AH Design Blog

How much will it cost to build your dream home?

How much to design and build?
 
Before you start thinking about building your dream home you should consider the all costs and fees that are not part of the materials and labour.


Here are the costs and fees that need to be considered:

Stamp Duty: Self builders only pay stamp duty on the cost of the land, not on the value of the completed property or build costs.

Site Survey: £500 to £750.

Legal Fees: £750 to £1,500.

Design Fees: Ranges from 4% to 12%, depending on the services you require. Design and planning only is around 4%. Design, planning & building regulations would be around 6%. 

Structural Engineer Fees: £750 to £1500 for a straightforward design, considerably more for a bespoke or complex structure. 

Planning Application Fees: £335. 

Building Regulations Fees: £500 to £800. 

Self Build Insurance: £600 to £1,200, depending on the value of the project. 

Warranty: Most lenders will require you to have a structural warranty certificate, which will provide you with 10 years cover for any defects with the materials or structure of your house. There are several warranty providers, ranging on cost from £1,400 - £3,500.

VAT: You can claim back all the VAT with a new build, conversion of a non-residential dwelling and residential properties which have been vacant for 10 years or more. This does not apply to professional fees. A reclaim application must be made within three months of your final completion date and provide all the relevant documents, receipts and certificates required. 

Renovation work is charged at a reduced VAT rate of 5% on properties that have been empty for two years or more, so make sure you inform your builders and check your invoices that they have not charged VAT. 

Cost will be the main deciding factor when choosing a construction method, but make sure you consider your particular circumstances. How much work do you intend to do yourself, as this will affect how much money you have to spend? How quickly do you want to build? This is particularly relevant if you are in rented accommodation while working on your project. Do you intend to project manage? And when are you planning to start your build? Remember winter isn’t ideal for masonry work. We’ve listed the main build options to help you decide which is right for you.

Construction Methods
Brick And Block: £900 to £1,100 per sq metre
This method is used for around 60% of self builds, especially by those who are looking to keep costs down and do some of the work themselves. It’s a quick construction method, but work must stop in bad weather, so plan carefully. One benefit is there are always plenty of local trades that work this way and therefore competition keeps the costs down.

Timber Frame: £900 to £1,100 per sq metre
This is the second most popular construction method, used by around 30% of self builders. There are a number of suppliers in the UK and the benefits are that it is quick to build on site and a weather tight shell can be achieved early in the build process.

Insulated Concrete Formwork: £1,000 to £1,200 per sq metre
Hollow polystyrene blocks filled with concrete. Quick to assemble, and well suited to self-builders and can be used to produce thermally efficient buildings.

Structural Insulated Panel System (SIPS): £1,000 to £1,200 per sq metre
Wooden insulated panels are made off site, meaning they’re quick to erect. No room for adjustment on site, and access needed for a crane.

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