Self-Build and Custom Housebuilding Registers in England: A Transaction-Cost and Effectiveness Analysis

The development of the self and custom housebuilding sector can work towards increasing the supply of housing and alleviate some of the strain on the housing market in England. Although it is not a solution for everyone, improving self and custom housebuilding can add diversity to the market, increase housing affordability, and produce sustainable homes. This has been recognised by the UK Government, which has introduced legislation which aims to assist self and custom builders on the journey to building their own home. The goals of the legislation are to ensure every local authority in England keeps a register of individuals who want to build their own home, to consider this register when carrying out other planning functions, and to grant sufficient planning permissions for those on the register. This paper evaluates the ‘self-build and custom housebuilding registers’ from the perspective of transaction costs and perceived effectiveness. This is achieved through semi-structured interviews with local authority planners, private-sector planners, property developers, and national bodies. The findings of this study identify that the primary transaction costs occur in the eligibility tests stage of the register application and relate to the uncertainty felt by applicants post application. The paper concludes that these could be rectified by implementing a more consistent and fair system. The perceived effectiveness of the register varies considerably. The paper determines that the policy requires significant change in order to meet the goals it set out to achieve, which includes model Supplementary Planning Guidance documents and a robust support system for applicants.