"Our new homes market is crying out for the greener and higher quality build that goes hand-in-hand with more consumer choice."
Currently there are around 15,000 of these types of homes built every year – an increase of 50% in the last two years.
In a statement, the Government said there is "still more to be done to support the self and custom build industry", last estimated be worth almost £4.5 billion to the UK economy.
Councils are currently required to keep a register of those who wish to build in their local area. And by 30th October each year – ‘Right to Build’ day – councils should have granted planning permission to enough suitable plots to match the demand on their register.
The review announced today will examine how effectively these arrangements support self and custom building, including whether they increase land available the to support these homes.
To increase transparency, help understand how councils are meeting the needs of their communities and also support developers understand the demand, the data councils collect on self and custom build in their area will now be published annually.
The Housing Secretary has also written to councils to ensure they consider the demand for these homes when providing land for build and making planning decisions in their area.
Housing Secretary, Robert Jenrick, said: "We are backing people who want to design and build their own home and today I have launched a review to ensure councils provide enough land and take proper consideration for these homes both when making planning decisions in their area.
"This will help more people get a foot on the housing ladder and support our building industry as we deliver the homes that this country needs."
Andrew Baddeley-Chappell, CEO of the National Custom & Self Build Association, commented: "England has the lowest known rate of self-commissioned homes in the developed world. Our new homes market is crying out for the greener and higher quality build that goes hand-in-hand with more consumer choice. Housing diversification is key to the government’s housing strategy.
"This excellent announcement today by the government should help many more people achieve the dream of living in better and more beautiful homes."
Richard Bacon, ambassador for the Right to Build Task Force, added: "For many years I have campaigned to increase real choices for the large number of people who want to build their own home or commission a home to their own design from a local SME builder. This led to my private member’s bill becoming the Self-Build and Custom Housebuilding Act, which the government has subsequently strengthened.
"I warmly welcome the government’s review of the current law. Some local councils are already doing an excellent job in providing more opportunities but some others are not yet supporting the spirit of the legislation and have some way to go if they are to grasp the huge opportunities for more and better housing which greater customer choice offers. We need to make sure every council is able to deliver on this important agenda which will help provide more high quality homes."
