The cost of building your new home will depend on its size, the number of storeys, its specification, the region you live and your own level of involvement in either managing the build or undertaking the building work. The range of build options you have are (from cheapest to most expensive):
- Doing the work yourself with the help of sub-contractors and buying materials directly from suppliers or merchants.
- Using local sub-contractors and buying materials directly from suppliers or merchants.
- 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 a main contractor or a design and build package supplier for the whole job.
 |
| The average self build home costs £150,000 with
around one third of the total budget spent on land. |
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
You should be aware that there are a number of 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 tables 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 |
| Legal Fees |
£5,000 - £6,000 |
| Design Fees |
£5,000 - £10,000 |
| Structural Engineer's Fees |
£400 - £500 |
| Planning Application Fees |
£165 |
| Building Inspection Fees |
£190 |
| Warranty |
£700 - £1,500 |
| Self-build Insurance |
£500 - £800 |
| Connection of Services |
£3,500 - £6,000 |
| Demolition Costs |
£6,000 - £7,000 |
| External Works |
15% of build costs |
When working out the total costs for your self-build project, it is essential to have 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
If you're looking to finance your new home, then you might find a self-build mortgage the best choice. 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.
Most lenders will offer you 75-80% of the cost of the land and building combined, although some may offer you up to 95%. Our mortgage section has more information on self-build mortgages, along with details of the stages that money will be released.
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