Free Expert Advice at Build It Live!
Come and see us 8th & 9th June for a whole weekend of self build inspiration
For info & free tickets worth £24 click hereCome and see us 8th & 9th June for a whole weekend of self build inspiration
For info & free tickets worth £24 click hereEstimate your project costs instantly with Build It's interactive self-build cost calculator
Calculate NowGet an accurate, detailed cost breakdown of your project
Submit plansWe have a plot and planning in place and have received quotes back for the build of a 265sqm single storey house. The contractor came back with an initial quote that was close to £5000 per sqm, this included the build, M and E, external works, and green elements. We have value engineered it down to £3400 per sqm but this still blows out our budget for the project.
We have to make a call as to whether we can sit on the land for a year and start then or do we just sell the land and find another project that we can afford. To make this decision depends on build costs, what is the feeling about whether they will continue up, maintain or head down?
First things first, unless your build is highly complex or requires an exceptional specification, a budget of £3,400 per m2 is very healthy, even in today’s economic climate. Typically, the average self-builder manages to build for £2,000 to £2,500 per square metre. Even professionally managed builds generally cost less than £3,000 per m2. Having said this, there are many factors that affect cost, so projects should always be individually priced to reflect the actual requirements and costs involved.
Your question about whether build costs will continue to go up or down is the sixty million dollar question! Construction prices continue to be adversely affected by escalating energy and input costs as well as a national shortage of skilled labour brought about by Brexit and a declining labour pool.
On top of this, we still have a housing crisis and inflation has become a growing problem effecting every corner of daily life – construction is no exception. Whilst the Bank of England is taking steps to control inflation by raising interest rates, we are yet to see any meaningful impact from their recent interventions.
At some point, demand will ease and with it prices will come down. But I’m not convinced this will reverse the inflationary affects caused by global events or the institutional difficulties the construction industry faces.
Obviously, none of us have a crystal ball but my bet is that at some point, the Tory party merry-go-round will stop and, with it, a degree of stability will return. My hope then is that construction inflation will settle at more normal rates (3% to 5%) but I doubt we’ll see deflation, given demand will continue to outstrip supply.
Mark Stevenson (Build It Self Build Training expert & MD of Potton)