Self build market has 'solid foundations for growth'

Despite the pessimism in the housebuilding sector the number of self build projects has remained steady, according to an industry expert.

The Scotsman has reported that interest in new build homes has maintained because they are more energy efficient with fewer running costs, making them more attractive to financially prudent builders.

John MacDonald of Skye Homes told the newspaper his business, which offers self build kit houses to traditional Highland designs, has grown by about 35 per cent compared to last year.

Mr MacDonald said that despite the credit crunch the self build market is "remaining steady".

He stated that timber frames are starting to replace traditional block-building, which has led to "cautious optimism about growth".

"A lot of people building their own houses are selling their homes in cities to build in the countryside, releasing equity and making them less reliant on high-percentage borrowing," he added.

According to AMA Research's Self build housing report 2007, there is significant room for growth in the sector.

Self build can represent up to 60 per cent of all new houses built in mainland European nations, compared to between seven and eight per cent in the UK.