Dedicated land and £30 million fund will offer tailor-made support for self build groups

Plans for the nation's first ever dedicated large-scale self building community were given the green light today by Housing Minister Grant Shapps.

Mr Shapps announced a wide package for aspiring self builders, offering exclusive access to £30 million funding and Government-owned land to help them turn their housebuilding dreams into a reality.

The move is part of wider efforts to help double the size of the self-build sector - with backing from experts including Grand Designs presenter Kevin McCloud, who has agreed to be the industry's champion.

The Minister named seven sites across the country being set aside specifically for groups of people looking to work together to build their own homes. These sites, together with many more opportunities being identified by local authorities, will create hundreds of new self build opportunities across the country.

He also praised the work of councils including Cherwell District Council, who are looking to give as many local people as possible the opportunity to build their own homes - including on dedicated sites.

And with Datamonitor predicting that the numbers of mortgages available to self-builders will increase by 141 per cent over coming years, Mr Shapps today wrote to major lenders urging them to consider how they can make the most of the business opportunity that a growing self-build sector can offer.

Mr Shapps has also asked the Homes and Communities Agency to continue identifying sites to be dedicated to group self build projects.

The move follows the Minister's recent mission to Almere in the Netherlands - Europe's largest low-cost self-build project. There, he was able to see the difference that can be made when a council gives help to local aspiring self-builders.

He praised the work of Cherwell District Council in Oxfordshire, who are following Almere's lead by offering specific sites to local people looking to build their own home.

As councils across the country draw up their local plans for development, Mr Shapps urged them to follow Cherwell's example and consider the needs of self-builders in their area.

In addition to offering land, Grant Shapps also published details of a new £30 million investment fund to offer people the money they need to lay the foundations for their self-build projects - the first time this has been done in the UK.

This new fund will offer short term loans to community groups, builders and other small organisations looking to start self-build projects.

The money could be used to pay up to 75 per cent of a project's land and early construction costs, and will be available to organisations planning to build five or more homes at a total cost of up to £3 million.