How Much Does It Cost To Build A House?
Building your own home is a dream come true for many people.
However, it is important to be careful about your costs so your dream doesn’t become a nightmare. Industry research indicates that it costs around £140,000 - £152,000 to construct an average house.
Some costs are fixed but many vary.
Variants are largely due to the type of house you want and the level of involvement from tradesmen.
Costs involved in funding your house building project
Firstly, you will need to determine whether your self-build is going to be a valuable investment or not.
Work out whether the money you put in is going to be less than the eventual value of your home.
Self-build lenders will be keen to see this calculation.
Mortgages from self-build lenders are available on the market.
You will need to see how much you can borrow coupled with any savings you have to put into the project.
Buying land and costs
The cost of a plot of land makes up a large portion of a self-build budget.
You may already have an idea of the land you want and how much it will be.
Alternatively, if you are looking for land there are many sources available on the internet.
Don’t forget you will have to pay stamp duty on land purchased as well as any legal fees.
•Plots from £60,000 - £150,000 require 1% stamp duty to be paid
•Plots £250,000 and over will need to have 3% stamp duty paid
•Over £500k and you will have to pay 4%
If your property is worth less than £60,000 then you will be exempt from paying any stamp duty.
House building contractor costs
Although some of the work you might want to do yourself, there are jobs that require professionals to come on board.
Hiring architects, electricians and plumbers will have a cost implication.
Prices will differ according to the work you need done and the area in which you live.
Be as detailed as you can in your brief; write down exactly what you require as this will enable you to get an accurate quote from a tradesperson.
They may want to charge by the hour, day or, for large scale work, they may give you the option of a payment plan while the work is being done.
Planning application costs
Some buildings come with planning permission already gained. If not, you will have to apply to your local authority for this and there will be a cost of approximately £335.
Other costs involved in building a house
•Building regulations – by law all new houses must meet with the stipulations set down by the Building Regulations Authority.
Inspections cost around £500- £800.
•VAT – It is possible to claim VAT back on most building materials apart from some soft furnishings.
•Costs for electricity and gas connections vary from site to site depending on how close you are to existing supplies.
Allow for £2000 - £8000 to be connected.
•Interior fixtures and fittings all accrue costs; exact amounts depend on your own personal ideas.
•Land Registry Fees will have to be paid to HM Land and Registry.
These cost between £40 - £800 depending on the value of your home.
