Advice on setting a self-build budget
Setting a self-build budget
Budgeting for each stage of your self-build project is crucial and can help you keep better control of your finances.
Creating a self-build budget checklist and schedule will add structure to your plans. Don’t forget to bear the below in mind during the process:
- The bulk of your budget will go on the plot of land itself. The total amount depends on where you live but a good rule of thumb is 30-40% of your total spend.
- Labour costs take up a significant chunk of your cash. The figure will vary depending on how much work you do yourself and what construction skills you possess, but a ballpark figure is a quarter of your budget. Shop around and get as many quotes as possible.
- Put aside around 1% to connect to utilities if your plot is in an urban location. The costs will be higher in less populated areas, so it’s important to research connection fees beforehand.
- The cost of materials varies depending on the design choices you make, but 20% is a good broad figure to work from. Remember to compare costs, get as many quotes as possible and negotiate – it could save you tens of thousands in the long run.
- Set aside at least 7% for professional services such as lawyers, surveyors and engineers.
- Always set aside a contingency fund of 10% to 20% to act as a cushion against unexpected costs.
- Aim towards the higher percentage if there is a slope on your build site or the site could have unforeseen issues.
Can I afford to build?
There is no one answer to the question as there are various factors surrounding your personal circumstances. The state of your finances, where you live, and the type of home you want will all have an impact on your self-build budget.
The good news is that there are self-build budget calculators to give you an idea of the costs involved and what options are available to you. To find out more, visit: www.self-build.co.uk/build-cost-calculator/build-cost-calculator-house-page/
With materials accounting for a high proportion of typical building costs [around 65%, compared to 35% for labour and fees] getting a good understanding of the cost of materials for your project is critical. The choice of materials can also have a big impact on other costs such as labour [if skilled labour is needed to install your materials] and on running costs.
Did you know?
Build Aviator offers a detailed estimating service to give you a full breakdown of the costs of all the materials you need for your project. Their experienced Quantity Surveyors have years of experience and are able to itemise everything you need to help you understand, and stick to, your budget.