What rewards will Brexit bring selfbuilders? 

In all the fuss about Brexit the one thing that seems conspicuously absent from the debate is the post-Brexit home. As a new build it would, of course, have to be a self build since no sensible developer would risk investing in a property that had to appeal to customers of diametrically opposite tastes. It would, in essence, be a labour of love – or, rather, intense dislike.

There would need to be two facades, each ideally overlooking a view of England’s green and pleasant land, or possibly Wales (Scottish and Northern Irish landscapes would naturally be absent as their inhabitants voted otherwise).

What this landscape would actually consist of would be another matter for debate: perhaps wind-ruffled wheat fields on one side and a busy city street thronged with rapacious traders on the other – quite a challenge for the plot finder.

Inside, only two completely self-contained living units would ensure harmony, though there should be some suitably fortified common areas for major events such as weddings and funerals (which would usually end in fights) and the serving of divorce papers.

Okay, it’s probably not a winner. But Brexit in any form – as well as the ongoing uncertainty it creates – is likely to have profound effects on housebuilding in the UK. So what are those effects likely to be, particularly on the selfbuilder?

We’ve already experienced a major one when the pound lost around 10 per cent of its value after the 2016 referendum. Since then it’s yo-yoed, coming within 10 per cent of parity with both the euro and the dollar at the time of writing (just before New Year). This has inevitably increased the cost of imported building materials.

According to the Federation of Master Builders, which represents the small- and medium-sized contractors typically used by selfbuilders, the price of imported timber has risen by 20 per cent, while that of Spanish slate has jumped 22 per cent.

How significant is this? Well, Spanish slate is a popular substitute for much more expensive Welsh slate. And while we produce plenty of local timber, little is the kind of slow-grown, high-strength timber needed for construction. Currently Europe – mainly Scandinavia – provides 87 per cent of all the wood and wood products imported into the UK, and 61 per cent of that is used in building. Plywood, for example, isn’t produced here at all.

Bricks and aluminium doors and windows also form a large part of the £10bn worth of building materials imported from Europe every year.

All these will also be subject to post-Brexit tariffs, though the general view seems to be that they will only add a further 10 per cent.

One way to mitigate higher costs – and supply delays – may be to build with more local materials, brick and stone, of course, but also traditional cob and thatch or, for the more adventurous, straw bales or rammed earth.

Hopefully, however, adjusting to the new costs and bureaucracy of even the hardest Brexit will be temporary. Harder to handle is an issue that has been developing for several years, and that is the shortage of construction workers.

Rather than investing in local apprenticeships, the construction industry has relied on skilled workers from the EU. In London and the south-east they now approach a third of the total workforce.

But the falling pound, the end of free movement after 2021 and complex new migration rules are destined to thin those numbers dramatically. According to a recent report, around two-thirds of small builders are already struggling to hire bricklayers, carpenters and joiners. Again, higher costs are likely to result.

This makes it even more important to identify – and secure the services of – a reliable contractor, and subcontractors, as soon as possible in your project. But it may also be worthwhile reconsidering how you build your new home.

Selfbuilders have always been able to save costs by acting as their own project managers, sourcing materials and acting as labourers, but there are also well-established building methods that are virtually DIY. They include insulated concrete formworks (ICF), Durosil blockwork and honeycomb clay blockwork.

Another method of overcoming labour shortages is to opt for a modular design. Almost entirely prefabricated, which greatly improves accuracy and build times, modular homes can be assembled on site in as little as 36 hours. Modular only accounted for around seven per cent of UK homes in the last financial year, but numbers are growing.

But perhaps the biggest opportunity presented by Brexit lies not in the construction of homes at all. Bank of England Governor Mark Carney famously warned that a hard Brexit could mean a 30 per cent drop in house prices. But it isn’t the value of houses themselves that would fall. It’s the value of the land they stand on.

For selfbuilders who need to sell existing homes to finance their projects that, of course, is a double-edged sword. But markets rarely work uniformly. Falling plot prices in your chosen location could present you with a unique opportunity.

Be vigilant, then, and be quick. Even arch Brexiteers concede that Brexit will be a shock to the economy and foreign investors will be tempted to snap up bargains.

So is this a good time to self build, then, or not? With so personal a project, only you can answer that question. Everyone’s resources and needs are different and even the best-planned self build is a challenge.

But for those willing to take it up, whatever the circumstances, the rewards are extraordinary.

February 2019