Self-Build Costs

When looking at how much it will cost you to build your new house, there are a number of things to take into account: its size, its specification, the number of storeys, the region you live and your own level of involvement in either managing the build or undertaking the building work.

• Build Options
• Additional Costs
• Contingency Fund
• Getting Finance for the Build

Build Options

The range of build options you have are (from the most expensive to the cheapest):

1. Using a main contractor or a design and build package supplier for the whole job.
2. 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.
3. Using local sub-contractors and buying materials directly from suppliers or merchants.
4. Doing the work yourself with the help of sub-contractors and buying materials directly from suppliers or merchants.

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.

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Additional Costs

Self-builders should also be aware that there are many 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 table sets out some of the approximate costs that you may incur.

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Contingency Fund

When working out the total costs for your self-build project, you must make sure that you add in 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.

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Getting Finance for the Build

If you're looking to finance the building costs for your new home, then you might find a self-build mortgage the best choice. Most lenders will offer you 75-80% of the cost of the land and building combined, although some may offer you up to 95%. The main difference between a self build mortgage and a house purchase m...