You will find plenty of articles providing estimated budgets for self-building a house. We even have one for you. However, you should remember that these figures reflect ideal conditions with zero complications. The reality can often be harsher than the projections suggest, with costs rising rapidly just because you overlooked certain details. The truth is, there is a minefield of hidden costs in self-builds, and you need to know about them before breaking ground. Here are the factors that can increase the self-build price.
Surveys
Let’s imagine you’ve found a plot of your dreams – you like its location, the size is just right, the utilities are nearby, etc. However, just because everything seems fine on paper doesn’t mean that this piece of land is construction-ready. To make sure you won’t have unpleasant surprises during the project implementation, a land survey is a must. Typically, it costs £300 – £1,500+ per day, depending on the size and location of your plot as well as surveyor complexity. In exchange, you will get:
– land mapping and border confirmation;
– soil testing.
Soil tests are especially important since they help reveal issues that potentially hinder construction. You surely want to know if your area is unstable, water-bearing, or contaminated before you commit thousands of pounds to the build.
Site Access
Your construction project will likely involve heavy vehicles such as 8-wheel lorries or cement mixers. Naturally, the distance of your site from suppliers’ depots and main roads will affect the price of delivery. At the same time, the accessibility of the plot itself can play a huge role in budgeting. There must be at least a 3-meter-wide driveway and a wide entrance for such vehicles to manoeuvre, plus an ample space to unload materials.
If there is simply not enough space to move around, you may have to opt for smaller vehicles carrying less materials and hence requiring more trips. Along with that, you need to ensure that the driveway is well-drained and compact. Otherwise, drivers may refuse to make deliveries.
One more thing to keep in mind – there can be a strip of land along your plot boundary that is not part of your property. You may require it to assess the site. If its owner refuses permission, you will have to buy out this so-called ransom strip, pay compensation, or claim a defective title insurance.
Insurance
Project owners, especially smaller ones, reluctantly purchase self-build insurance. After all, even a 1% increase in a budget (this is how much such an insurance typically costs) is still a lot of money.
On the other hand, insurance can save you from financial troubles when something goes wrong – fire or weather damage, theft, vandalism, liabilities, the list goes on. If you face any of these, you are likely to spend way more than 1% of your total build.
VAT
As a self-builder, you probably know that you can reclaim the VAT paid on most construction services, building materials, and fixtures. However, to take advantage of this money-saving opportunity, you must meet two requirements:
• You can only make one reclaim.
• The claim must be submitted within three months of your home’s completion.
The completion date coincides with the date of the completion certificate issued by your building inspector. In some cases, you can alternatively submit a document confirming the final payment of a self-build mortgage. However, if you wait too long, you risk losing thousands of pounds in VAT reclaims.
One more risk for your VAT rejection is an ‘unlawful’ build. You should keep in mind that for works that weren’t originally included in your approved plans, as well as for added or altered parts of the build, you should first obtain written approval from the planning authority.
Contingency
Self-build projects rarely go exactly as planned. It is not in your power to predict every hiccup, but it is possible to protect yourself financially. Setting aside a contingency fund will help you bring your project to completion, even if unexpected expenditures and hidden costs come your way.
What kinds of surprises might eat into this reserve? Materials might arrive damaged or incorrect, poor weather conditions could keep workers off-site for weeks, you might face unexpected soil conditions or changes to the plan mid-build, etc. For these and other reasons, we recommend allocating an emergency fund equal to 10-20% of your total budget.
Are you looking for ways to bring down self-build prices? Consider hiring an experienced consultant quantity surveyor. At Peja Surveying, we can assist you with cost planning and minimise the budget at every stage of the project’s life cycle. We cannot predict the unpredictable, but we can help you avoid hidden costs in self-builds and keep your project on track from start to finish.
