Non-Standard Construction in the UK: A Guide to Financing the Unconventional
This article breaks down what non-standard construction entails, the types you’ll encounter, and the investment and financing challenges that come with them—whether you’re a homeowner, investor, developer, or just curious.
What Defines Standard Construction?
Modern standard homes are generally built with brick, stone, slate, or tile—collectively known as BSST. These materials are selected for their durability, fire resistance, and ability to withstand UK weather. Strict building regulations now guide their use, with bodies like NHBC setting quality benchmarks. As a result, standard homes are easier and cheaper to insure and finance.
Categories of Non-Standard Construction
- Pre-War Construction
Before WWII, builders used materials like timber, cob, thatch, and wattle and daub—methods dating back thousands of years. These homes often have solid brick walls with lime mortar, sash windows, and traditional slate roofs.
Financing hurdles: Due to the age and non-uniformity of these homes, lenders see them as high risk. Mortgages are harder to obtain and often come with higher interest rates to offset potential structural concerns.
- Post-War Innovation
Post-WWI, a housing shortage led to a surge in experimental methods. From 1919 to 1976, over 500 building systems emerged. Solid walls gave way to cavity wall construction, now the standard for NHBC homes.
Financing hurdles: These homes tend to be valued lower due to limited mortgage availability and concerns about long-term durability, driving up insurance and maintenance costs.
- Modern Architect-Designed Homes
From the 1920s Bauhaus movement onward, architects began pushing creative boundaries, using steel, concrete, and glass in geometric, minimalist designs. For instance, many homes replaced pitched roofs with flat ones, which can improve space and maintenance but are often classified as non-standard.
Financing hurdles: Lenders typically require specialist evaluations to ensure these buildings meet modern codes. Because resale values can be uncertain, mortgages may be harder to secure and tailored more to cash buyers.
Converting or Building a Non-Standard Home
You’ll either be converting a non-standard home to meet standard criteria—or building a new one that doesn’t follow convention.
Converting to Standard Construction
Sometimes it makes sense—for instance, replacing a flat roof with a tiled one. But not all homes are eligible; steel frames or solid wall structures may always be considered non-standard. Evaluate the pros, cons, and costs before deciding.
Estimated Costs of Conversion
- Structural survey: £630–£1,200 (RICS Level 3). For metal frames, expect higher costs due to more invasive surveys.
- Architects: £5,000–£10,000+, depending on the project scope.
- Planning permission: Currently £624 for new builds or conversions in England.
- Labour: £112–£360 per day, depending on the trades involved.
- Materials: Varies based on type and quality—includes insulation, roofing, cladding, etc.
- Waste disposal: Manual clearance (£64–£94/hour) or skip hire (~£300).
Conversion costs differ depending on construction type. Pre-war homes typically cost more to convert than modern designs.
Financing Options for Non-Standard Construction
Specialist Mortgages and Bridging Loans
High-street banks are rarely a good fit for non-standard properties. Instead, look to specialist lenders or consider bridging finance—a short-term loan that fills the gap until longer-term funding is arranged.
Why bridging works: These loans can be arranged quickly (within 3–14 days) and are ideal for time-sensitive purchases like auctions. Bridging lenders also base valuations on market value, not purchase price—reducing deposit requirements.
Frequently Asked Financing Questions
- Can I get a mortgage? Yes, unless the property is deemed “defective,” in which case only specialist lenders might help, often at less favorable terms (higher interest rates or deposits).
- Is equity release possible? Yes, but it’s more complicated. You’ll need enough equity and must work with a lender who supports your property’s specific construction type.
Final Thoughts
Non-standard homes offer a unique investment opportunity but come with distinct financing and maintenance hurdles. Traditional lenders may not support them, but with bridging finance or specialist mortgages, they can still be viable purchases.
As the UK strives to build 300,000 homes annually, non-standard construction could become a practical solution to housing needs—especially for those willing to think outside the brick-and-tile box.
