One of the first questions you are likely to ask when considering a self-build project is "How much will it cost?"  On this page we hope to help you answer this important question. 

The first important point is that each self-build project is unique, so you should prepare detailed costings for your own project using information gathered from local builders and suppliers of services.  For this reason, the information provided below should be used as guidance only.

Three Main Costs

In order to establish your overall budget requirements, or to identify the size of home appropriate to your budget, your project should be divided into three main costs:

   A)   Land purchase costs (including legal fees)

   B)   Plot development and servicing (click here for a breakdown )

   C)   House construction cost  (see further information below)

   In simplest terms, this means that A + B + C = Total Budget Cost.

This basic formula should enable you to calculate your own individual requirements.

 

Build Cost per Metre Square (²)

There is a wide range of variation in the build cost per m² depending on any or all of the following reasons:-

1.   Location of your plot  -  Delivery costs, proximity to main building merchants, local labour costs, etc.

2.   Contractor costs and method of construction management  -  Getting a main contractor to manage the project on your behalf is usually the preferred method for most self-builders.  By choosing this method, once you have identified your design, agreed your overall building specification, and agreed on the build price, terms & conditions with your builder, your day-to-day involvement in the project is not required.  This is the easy option but it is also the most expensive approach to self-build construction management.

At the other end of the scale you may decide to manage the project yourself, perhaps even with an element of own labour.  Adopting this method means you act as main contractor and organise the individual trades.  It is a far more hands-on approach and is ideal if you are well organised, like a challenge and your budget is tight.  Acting as main contractor does mean that you have to allow for VAT in your cashflow, as you are only able to reclaim the VAT on a new build at the end of your project.  For further information on this please refer to the HM Customs & Excise website - www.hmce.gov.uk - and source their booklet called "VAT refunds for 'do-it-yourself' builders and converters".

3.   Supply and demand  -  the level of construction activity in your area will affect the availability and the cost of contractors and sub-contractors.

4.   Quality of fittings and provisional sums  -  the cost of your project will be directly linked to the quality of your kitchen units and bathroom ware, the use of special floor coverings, choice of light and heating systems, etc.

Generally we suggest that you allow somewhere in the area of £750 to £1100 per m² for the cost of the house construction.  It is possible to build for less than £750 and it is also possible for costs to be in excess of £1100 per m², but a cost within this range is a good guide.

Identifying the size of house your budget allows you to build

Another way of looking at your project planning is to identify the size of house you can build within your budget.  For example:

To calculate the size of house you can build with a total budget of £200,000.

   Total funds available            £ 200,000

   LESS

   Plot purchase price                                    £ 60,000

   Plot development & servicing                            £15,000

   EQUALS funds available for construction           £ 125,000

 

   Size of house available would be     £  125,000           =      £ 167m² - 114m²

                                             £ 750   -   £  1100

 

We hope you have found this guide helpful.