Are you wondering “How much does it cost to build a house?” If so, you’re not alone. Many people are interested in building their own homes, attracted by the prospect of creating a custom-designed space that perfectly suits their needs. However, it’s important to keep in mind that the process can be extremely costly, with various factors contributing to the overall expenses. Read on to find out how much it could cost you to build your dream house. 

Purchasing the land

The first major expense when building a house is purchasing the land. Land prices vary significantly depending on location, size, and proximity to amenities and transport links. Rural areas and regions with high demand, such as city centres typically have higher land prices. We recommend researching local property markets and consulting with local estate agents to find suitable land within your budget.

Planning and design

Once you’ve bought the land on which you will build your new home, the next step is to obtain planning permission and develop architectural plans. Planning permission fees vary depending on the complexity of the project and local regulations. Additionally, hiring an architect or architectural designer to create detailed plans and drawings will incur additional costs. However, investing in professional design services ensures that your home not only meets your needs but that it complies with building regulations.

Construction costsHouse Extensions in Grimsby

Construction costs are one of the biggest expenses when building a house. These costs include materials, labour and equipment hire. The cost of materials can vary significantly depending on the type and quality, including whether you opt for a standard or high-end finish. Labour costs include skilled tradespeople such as bricklayers, electricians, plumbers, and plasterers, with rates varying depending on experience and location.

Interior finishes 

Beyond the basic construction costs, you’ll also need to budget for the interior finishes of your home, such as flooring, worktops, cabinets and fixtures. The cost of these finishes can vary widely depending on your preferences and the quality of the materials you choose. Higher-end finishes such as hardwood flooring and granite worktops will typically be more expensive than more budget-friendly options. Additionally, labour costs for installation should be factored into your budget, especially if you’re hiring professionals for the job.

Site preparation 

When people ask us “How much does it cost to build a house?”, they’re often surprised when we mention site preparation as an expense. Site preparation involves clearing the land of vegetation and ensuring proper drainage, amongst other tasks. These steps are crucial for creating a solid foundation for your home. However, they can also be costly, especially if the site is uneven or heavily wooded. Additionally, you’ll need to take into account the expense of installing utilities such as water, electricity, and sewage systems. 

Additional expenses

Building a house can throw up all sorts of surprises, from unforeseen construction delays to unexpected material costs, impacting your budget. This makes a contingency fund an absolute necessity. Ideally, this should be around 10-15% of the total project cost to allow you to cover any unexpected costs or delays. Additionally, you may incur expenses for building inspections, insurance, legal fees, and VAT, which should be factored into your budget.

New builds in Brigg

Building a house is a significant financial investment, but with careful planning and budgeting, it’s possible to achieve your dream home without spending more than you can afford. By understanding the various costs involved, from buying the land to construction materials and labour, you can develop a realistic budget and ensure that your project stays on track. 

Working with a reputable construction company like High & Dry Renovations, help streamline the building process and minimise costs. At High & Dry, we specialise in building high-quality homes tailored to our clients’ specifications. With our vast knowledge and expertise, we can guide you through every step of the building process and deliver a home that exceeds your expectations. We’ve designed and constructed many new builds in Brigg over the years, ensuring that each project is completed to the highest standards of craftsmanship and attention to detail.

New Build Home Scunthorpe

Funding options for building a house 

When considering how to fund your self-build project, it’s essential to assess your financial situation carefully and explore all available options. Additionally, seeking advice from a financial advisor can help you make informed decisions tailored to your circumstances. Funding options for building a house include: 

  • Self-financing. If you have savings, you can use these funds to finance your home construction project. This method eliminates the need for a mortgage and allows you to avoid paying interest.
  • Mortgage. You can obtain a self-build mortgage to finance the construction of your home. With this type of mortgage, funds are released in stages as the project progresses.
  • Specialist self-build lenders. Some lenders specialise in providing finance for self-build projects. They understand the unique requirements of self-builds and can offer financial products tailored to your needs.
  • Government Schemes. There are various government schemes aimed at assisting self-builders. These include the Help to Buy Equity Loan scheme and the Right to Build scheme. Researching these options can help you access additional funding or support.
  • Construction loans. Construction loans are short-term loans intended to cover the cost of building a home. Once construction work is complete, the loan is typically converted into a traditional mortgage.
  • Remortgaging or equity release. If you already own property, you might choose to remortgage or release equity to fund your self-build project. This involves borrowing against the value of your existing property to finance the construction.
  • Personal loans. Whilst it’s less common for large-scale projects like building a house, a personal loan can be used to cover some construction costs. However, they usually have higher interest rates compared to mortgages or specialist self-build loans.

Contact us

If you’re still wondering “How much does it cost to build a house?”, why not get in touch? Our friendly team are waiting to discuss your requirements with you and provide you with a quote for your project. Whether you have questions about the building process, need advice on budgeting, or are ready to start planning your dream home, we’re here to help with new builds in Brigg. You can reach us by phoning 01652 808 049 or by sending a message via our website.