People keen to build own homes can now apply for Government loans to help

Self-builders in Scotland who are unable to access standard bank lending can now apply for a loan of up to £175,000 to help with home development costs.

The Self-Build Loan Fund provides cash to help people develop good quality and energy efficient housing.

Following the success of a pilot scheme in the Highlands, the fund was launched nationally in 2018, with 41 loans worth a total of £6.2 million approved to date.

Applications for the loan will reopen from Monday.

Housing Secretary Shona Robison said anyone interested in the scheme should contact the Communities Housing Trust to find out more about the funding.

She said: “This fund aims to unlock the dream of building your own home, in many cases allowing people to stay in their local communities.

“We know it can be more difficult to access finance for self-build projects than for buying an existing property, and this fund is a crucial lifeline for those unable to access standard bank lending.

“When loans are repaid, the money can be re-used, during the life of the fund, supporting more self-builders and providing more homes for future generations.

“Self-provided housing can play an important role contributing to the long-term sustainability of our rural and island communities, and this £6 million Scottish Government fund will continue to help support this.

“It has had great success in the Highlands and Islands and has also provided dream homes for people living across the whole of Scotland.”

Kirsten, a school teacher from Shetland, spoke about how much she and her partner benefitted from receiving the loan.

The pair took ownership of a plot land with an old croft house more than 20 years ago which they initially planned to renovate.

But she said several things happened which hindered their plans, the most significant being her partner becoming long-term disabled after an accident.

“If the fund hadn’t been available we would have had to stop our build altogether and sell the plot of land,” she said.

“That would have meant it being harder for us to get onto the property ladder.

“It can be difficult or more costly to find a property that has larger living accommodation needed for wheelchair use. It may also have taken us away from our home area where family are nearby.

“I don’t know what we would have done without this fund.”

Ronnie MacRae, chief executive of the Communities Housing Trust, said: “In the years we’ve administered the fund, we’ve seen demand rise as conditions become even more challenging for people to build their own home.

“In many cases, families just need a bit of extra support and are fully able to build and then repay the loan.

“Self-build remains an important option for many, particularly in areas where no other options exist, so we are extremely grateful to the Scottish Government for continuing to provide the fund.”