Building your dream home is an exciting venture, but it requires a clear understanding ofcosts to ensure a smooth process from start to finish. With fluctuating material prices and labour costs, self-builders are more concerned than ever about how much it truly costs to build a home in 2024. Whether you're leveraging offsite construction methods or traditional building practices, controlling costs and sticking to a budget is crucial to the success of your project.

In this guide, we’ll walk you through the key factors that influence self-build costs, how to estimate your budget, and how The Modern Builder platform can help you streamline and control costs from start to finish. To find out more about how the platform works, please have a look at our 10-step guide blog post.

The first step in calculating your build costs is determining how much you can afford to spend. This requires looking at all available funds, including savings, equity from existing properties, and any potential funding from a self-build mortgage. Once you have a ballpark figure, you can subtract the cost of the plot (typically 30-40% of the total spend) to determine the amount you have left for the construction itself.

With this rough figure in hand, you can then compare it to average build costs per square meter. In 2024, the cost of building a home can vary greatly depending on your involvement and the level of professional management. For instance, self-builds can range from £1,900 per m² for a hands-on self-build, to over £3,200 per m² for a turnkey solution where all project management is handled by professionals. This gives you a starting point to figure out whether your budget aligns with your desired build quality and size.

The route you take in managing your build can significantly influence the overall costs. Here’s a quick breakdown of typical routes:

• Turnkey Design & Build Package (£3,200+ per m²): With this option, a single company handles everything from design to construction. While it comes at a premium, it’s ideal for those looking for a stress-free experience and minimal involvement during the build.
• Main Contractor Build (£2,750+ per m²): If you prefer some involvement, hiring a main contractor to manage the bulk of the project is a more cost-effective solution. You’ll have some input in key decisions without needing to manage every detail.
• Independent Project Manager (£2,500+ per m²): An independent project manager is a middle-ground option for those who want to retain control but need professional support to oversee the build quality and schedule.
• Self-Managed Project (£2,100+ per m²): By taking charge of trades and materials yourself, you can save significantly. However, this option requires considerable time and organisation to manage successfully.
• Hands-On Self Build (£1,900+ per m²): If you’re actively involved in the construction process, doing some of the work yourself, this can offer the greatest savings, though it demands the most time and effort.

To arrive at an accurate build cost estimate, there are various elements to consider beyond just the price of materials and labour:

• Demolition: If there are any existing structures to be removed, demolition costs can add £10,000-£15,000 to your budget.
• Survey Fees: Expect to budget for soil surveys, ecology reports, and any necessary ground investigations, especially if your plot has tricky terrain.
• Ground Conditions: Sloping plots or poor soil conditions may require engineered foundations, which will push up groundworks costs.
• Utilities & Services: Be sure to obtain quotes for electricity, gas, water, sewage, and any other services before purchasing your plot.
• Professional Fees: Planning, design, and engineering fees typically range from 10%-15% of your total build cost.

Your design choices will have a direct impact on the total cost of your project. While basic materials and standard fittings help keep costs low, opting for luxury features like high-end finishes, home automation, or bespoke kitchens will increase your budget. At the high end, projects with premium specifications can cost £5,000-£6,000 per m².

To stay on budget, it’s essential to finalise as many design decisions as possible before the build starts. A two-stage design freeze is a good strategy to control costs: first, before submitting for planning permission, and again before finalising the building regulation drawings. This way, any changes made after this stage will be easier to manage and their impact on your budget can be minimised.

The price of land is another major factor that will affect your overall budget. The cost of plots varies across regions, but most plots fall within the £100,000-£299,000 range. It's important to assess what kind of land fits your budget and build aspirations. For example, a 150m² house would typically fit well on a 0.2-acre plot, while larger plots may attract developers, pushing up the price.

If you're lucky enough to secure a good plot at a reasonable price, ensure you account for any additional site preparation costs, such as removing existing structures or tackling complex ground conditions. To learn more about how to find the right plot for you, please have a look at our blog .

At The Modern Builder, we work with you from the earliest stages of your project to help you streamline your budget and manage costs effectively. We offer the following services to ensure your project stays on track:

• Affordability Check: We recommend a free affordability check with our finance partners, The Hanley Economic Building Society. Their expert team will help you understand your borrowing power and plan your budget accordingly.
• Cost Estimates Based on Design: Using pre-designed house templates from our suppliers, we help you create a base cost estimate to gauge how much your project will likely cost. At this stage, we recommend building in a significant contingency fund for unforeseen costs.
• Supplier Comparisons: Once your design is complete, we help you compare quotes from various suppliers and contractors. This ensures that you get the best value for your money without sacrificing quality.
• Cost Certainty at Planning Stage: By the time you’re ready to apply for planning permission, you’ll have approximately 70% cost certainty. While changes may occur during the planning process, our comparison schedule will give you clarity on how these changes will impact your final budget.
• Design Freeze: We implement a two-stage design freeze to help you control costs. The first freeze occurs before planning permission is submitted, and the second before building regulations are finalised. This allows for a more stable budget as you move forward.

Building your dream home doesn’t have to break the bank, but it does require careful planning and budgeting. By working with The Modern Builder, you’ll have access to the right tools, partners, and expertise to ensure that your self-build project is completed on time and within budget. From initial affordability checks to comparing supplier costs, we’re here to support you at every stage of the process.

Ready to take the next step in your self-build journey? Get in touch with us today to start planning your dream home.