Is self build an affordable way to own property? Find out how much it costs to build a house and what kind of self-build you should do.

Alexander Project Management provide self build project management throughout  Leighton Buzzard, Bedfordshire and Buckinghamshire. We look at why you should consider a self build home.

Is it cheaper to build a house?

One of the most significant advantages of completing a self-build is how much cheaper they are to purchase a pre-existing property or finished household. 

In 2018, it was reported that the average cost of a UK plot of land was around £190,000, and the typical construction costs for previous clients sat at £270,000, totalling around £460,000 for market value.

Many properties available on the open market often cost much more than homes you may build entirely from scratch. Included in the design fees and costs of any ready-made home, you'll also find that you're paying for convenience as well as labour, land, building materials and any furnishings, if any are included. 

Building from the ground up can help save money and tax savings, primarily stamp duty, which is a tax you face paying when buying a residential property or land within England and Northern Ireland. Self-build homes may make you eligible to claim at least 20% VAT on your used materials.

Why build your own house?

For those building households on their own, you'll be pleased to find out that it will usually be worth much more in value than what it will cost to build. 

However, you must ensure that the project is well-managed for your value price to increase. When you build your home, everything must go to plan, and you should aim to stay within your budget for your ideal home to achieve a fraction of a standard home's market price.

Another reason why building your own home is a fantastic option is that it can allow you to incorporate features that are costly to install into a pre-existing home or one that you have to rent under a housing association. 

For example, you may wish to include luxuries such as elaborate extensions, underfloor heating, and green or energy-efficiency features like solar panels and special roof beams. In adding these factors yourself, you can obtain them for a fraction of the installation costs inside a pre-existing property.

What Does A Project Manager Do In Construction?

What kind of self-build should I do?

How much does it cost to build a house?

COVID-19 resulted in spouts of inflation and a dramatic change in the cost of living and the cost of households across the UK. The lack of homes on the market and the pent-up demand has caused purchase prices to surge within the previous year.

Rightmove has stated that, at the beginning of December, the average asking price for a UK three-bedroom house has dropped to costs of around £359,137, which, according to previous months, is down by approximately £7,862. With the ever-rising standard mortgage deal rates and our current living crisis, the majority of homeowners, first-time buyers and potential property builders, will be searching for the cheapest ways to obtain homes on the property market.

Around four million of the UK's mortgage brokers and holders are expected to see monthly payments soar in the coming year. One way to save cash and tackle your housing situation is by undertaking the ultimate DIY endeavour by choosing to build your own home or completed property.

Building costs throughout the UK have been estimated to be around £1,800-£3,000 per square metre. The average property in the UK has three bedrooms and typically measures around 72 square metres or 800 square feet. For a self-building project of this kind, you can expect to pay anywhere between £133,000-£222,000.

It can be a little bit more challenging to obtain a self-build mortgage compared to a standard one, as the application process is much harder and more complex, and there are fewer products to select from.

Map out your floor plans and building regulations drawings with as much detail as possible, and utilise the help of specialist providers such as a talented local engineer or architect where you can. They will be able to provide you with accurate measures that you can use to curate an accurate cost estimation.

Working out your budget to build your own house

It's best to thoroughly scope out your local area before you begin plotting and building your own home; you want to ensure that your new build design is primarily unique to your desired area rather than something you can find with a few searches. In doing so, self-builders will find that their new build project is much more worthwhile.

Suppose you find one that's a similar design to the floor plan and layout you have in mind, then you can figure out whether or not it would be cheaper to purchase that home at its asking price, if it is on the market, or to proceed with your new build replica.

If the similar home you have spotted would require some work and adjustments to ensure it truly matches what you had in mind. In that case, when figuring out your budget, you also need to account for the renovation costs and additional costs for any planning permission applications you may require.

On the other hand, it may be cheaper to build your own similar version for a fraction of its current asking price; then it is something to consider. There are various aspects and costs involved when starting any self-build project, whether big or small. However, since building your own home is a much bigger project to tackle, you must be extra careful, as it can spiral out of control if your monetary decisions aren't realistic or practical.

You must begin by considering these factors:

Are you considering a self build home in Bedfordshire or the surrounding areas? Our chartered civil engineer specialises in project management throughout all stages of the process.