Smaller builders could benefit from a £150m Help to Build fund to make it easier for people to commission a bespoke home. The government initiative is aimed at creating a level playing field between first-time buyers of newly built homes, who benefit from Help to Buy, and those who want to build their own home.

Housing secretary Robert Jenrick said: “Building your own home shouldn’t be the preserve of a small number of people, but a mainstream, realistic and affordable option for people across the country. That’s why we are making it easier and more affordable - backed by over £150m new funding from the government.”

The scheme will provide an equity loan on the completed home, similar in principle to the help-to-buy initiative. The fund is part of an action plan to boost custom and self-built homes including revisiting the right to build legislation and allocating more funding for the right to build task force. Prime minister Boris Johnson has appointed Conservative MP Richard Bacon to lead a review for scaling up the sector.

Johnson said: “Self-build and custom housebuilding can play a crucial role in increasing choice for consumers and ensuring people can live in the homes that they want, and that are designed to meet their needs. We know that self and custom builders deliver high quality, well-designed homes that are energy-efficient, accessible, affordable, and welcomed by their communities.”

Compared to other European countries such as Germany, the UK has a small self and custom build sector. The government hopes to increase the number of self and custom built homes to 30-40,000 a year. It sees the help-to-build fund as part of its wider ‘plan for jobs’ aimed at boosting SME builders who are estimated to account for one in ten new homes.