How to Build an Eco-Home: Essential Tips & Common Mistakes to Avoid

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Introduction - How to Build an Eco-Home

Eco-architecture utilizes materials and construction techniques that minimize environmental impact, enhance a home's energy efficiency, and save the client money.

The use of sustainable materials is key to achieving this. Options such as locally sourced timber, recycled elements, and natural insulators like sheep's wool not only reduce the carbon footprint but also contribute to the home's overall sustainability. Due to their natural properties, these materials are environmentally friendly and promote healthier living environments. This article will cover How to go about Building and Eco-Home.

Should you undertake an Eco Home design project?

Renewable energy technologies, such as solar panels and heat pumps, are not just additional features in modern eco-homes but integral to design. These systems provide clean energy solutions that reduce reliance on fossil fuels and lower utility bills. Properly integrating these technologies during the design phase complements the architectural aesthetics while maximising their functional benefits.

How much will an Eco-home cost? 

To estimate the value of a plot of land, follow a method similar to how an estate agent would appraise a property, with an additional step: locate similar plots in the same area that already have properties on them. Engage with a local real estate agent to determine the market value of these properties. Typically, a plot without a property should be about 45% of the total value of the property and the land combined.

For instance, if a two-bedroom semi-detached home on a half-acre plot in your area is valued at £300,000, the land alone might approximately be worth £135,000 using the same 45% guideline. However, remember that this percentage could vary slightly based on the local market's desirability and geographical differences across the country. Still, this formula provides a general baseline for estimating land value.

How do you go about acquiring a plot of land for your eco-home? 

One piece of advice is to approach the Self-build and Custom Housebuilding Register with measured expectations. Established on April 1, 2016, this register requires local planning authorities to track individuals and groups seeking serviced plots for self-build or custom housebuilding projects.

While the register appears promising, my experience with the Birmingham Self-build and Custom Housebuilding Register over four years has been underwhelming. Despite Birmingham's status as the largest council in Europe with numerous potential plots, I have yet to receive any viable plot options from the council - not one. 

You could use several alternative methods, such as contacting local estate agents, seeing what is on the market, or getting to know the locals in a particular area. 

However, clients should consider more proactive methods of acquiring a site. This would involve searching on Google Maps aerial view for potential sites - perhaps you notice a house with an unusually large back garden that is not being used or a plot of land well connected to amenities and services such as electricity and water. After that, a quick search and purchase from the land registry will give you all you need to contact the landowner. At this point, you may approach the landowner and tell them you are interested in buying the plot of land from them. By buying outside the traditional estate agent route, you may even land a bargain as you are not competing with other potential buyers. 

The obvious downside to this approach is that it is by no means guaranteed to work the first time, if at all—you will most likely need to persist to make it work. 

Sometimes, finding the perfect plot involves boots on the ground

Always purchase Subject to Planning. 

If you've found the perfect plot of your dreams, you might be eager to purchase it and close the deal. However, ensuring you can build what you want on the land is crucial. The best way to do this is to purchase the land 'Subject to Planning.' Essentially, you only buy the land once you have secured planning permission. You agree with the landowner through a contract that the land is yours to purchase at an agreed price, contingent upon obtaining planning permission. This approach protects you from the risk of buying a plot of land and then being unable to secure planning permission.

It’s also important to secure full planning permission rather than, for example, a pre-application recommendation from a planning officer. A pre-application approval recommendation is welcome and a step in the right direction; nevertheless, from a planning perspective, it is fairly arbitrary and has no binding aspects. Therefore, obtaining full planning permission is critical to ensure your ability to proceed with your building plans.

Do you require an architect? 

Of course - you would expect me to say yes to this. Nevertheless - let me explain. Eco-homes are increasingly popular among self-builders, with approximately 13,000 individuals creating custom residences annually. Engaging an architect is essential to ensure your home aligns with your needs, lifestyle, and budget. An architect will help tailor your home’s design to meet your requirements, guiding the project from concept to completion.

Working with a good architect will help to streamline the entire process from conception to completion

Obtaining a self-build mortgage 

Most people will require a self-build mortgage to build their home. It’s important to distinguish a self-build mortgage from a regular one you may be more familiar with. A regular mortgage involves borrowing against an asset, i.e. the home, whilst a self-build mortgage is for something non-tangible. Some lenders work on a fixed budget cost, while others will release the funds in stages based on what is completed. An example of what can be done with a self-build is the Monocoque Cabin project we completed.

Typically, the better your finances are and the things you can put down as loan contingents, the more likely you are to secure favourable loan terms. For example, if you can put down the Architectural plans and project proposal, this will carry a weight. Moreover, if you have another property, it might be worth looking to have this re-financed. Ultimately, lenders base their rates and loan amounts on risk; how much of a risk are you to them? The lower the risk, e.g. are you putting a good chunk of capital in yourself, are your current debt/outgoings low, are you at the peak of your borrowing capacity already, and ultimately, can you afford any repayments? The better your financial position, the better the lending leverage you will have for getting a great deal on your self build mortgage.

There are also many things outside of your control, such as interest rates, which will have a big impact on your agreed-upon loan. 

It’s important to note that none of this is financial advice, and we recommend that you speak to a financial advisor before making any decisions.