A greater proportion of young people would consider or have considered a custom-build home than older people, a study from a mutual found.
A survey of 2,000 consumers conducted by Saffron for Intermediaries, the intermediary arm of Saffron Building Society, found 64% of 18-24-year-olds would think or already had thought about a custom-build home.
This was compared to just 21% of those over 55 who said the same.
Younger people also had more awareness of how to begin the self-build process, with 35% of respondents aged between 18-24 having knowledge of the Right to Build register, compared to 17% of over-55s.
The study also found that 42% of respondents aged between 18 and 24 were able to pick out the right definition for custom build, compared to 34% of those aged over 55.
Saffron for Intermediaries said this interest and knowledge suggested there may be an untapped market for custom-build homes among the younger generation.
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More awareness needed to boost custom-build demand
While the younger respondents seemed to be more informed about custom build, Saffron for Intermediaries’ research indicated there was still a general need for more consumer awareness.
Across all respondents, just 39% correctly picked out the description of a custom build.
Of those who were considering or had considered custom building their own home, 34% did not know what the Right to Build register was and just 28% had signed up to it.
The mutual said this did not just highlight an issue around awareness, but also the barriers faced by people wanting to join the register but coming across restrictions by local authorities.
It said the registers did not accurately reflect demand, meaning the government and industry were unable to respond appropriately.
Saffron for Intermediaries also found that people had misconceptions about custom build, such as believing it was more expensive.
Respondents estimated that the average two-bedroom custom-build house would cost £248,000, but data from Checkatrade suggests it costs around £190,000 depending on the design and quality of materials used.
Further, 24% of people thought custom building their own home would be too much hassle, but Saffron for Intermediaries highlighted that buyers did not need to manage the project and could choose their level of involvement.
Some 28% said they would be more attracted to custom build if they had more information about how it worked.
Tony Hall (pictured), head of business development at Saffron for Intermediaries and member of the board of the National Custom & Self Build Association (NaCSBA), said: “Custom-build housing offers a significant opportunity to help meet the government’s housebuilding objectives and provide prospective homeowners with tailored, affordable options. However, our study shows that awareness and understanding of custom build remains low, with many consumers unsure about the process and benefits.
“That being said, it is really encouraging to see growing interest from younger generations, who are exploring alternative routes to homeownership in today’s challenging market. For lenders and brokers to harness this potential demand, raising awareness is key. We must bridge the knowledge gap through targeted information and guidance, helping consumers understand how custom build can meet their needs and fit their lifestyle.”
Hall added: “For brokers and lenders, this presents a valuable opportunity to expand their business by supporting customers in achieving their homeowning dreams through custom-build projects.”
Peter Johns, chief executive at NaCSBA, said: “NaCSBA has campaigned tirelessly for the custom-build sector, which offers consumers complete control over the design of the home they choose to buy, while supporting the UK’s housebuilding agenda. Saffron’s survey has shown that appetite for custom build is certainly there and it is particularly encouraging to see that it appeals to a younger demographic.
“We are delighted to have Saffron as a Gold Partner member of NaCSBA and look forward to continuing to work with them and the rest of our members to help make custom and self-build a mainstream choice in the UK housing market.”
