Self-Build Costs
When looking at how much it will cost you to build your new house, there are a number of things to take into account: its size, its specification, the number of storeys, the region you live and your own level of involvement in either managing the build or undertaking the building work.
Build Options
The range of build options you have are (from the most expensive to the cheapest):
- Using a main contractor or a design and build package supplier for the whole job.
- Using a main contractor (such as a local building firm) to build the house to the wind and watertight stage and using sub-contractors for the remaining work.
- Using local sub-contractors and buying materials directly from suppliers or merchants.
- Doing the work yourself with the help of sub-contractors and buying materials directly from suppliers or merchants.
The cost per square metre for building a standard quality three to four-bedroom family home can vary from around £630 per m sq in northern England using the DIY method, to around £980 per m sq in Greater London for a job using only a main contractor. However, increasing the build quality from standard to excellent can add a further £250-350 per m sq on to the costs.
Additional Costs
Self-builders should also be aware that there are many other costs involved in building a new house, other than the building work and the land itself, which will make a considerable addition to your budget. The following table sets out some of the approximate costs that you may incur.
| Item | Approximate Cost |
|---|---|
| Land Cost | 30-50% of your budget |
| Site Survey | £350 - £400 |
| Design Fees | £5,000 - £10,000 |
| Planning Application Fees | £165 |
| Demolition Costs | £6,000 - £7,000 |
| Structural Engineer's Fees | £400 - £500 |
| Building Inspection Fees | £190 |
| Scaffolding and Plant Hire | £1,750-£3,000 |
| Connection of Services | £2,000 - £6,000 |
| Creating Driveway onto a Public Road | £4,000 + |
| Self-build Insurance | £500 - £800 |
| Warranties | £600 - £1,000 |
| External Works | 15% of build costs |
| Legal Fees | £5,000 - £6,000 |
Contingency Fund
When working out the total costs for your self-build project, you must make sure that you add in a contingency fund of around 20% of your estimated total building costs - it's very rare for a self-build project to be completed within budget and this extra money will help to cover the cost of any problems that arise during the building process.
Getting Finance for the Build
If you're looking to finance the building costs for your new home, then you might find a self-build mortgage the best choice. Most lenders will offer you 75-80% of the cost of the land and building combined, although some may offer you up to 95%. The main difference between a self build mortgage and a house purchase mortgage is that with a self build mortgage, money is released in stages as the build progresses rather than as a single amount.
The average self build home costs £150,000 with around one third of the total budget spent on land.
