The Welsh Government is backing self-builders to the tune of £210 million.
Self-Build Wales will offer those who plan to build their own home loans on pre-agreed plots with the loans only due to be repaid once the new property has been mortgaged.
The deal would allow self-builders to build their new home and cover their living costs.
The finance will come from the Development Bank of Wales, which gets its funding from the Welsh Government.
Removing barriers to home ownership
Julie James, Housing and Local Government Minister, said: “We want to make self-build available to many more people in Wales, not just the most privileged households.
“Finding the land, navigating planning consents and being able to afford self-build while covering the cost of living can be real barriers.
“We have launched this scheme in partnership with local authorities to overcome all of these barriers.
“This offers a route into home ownership for people who want to stay in their local area but haven’t previously been able to afford to buy there.
“It also offers older and disabled people the opportunity to build custom-adaptive housing that meets their needs in the communities where they want to live.
“Figures suggest an average self-build house in the UK costs only 70-75 percent of its final value because no developer profits are involved. This puts that benefit into the pocket of the homeowner.”
Alleviate housing crisis
The self-build scheme has been welcomed by the Federation of Masters Builders (FMB) Cymru.
Ifan Glen, director of FMB Cymru, said: “Significant growth in the custom and self-build market could help alleviate the housing crisis and will expand opportunities for small building firms across Wales.
“Research has shown that over half of adults in the UK would one day like to build their own home. Across the EU, approximately one third of all homes are custom or self-build whereas in Wales, it’s just 5 per cent.
“People want to custom or self-build their home but the right conditions haven’t been in place to allow them to do so.”