Most self builders need to know how to build a house on a tight budget. Very few are blessed with an uncapped fund for their dream home, so most will need to actively keep an eye on their costs at every stage of the build.
Here, we explain how to build a house for under £150,000, highlighting tips and great examples of projects that achieved the feat.
- Long-Term Savings
- Choose Basic, Add Luxury
- Design Fees
- Avoid False Economies
- Shop Well
If you want to build a house for under £150,000, you’re going to have to build a relatively small one. The bigger the house, the more bricks, blocks, flooring, roof tiles (and so on) will be required.
But it is worth bearing in mind that a small self build house, around 150m², would still be larger than a typical four-bedroom developer home, which might be no more than 100m².
Building a house with a complicated design is likely to increase both your labour and material costs so is best avoided if you want to keep costs low.
Georgian-style houses are great examples of elegant yet simple designs that are usually based on a simple box shape.
The addition of solar panels, heat pumps or smart home tech used to be prohibitively expensive for those building to a tight budget, but now are real alternatives to more mainstream options in terms of cost.
You will have to consider the initial capital cost, but do factor in how these measures will reduce your monthly living costs once you are moved in to your new house.
(MORE: The complete guide to self build)
Those who know how to build a house on a budget will likely all suggest that if you want to do the same, you need to be prepared to get stuck in.
The general rule is that if you get someone else to do it for you, you will pay a premium. (But do only take on tasks that you can complete competently and safely, otherwise it will be a false economy).
Areas you could do yourself include:
- project management
- buying materials
- basic landscaping
You’ll spend around 15% of your build costs on the external wall and, metre for metre, blockwork is considered to be the cheapest.
Your kitchen is a great place to reduce some costs without compromising on style or quality.
- Go to a smaller local firm for low-cost, high-quality units. Suppliers such as Pineland Furniture will be able to supply units with no chipboard or ply for less than £5,000 — cheaper if you paint them yourself
- Pick out the better ranges at high street names. The mainstream kitchen suppliers offer impressive ranges. Make the most of (almost-constant) sales or be prepared to negotiate
- Mix basic and luxury fittings. You can pick out standard carcasses from trade outfits and mix them with doors from high-end suppliers; you could mix standard units from Wickes with top-quality handles and worktops
Go to a recognised architect and you’ll expect to pay 10% of your build costs in design fees — that’s £15,000 on a project that probably doesn’t warrant this type of expenditure.
Architects really add value to projects where design is the number one priority, not budget.
Those looking to spend less than £150,000 shouldn’t forgo the design process but they should take a different approach. Start the process off with a pretty good idea of the kind of house you’d like to build.
Take those formulated ideas to someone with design skills but without the ‘Architect’ title — perhaps an architectural technologist or skilled local house designer (speak to local builders to get a few recommendations), who can then draw up workable planning and Building Regulations drawings for you.
This process will potentially save you £1,000s at the start of your project.
(MORE: 20 Homes Built for Under £200k)
When it comes to cladding, budget self builders will find either a blockwork/render or brick outer skin the most economical of all.
Timber framers looking to spend less on their cladding will find weatherboarding the most efficient and economical way of constructing that outer shell.
Of course, there are many choices when it comes to render solutions, but you should expect to pay £75/m² facing (it can go up to £125/m² with one of the anti-crack, self-coloured systems).
Those using brick should avoid the very basic wirecut facings but should be able to find attractive bricks at £300/m². You could also inject a bit of instant character by mixing together two or three stock bricks, which doesn’t cost any more than a uniform selection.
Those in a stone belt might be able to save money by specifying reconstituted stone but if planners insist on real local stone, try specifying it as a half-cut facing (similar to a brick slip) to save money on materials. Unfortunately, a lot of the cost of stone is in the laying, which you won’t be able to avoid.
When thinking about how to build a house on a budget, it is all about choosing the right design options that have significant cost-saving implications.
Do You Need a Chimney?
For example, very few ordinary developer houses have regular chimney stacks — as many houses so rarely have traditional open fires these days, a traditional chimney is not essential. Replacing a chimney with an exhaust vent terminating at a subtle roof grille will save between £2-5,000.
If you’re really keen to save every penny, you’ll also be interested to learn that most developers put in conventional ‘fink’ roof trusses rather than attic trusses (which allow the attic space to be used as a room) — it can save between £1-3,000. But if you want to convert your roof into living space in the future, fink roof trusses are difficult to reverse and a false economy.
Go for an Attached Garage
Another significant saving that can be enjoyed with less implications down the line is to specify an attached rather than detached garage. Not only is there a saving on basic structural material costs, but it’s much easier for electricians to lay on services to an attached garage rather than one 5m from the rest of the house. You should be able to save £2-5,000 this way.
Another potential saving is in the heating system — owing to the huge variety of options now available. A top-of-the-range heating system, complete with underfloor heating, designer towel rails, controls and a high-quality boiler, could easily cost £5-7,000 (unfitted).
A basic setup, however, with a standard condensing boiler and cheap radiators, will cost in the region of £1,500-2,000 (unfitted).
Being clever with your materials shopping – and playing suppliers off against each other – can save £1,000s on the bigger purchases.
Use the internet to research prices and don’t be afraid to negotiate. Of course, this all means that it’s much better to buy your own materials — it’s both unlikely that a builder will negotiate as hard on your behalf and also that they will pass on the full benefits of cost reductions.
Don’t forget, too, that you’re in the market for labour as well as materials. It pays to contact a range of local tradesmen in order to do this – “X down the road says he’ll do it for £100 a day…” – but bear in mind that if you end up paying ridiculously under a reasonable rate, the tradesman will simply move onto a better paying job if, and when, it comes up.