How much does it Cost to Build a House?

Creating your own property from scratch can be a fun and rewarding project – but exactly how much does it cost to build a house here in the UK?

cost to build a house

If you don’t have settled on moving home and/or simply don’t think a refurbishment or renovation job is going to give you what you want in a property, then it might be worth thinking about commissioning the building of a new house altogether. If you have the time and money to get the work done before you have to leave it can be a great way to start life afresh – in a home all of your own design! But what is the cost to build a house like in the UK? And what kind of home are you looking to build?

Type of House Building

In the UK there are three main types of new build that most potential home-owners need to choose between:

1. A Masonry House – a masonry property or new build is designed with a bricks and mortar frame-work, and is the most popular choice for new builds across the UK.
2. A Timber House – timber-framed homes are more popular in the US, and can be built a little bit cheaper and easier to build than masonry skeletons – but aren’t always considered as durable and long-lasting.
3. A Flat-Pack House – finally, a flat-pack home is your cheapest new-build option; just don’t go expecting anything too luxurious in size and structure.

Cost to Build a House Checklist

While the type of house you purchase (as outlined above) will affect the overall pricing of a new build, there are some other factors in the building of a new home that you will also need to take into account when calculating your final budget. To help you get started, we sourced some tentative estimates based on each of the following – but equally important – home building considerations:

  • Purchasing a Plot of Land – essential for all new builds, this can cost anywhere between £80,000 – 120,000.
  • Planning Permission Applications – also absolutely necessary for any kind of building work, planning permission applications will usually set you back around £335 a go; but it is always good to check pricing with your local authority first.
  • Building Regulations Approval – this includes any preliminary inspections of the site and your chosen materials and workforce, and usually costs around £500 – 1000.
  • Warranties and Insurance – all labour and materials must be covered by an approved warranty scheme to ensure the project can be completed. This usually amounts to 1-2% of the total cost to build a house.
  • Stamp Duty Land Tax – stamp duty is only applicable if your new home is a residential property that will end up being worth more than £125,000, or a non-residential property or piece of land worth more than £150,000. The final sum is usually worked about HMRC after you and your solicitor fill in the appropriate return form.
  • Land Registration Fees – land registry fees vary wildly depending on the nature of your building application, and the final value of your new property – but usually fall somewhere around the £200 – 500 mark.
  • VAT – value added tax is currently charged at a rate of 20%; but it can usually be claimed back on all building materials for those wishing to build a new home in the UK.

Hiring a Builder or Tradesman

The final thing you will need to budget for is hiring the right builders, contractors and workforce to build the new house for you. This obviously includes general bricklayers and building contractors, but might also include project managers, architects, quantity surveyors, plumbers, electricians, and even interior designers. This means paying for separate fees and bills across the board, but these individual traders often prove essential to getting a new build up to scratch. Even when you factor most of them into the equation, building your new house by yourself will still only set you back around £90,000 – 140,000 on average (according to our research); which is much, much cheaper than the figures on the current UK housing market!