With mortgage products evolving and demand for better-performing homes continuing to grow, the outlook for self-build and renovation in 2026 is more robust than many might expect.
From specialist finance options to tax incentives designed to support custom and energy-efficient homes, the sector is quietly becoming more accessible, even in a cautious market.
From a finance perspective, the market is in a stronger position than many homeowners realise.
It has never been easier to access finance for building, renovating or extending a home, largely due to the growth in specialist products tailored specifically to these projects.
There is an expanding range of mortgages offered by building societies and specialist lenders, many of which are based on the end value of the completed home rather than its current value.
This approach unlocks greater ambition, particularly for extensions, retrofits and energy-efficient upgrades. Low-deposit products are also increasingly common, with some requiring as little as a 5% deposit.
If you can demonstrate realistic, well-planned build costs, then securing the right mortgage is very achievable.
I expect demand in 2026 to reflect the strong interest seen throughout 2025, driven by homeowners seeking greater control over design, layout and performance.
While volume housebuilders continue to play a vital role in delivering housing supply, he believes self and custom build meet a different need – offering flexibility, individuality and significantly better thermal performance.
Tax incentives further strengthen the case. Stamp duty applies only to the land purchase, not the completed value of the home.
New self-build homes are exempt from VAT, and homeowners can reclaim VAT on eligible materials. For developers bringing forward custom build sites, there may also be exemptions from the Community Infrastructure Levy.
With cross-party support for self and custom build, I am hopeful these incentives will remain in place.
Taken together, these factors suggest that the appeal of self and custom build is not simply holding steady but strengthening.
As finance becomes more flexible and fiscal incentives remain in place, homeowners are increasingly able to invest in homes that offer better performance, lower running costs and a closer fit to how they want to live.
For many, the combination of financial viability and long-term value is what continues to set self-build apart from the mainstream market.
Mark Stevenson is director of elsworthprojects.co.uk and guest speaker at the Homebuilding & Renovating Show
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