy which covers the works being undertaken alongside Public and Employers Liability insurance. You may also wish to take out joint names insurance policies depending on the scope and nature of the work involves. Appropriate insurances provide added protection for you and your home during the building process.
Stress reduction: A main contractor can help to manage the stress of building a home by taking care of many of the day-to-day details, so you can focus on the design and planning aspects of the project.
How do I get a construction cost for a self-build project if I don’t use a main contractor?
If you don't use a main contractor for your self-build project, you'll need to estimate the costs of the project yourself. Here are a few steps you can take to get a realistic estimate of the construction cost for your self-build project:
Develop a detailed design, set of drawings and specifications: This should include a floor plan, elevations, technical details and detailed specifications for materials and finishes.
Quantity Surveyor: Employ a Quantity Surveyor to provide you with a detailed budget estimating the cost of each package of works. You can then use this to measure each package of work as you obtain quotations and this will allow you to understand the overall effect on the project cost as you receive prices from the market for each package.
Research materials and labour costs: Get quotes from suppliers and contractors for the materials and labor required for your project. Make sure to include the cost of permits and other necessary fees.
Create a detailed budget: Use the information from your project plan and cost estimates to create a detailed budget for the project.
Get multiple quotes: It's always a good idea to get additional cost estimates from different suppliers and contractors to ensure that you have a clear understanding of the costs associated with the project.
Add contingency: It's important to add a contingency of 10-20% of the total budget to account for any unexpected costs that may arise during the project.
Review and adjust: Keep in mind that the construction cost can change as the project progresses, so it's important to recognise that a budget is an active document that needs managed and maintained throughout the lifecycle of the project.
How do I get a construction cost for a self-build project if I use a main contractor?
If you choose to use a main contractor for your self-build project, they will provide you with a detailed construction cost estimate at tender stage. Here are the steps that usually a main contractor takes to provide a construction cost estimate:
Tender: If the approach is to use a main contractor, your architect will work with you to develop a set of tender information. This will then be issued to the marketplace to allow a pre-agreed list of contractors to price the project in a competitive environment to establish the market price for the work.
Obtain a detailed breakdown: The cost estimate should provide a detailed breakdown of the costs, including labor and materials, so that you can see where the money is being spent. Your architect will be able to help you prepare a works schedule for issue to the marketplace and ask the contractors to price the schedule, this will allow you to see how one contractors price compares to another which can provide helpful insight.
Enter into contract: When the price is agreed with the successful tenderer, let the contract using an industry recognised standard form of Building Contract published by the Scottish Building Contract Committee / Joint Contracts Tribunal. This will keep you safe, set out recognised payment terms and ensure you remain in control of variations to the works during your build.
