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Fee Structure for Self-Build Homes or Renovations

How much does it cost to build a house in 2023?

We know that creating your dream home is a significant investment and you want to go into it knowing what to expect when it comes to budget. When you decide to build a house, the building costs are always fluctuating and can depend on the location, size, style, materials, and labour involved in your project. Here, we give an idea of what to expect when building a house in the UK in 2023.

According to recent data from the Royal Institution of Chartered Surveyors (RICS), the average cost to build a house in the UK is between £1,750 to £4,000 per square metre. XUL Architecture design premium homes in North and Central London and estimate the cost to build a house there is £3,000 to £4,000 per square metre. This estimate includes the cost of materials and labour, but does not include the cost of land or any additional fees.

Using this estimate, we can calculate the average cost to build a house in the UK based on the size of the property. For example, a typical three-bedroom house with a total floor area of around 100 square metres would cost between £175,000 to £400,000. This estimate is based on numerous assumptions and it is important to note that each project to build a house is different.

The cost of building a house is usually impacted by the following factors:

Location

The location of your property can have a significant influence on the cost of construction. For example, to build a house in London or other urban areas is likely to be much more expensive than building in rural areas thanks to higher labour and material costs, as well as a higher demand for housing. You might also need to consider whether you are in a conservation area and the costs of permits and fees needed for construction.

Size and style

The cost of construction might also come down to the size and the style of the house you’re aiming to build. A larger house will require additional materials and labour, while more complex and intricate designs may need specialised equipment and experience, driving up the overall cost.

Materials

We know that the cost of materials is rising and this is something to factor in when planning to build a house. You might have to make some clever design choices and choose where you can splurge and where you can save. High-end materials like marble and wood will always command a higher price point.

Labour

The cost of labour is a considerable part of your spend when you decide to build a house. You may need to factor in architect’s fees, engineer fees, contractor costs, and other professionals like party wall surveyors. How much a contractor charges can vary depending on the skills required and the construction methods used.

Permits and fees

You also want to consider the cost of permits and fees associated with the effort to build a house and gaining approval for the work, for example, planning application fees and building regulation costs.

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