Buildstore calls for lenders to allocate £1 billion for self-build projects

Published by Max Salsbury for 24dash.com in Housing and also in Development

Renovation specialist Buildstore has called on lenders to allocate £1 billion for self-build projects following the announcement of the Bank of England's Funding for Lending Scheme (FLS).

Under the FLS, the Bank of England will lend money to financial institutions at below-market rates to stimulate lending to homeowners and businesses.

Buildstore claims that lending to self-builders - the fastest growing sector in UK housing - fits the bill, creating a positive ripple effect through the home economy, helping not only homeowners but employment at a local level as construction workers would be called upon to meet the demand for bespoke homes.

Buildstore claims that for every £1 million lent, six new homes could be built, and, with the average self-build project taking a team of five construction workers a year to complete, the number of jobs created could stack up to 6,000 for each £ billion lent.

BuildStore is urging Housing minister Grant Shapps, who has tirelessly campaigned for community building, to get behind the scheme.  

Raymond Connor, chief executive of BuildStore Financial Services says: “The benefits of allocating £1 billion to the self build sector would be money wisely spent; there is no down-side.

"I am directly appealing to Mr Shapps to join forces with self build groups while he has the government’s attention on this issue, and to encourage lending institutions to allocate funds in this way.  The demand is clearly there for self build so let’s get the money aimed where it can do most good.”