Lee Williams is sales manager at Saffron for Intermediaries
Most developers will tell you that planning permission is their biggest hurdle when it comes to new housing projects. And the stats support this – there’s been an 11% drop in planning approvals for the first quarter compared to last year in England.
Given the current landscape, custom built homes could help ease the pressures. With Rachel Reeves committing to building 1.5 million new homes, custom build could contribute to these targets, provided it receives the focus and support necessary to scale.
Unlocking potential with custom build
Labour could really benefit from embracing custom build to reach these ambitious targets. Planning delays and tight regulations often slow things down, and custom build offers a practical way for developers to navigate these obstacles.
So, what exactly is a custom build?
Custom build homes are the middle ground between self-builds and traditional new builds. They’re self-built homes, but the process is made easier as most of the heavy-lifting is done by a professional developer. This means you can get a unique property that fits your lifestyle and preferences without the heavy involvement that typically comes with self-building from scratch.
A custom build can refer to a single, one-off home that an individual commissions and a developer builds. It can also be multiple properties where the developer handles the construction but allows future occupants to personalise the design to suit their needs. Custom build developers also offer a range of services depending on the customer’s needs. They can assist with contractor selection or manage the entire process. Options range from a watertight shell—where the structure is weatherproof but unfinished inside—to a full turnkey solution, ready to move into.
The appeal for developers
It’s all about flexibility. Custom builds allow developers to sell plots earlier in the building process, often even before the foundations are in place, allowing them start generating income sooner. Plus, they can still offer buyers support with the rest of the build, working alongside local trades while staying in charge of the overall project.
This early-stage selling improves cash flow and eases some of the headaches associated with planning permission. Custom builds often include detailed pre-application consultations with planning authorities, which can be helpful in identifying potential issues early on. Local authorities typically favour designs that align with the local character, so custom builds are often better positioned to meet these requirements.
But the benefits of custom build go even further. This model also means that developers don’t have to stretch their own resources too thin. For those with a limited number of trades, custom build projects can help free up and better allocate these resources. Developers can then partner with local trades for the building work while still overseeing the overall project, which also benefits the local economy.
Better homes, greener future
Custom build homes are also making a contribution to creating greener and higher-quality housing stock. Unlike mass produced new-build houses, which can sometimes be poor quality because they aren’t tailored to specific individuals, custom build homes allow future occupants to prioritise choices that benefit both the environment and their local communities.
The new government is clearly serious about energy efficiency, with a requirement for landlords to achieve an EPC rating of Band C by 2030. Custom builds could be a key part of this solution – research from the Right to Build taskforce shows that these homes can cut CO2 emissions by as much as 43%.
The level of personalisation in custom build means that every aspect of the home can be designed with sustainability and energy efficiency in mind. The result is homes that not only meet the specific needs of their owners but also contribute to a more sustainable future. With these advantages, custom build homes are increasingly appealing to consumers who value quality, efficiency, and the ability to craft a home that truly reflects their lifestyle and values. Custom build is already a major contributor to new homes in other developed countries, including in Germany, where self- and custom build make up 55% of new homes. It’s time for the UK to catch up.
Custom build is proving to be a smart way forward for both developers and communities. By partnering with local trades and streamlining the construction process, developers can maintain control over quality and timelines while fostering strong community relationships. This approach can help the government work towards its housing targets by addressing the growing demand for quality homes. While custom build may not be the whole answer, it offers a flexible solution that can speed up construction times and deliver homes that meet individual needs.
