Heather Campbell
A list of grants, financial supports and initiatives available to help with your self-build or home improvement project in Wales.
In this article we cover:
- List with links of what grants / financial supports are available in Wales today
- Energy upgrade grants
- What fiscal incentives exist
- What utilities have to offer
- Low income schemes
While there aren’t many direct “grants” specifically for self-builders, there are various schemes and funding opportunities that can help reduce costs. Below is a list of potential funding sources for those building their own homes in Wales.
1. Self Build Wales
The Self Build Wales scheme, run by the Welsh Government and the Development Bank of Wales, aims to help make self-building easier by providing a package of financial support, access to land and planning permission.
The scheme is built around a “plot shop,” where local councils identify and sell plots that come with planning permission and site requirements already sorted.
[adrotate banner="58"]What does it cover?
You only need to pay 25% of the plot’s cost upfront. The rest, along with the full build cost, is covered by a self-build loan from the Development Bank of Wales. You don’t start repayments until your home is finished and mortgaged, making it easier to manage if you’re paying for other accommodation during the build.
Once the house is complete, you can repay the loan by selling or mortgaging the property, with up to two years to arrange this if needed.
When applying, you’ll pick your design from a book of approved home plans provided at the time of purchase. If there’s competition for a plot, the local council decides based on their priorities for the area.
Who can apply?
The scheme is designed to suit as many needs as possible and is open to everyone in Wales, including but not limited to:
- First-time buyers.
- Existing homeowners looking to upsize or downsize.
- Older or disabled individuals looking to build custom adaptive housing.
- Homeowners who want to stay in their local areas but couldn’t afford it previously.
For more information and how to apply visit here.
2 . Help to Build
The government backed Help to Build scheme supports self-builders by providing equity loans to make constructing a home more affordable in Wales, England and Scotland. It’s designed to help with upfront costs and make self-building more accessible to a wider range of people.
Who can apply?
To qualify, you must:
- Be 18 or older.
- Be a British citizen or have indefinite leave to remain in the UK.
- Secure a self-build mortgage from a lender registered with the scheme.
What does it cover?
The loan can be used to build a new home or customise an existing shell home. It covers up to 20 per cent of the land and build costs. The maximum project value is £600,000, including up to £400,000 for construction.
How much can you get?
You’ll need a 5 per cent deposit and a self-build mortgage. The government loan bridges the gap, covering up to 20 per cent of your costs. The loan is interest-free for the first five years.
Interest
In year six, you’ll pay a total of 1.75 per cent interest on the equity loan amount you borrowed, divided into 12 monthly instalments.
For example, if you got an equity loan of £80,000, 1.75 per cent would be £1,400. You’d pay 12 monthly instalments of £116.67, adding up to £1,400.
From year seven onwards, the amount of interest you pay will go up in line with the consumer price index, plus per cent.
3. Smart Export Guarantee
If you generate renewable electricity and live in Wales, England or Scotland, you could benefit from a Smart Export Guarantee (SEG) tariff.
The SEG is a support scheme that makes sure that people who generate their own electricity, such as through solar panels, are paid for the surplus electricity they export to the grid.
This doesn’t happen automatically, so you need to sign up to get the SEG tariff.
Under the scheme, all licenced energy companies with 150,000 or more customers must provide at least one SEG tariff. Smaller suppliers can offer an export tariff if they want to.
All suppliers can also choose to offer other means of making payments for exported electricity, separate to the SEG arrangements.
You need to apply directly to a SEG tariff supplier to start getting payments. Ofgem publishes a list of SEG licensees every year. The SEG supplier you choose doesn’t have to be the same one that provides your energy.
5. Great British Insulation Scheme (GBIS)
You can get fully funded or part-funded home insulation to reduce heat loss and keep your home warm for longer. This was formerly known as the ECO+ scheme.
To qualify, your home must:
- Have an EPC rating of D to G.
- Be in council tax bands A to E.
6. VAT reduction for new builds and conversions
In Wales (as in England, Scotland and Northern Ireland), new builds are exempt from VAT, but you’ll need to keep all your receipts and apply for a refund at the end of the project. This zero VAT rate is available to self-builders (new builds).
There’s also a zero VAT rate for work carried out for people with a disability or terminal illness. For those over 60, the reduced 5 per cent VAT rate applies to mobility aids, heating upgrades and security improvements.
7. Grants for energy-efficient home improvements
There are various grants available to help cover the cost of upgrades like insulation, boiler replacements or low-carbon heating systems.
Below, we’ve outlined key funding schemes, their eligibility criteria and how to apply.
a) Boiler Upgrade Scheme (BUS)
What it covers:
- £7,500 for air source heat pumps
- £7,500 for ground or water source heat pumps
- £5,000 for biomass boilers
Who is eligible:
- Open to homeowners in Wales and England.
- No income criteria.
- The property must currently use oil, gas or electricity for heating.
Find out more and apply here.
b) Connected for Warmth
What it covers:
- Air source heat pumps
- Insulation
Who is eligible?
- If your home has an EPC rating of E, F or G.
- Your home must be heated by electricity, solid fuels, oil or LPG.
You must either:
- Be receiving means-tested benefits,
- Be on a low income and facing high energy costs, or
- Be vulnerable to the cold due to age, illness or disability.
Find out more and apply here.
8. Nest Wales
Nest is a scheme created by the Welsh government aimed to improve the energy efficiency of homes by offering free home energy upgrades. It’s aimed at those on a low income or struggling with high energy costs.
What it covers:
Free upgrades such as a new boiler, insulation or solar panels.
Who is eligible:
You could be eligible for free energy efficiency improvements if:
- You own your home or rent in Wales from a private landlord (not Local Authority or Housing Association).
- Your home is energy inefficient and expensive to heat. Specifically it has an EPC rating of 54 (E) or less; or an EPC rating of 68 (D) or less where you or a household member have an eligible health condition.
- You or someone you live with receives a means tested benefit or you live in a low-income household.
For full eligibility criteria and how to apply visit here.
If you are eligible, Nest Wales will arrange for an assessor to visit you and gather more information about your home. This will be used to develop a tailored package of support specific to you and your home aimed at making your home warmer and cheaper to heat.
9. Energy Company Obligation
The Energy Company Obligation (ECO) is a government energy efficiency scheme in Great Britain designed to tackle fuel poverty and help reduce carbon emissions.
What it covers:
Insulation, boiler upgrades, solar panels and air source heat pumps.
You could be eligible for ECO if:
- You receive means-tested benefits or child benefit with a low income.
- Your household income is below £31,000 (EPC rating E, F, or G or D if you own the home).
- You have a long-term health condition and an EPC rating of E, F or G.
- If you don’t meet the exact criteria but live in a cold home with a low income, you may still qualify through the ECO4 Flexibility program, which allows local councils to broaden eligibility for those in fuel poverty.
Visit your local council’s website or Ofgem to learn more.
10. Disabled Facilities Grant
The Disabled Facilities Grant (DFG) helps homeowners in England and Wales make essential home adaptations to create safer and more accessible living spaces for people with disabilities.
You may be eligible if you:
- Have a disability or live with someone who does.
- Are a homeowner, private tenant, or housing association tenant.
- Need adaptations recommended by an occupational therapist, such as ramps, stairlifts, or accessible bathrooms.
- Eligibility is means-tested, except for children under 18.
Grants are available up to £30,000 in England. The exact amount depends on the cost of the work and your financial circumstances.
To apply, contact your local council, who will arrange an assessment and guide you through the process.
11. Community Land Trusts
If you’re finding it difficult to secure a building site and you’re happy to be part of a community-driven project, a Community Land Trust (CLT) might be the solution.
CLTs are non-profit groups that buy and manage land to benefit local communities, focusing on building affordable homes and providing shared resources.
CLTs give self-builders access to land at prices based on local incomes, not market rates. This helps make land more affordable in areas where rising costs can make self-building out of reach.
Being part of a CLT project means teaming up with others in your community to shape the development together. It’s a chance to work collaboratively, making the whole process smoother and ensuring the project reflects everyone’s shared vision.
While the CLT handles the overall land development, self-builders usually have the freedom to design and build homes that suit their needs, as long as they follow the agreed guidelines.
Many CLTs focus on eco-friendly building methods, making them a great option for self-builders looking to create sustainable homes. Plus, CLTs keep ownership of the land to help keep homes affordable for future generations.
Local councils and housing associations often partner with CLTs and can provide information about available plots or guidance on starting a new CLT in your area. Or visit the Community Land Trust Network for further information, and a map of current CLT locations.
Disclaimer: This list is not exhaustive, always consult with a qualified building professional. Schemes are subject to change.
Last update: December 2024
English