Confidence remains a key factor for the self-build sector which can affect not only the value of projects but also the types of construction and finishing materials used, according to the latest report by AMA Research.
Whilst some potential selfbuilders may choose to defer projects until economic times are more certain, the self-funded selfbuilder is more than likely to continue with plans for their project regardless of the current economic uncertainty, AMA Research states.
The value of the self-build market is estimated to have fallen by 10 per cent in 2020 as a result of Covid-19, with an estimated 13,900 completions, totalling a market value of around £4.3bn.
AMA Research also reported a strong disconnect between where people want to self build and where there are plots. A relatively larger number of applications were made in the Home Counties and the South East compared to the numbers of available sites.
In contrast, the biggest number of sites for selfbuilders are in the Highlands and Grampians of Scotland and the South West but these areas attract a relatively smaller number of applications.
Residential land values vary considerably across the UK and have become increasingly polarised between the very high levels in the South East and the rest of the UK. For the most part, variation in land costs is related to the availability of self-build plots within key areas.
AMA Research predicted that the growth of the self-build market up till 2024 will be greatly affected by how long the Covid-19 pandemic lasts and how quickly the economy and the construction industry in particular recovers.
Although the government has recently announced additional support for self-build, the issue of appropriate and sufficient finance remains a key factor determining the future value of the market.