Wednesday, October 20, 2021
UK

Self-build projects seeing growth in short-term holiday lets

Self-building schemes

They are supported by the SBLF, which has run from September 2018

Self-build projects are nearing completion in a number of locations as a way of retaining local populations seeing a growth in second homes and short-term holiday lets.

Self-building schemes are recovering after a slump due to the financial crisis more than 10 years ago.  Discounts applied by landowners, usually community owners, can be around 25%, or higher in some cases, which can reduce the cost of a £225,000 house and plot by more than £56,000.

The developments are seen as vital to sustaining populations in remote and rural areas, as well as local construction jobs.

They are supported by the Scottish Government’s Self-Build Loan Fund (SBLF), which has run from September 2018, but is due to end in August.

It is thought hundreds of millions of pounds has been lost in reduced economic activity, and thousands of job opportunities lost, due to a significant drop in self-build projects in recent years.

But Ronnie MacRae, CEO of the Communities Housing Trust, which administers SBLF, said the list of communities now working towards providing plots is growing all the time.

Currently, self-built schemes are underway in a number of areas, including Colonsay, Raasay, Skye, Dornoch, Ardnamurchan, Rothiemurchas and Knoydart.

Mr MacRae said: There was a clear gap during the worst years of the financial crash and only now are we starting to see real recovery and confidence starting to come back.

He said, we have about 30 affordable plots about to become available and many more communities are now putting this option back in their business plans which assist them greatly. It will be really exciting for the self-build sector if this progress can continue.

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