It’s clear we need to look at alternative options.

While developers grapple with planning delays, high costs and limited access to viable land, new routes to homeownership are urgently needed.

Self and custom builds remain a hugely underused part of the market, with real potential to boost supply, back SME builders, and create homes that better reflect buyers' needs.

So what’s holding them back, and how do we unlock that potential?

Unlocking new routes to homeownership

The UK has one of the lowest rates of self-commissioned homes in the developed world, despite having some of the oldest housing stock. At the same time, traditional housebuilders haven’t been able to keep up with demand, particularly from first-time buyers. That’s left a clear gap between what the market offers and what buyers actually want.

Self and custom builds offer a practical way to help close that gap. They give people the chance to create homes that reflect their needs, from layout and style to location and even being more energy efficient.

This flexibility helps bring more variety to the market, supports better-quality homes, and opens up opportunities for smaller developers to get involved. For SME builders in particular, custom builds can support cash flow, reduce unsold stock, and make better use of land that might otherwise sit idle.

We’ve seen that it can be done. Local authorities have shown this by simplifying planning processes and supporting self-build initiatives. Their approach empowers communities to take control of local development and should be seen as a model for other councils to follow.

Looking beyond the numbers

Self and custom builds aren’t just good for homeowners, they’re good for the wider housing sector too. They give smaller builders more of a foothold in the market, helping them compete in a space that’s often dominated by the larger developers.

With more flexibility in design and delivery, these projects give SMEs room to innovate and respond to what local buyers actually want.

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Sustainability is another plus point. Because buyers are involved from the start, it’s easier to build in energy-efficient features and low-carbon tech from the outset. The result is often higher-quality homes that last longer, cost less to run, and better reflect the homeowners' style and preferences.

There’s also a real opportunity to improve affordability. Many buyers assume custom builds are more expensive, but depending on the plot, design, and materials, they can sometimes work out cheaper than buying a standard new build, particularly when purchasing a serviced plot.

As more people look for homes that reflect their values, especially around sustainability and quality, custom and self builds offer a more responsive, buyer-led route onto the housing ladder.

The current barriers in place

Despite this promise, self and custom builds remain a smaller part of the housing market, with only around 14,000 homes completed annually, far below the 375,000 per year needed to meet the government's target. A key reason for this shortfall isn’t demand, but awareness.

Many buyers, especially younger people, simply don’t realise that self-build is an option onto the housing ladder, or assume it’s too expensive or complex to consider.

In reality, there’s a clear appetite from the younger generation. Research from Saffron for Intermediaries found that 64% of 18–24-year-olds would consider a custom build, showing clear demand from a generation often priced out of traditional routes to homeownership.

But unless buyers know what support exists and how to get started, that interest risks going to waste.

Scaling things up will take a joined-up effort.

We need to see policy changes that make the planning process simpler and reduce the red tape that often slows projects down. At the same time, raising public awareness is critical. More people need to know that custom and self-build is an option, and understand how to get started.

It’s important to show that it’s not just a route for high-net-worth individuals or Grand Designs style builds, but a realistic and more affordable option for a wide range of buyers.

And just as importantly, we need stronger industry backing to bring the right voices together, share what’s working, and make sure self and custom build gets the support it deserves.