If you’re building your own home, the money side of things can be as stressful as the actual building. The choices feel endless, and everything seems to cost more than you expect.
It’s easy to get swept up in the idea that you have to go all-in on every detail with expensive features to get the home you want, but here’s the truth: knowing where to spend and where to save is what really makes the difference.
A good self-build isn’t just about having a big budget, it’s about being smart with what you’ve got. Whether you’re building for £150k or £1.5 million, the principle is the same: spend where it counts, and don’t waste money on things that won’t improve how you live. Here’s how I’d approach it.
SPEND on getting the budget right
It might sound strange, but one of the smartest places to spend money early on is getting your budget right, with real-world research and not ballpark guesses. People often build with just a rough idea of what they want to spend, but not much else.
The problem is, if you don’t know how much it will cost to build a house and how far your money will stretch, you’ll start making panicked decisions halfway through as you try to balance the books. That’s when budgets explode.
My advice is to invest at the beginning by spending time talking to suppliers, getting quotes, comparing options, and understanding the full scope of the build. Get a proper cost plan drawn up by working with a quantity surveyor or project manager. In my experience, a small outlay at the start can stop runaway costs later on.
SPEND on good design
Don’t rush into building before you’ve nailed the design – a well-thought-out plan is worth its weight in gold. It doesn’t mean throwing tens of thousands at an architect, but it does mean investing in someone who understands how to design a house that suits your brief, fits the site and can actually be built affordably.
Finding an architect or a good designer will help you avoid awkward layouts, complicated rooflines or overly bespoke detailing that’s expensive to build and even harder to maintain. By getting the detail of the house right before a shovel hits the ground, it will help you to avoid problems later on.
Remember, a change made on paper is cheap, compared to a change on site, which is when you start haemorrhaging cash.
SPEND on making it look good, but with restraint
Aesthetics matter. No one wants to live in a box with no soul, and kerb appeal counts – both for pride and resale value. The key is to choose materials that look great and perform well but won’t break the bank.
If funds are tight and you want to stop your build going over budget, you should focus on where the eye goes as this will make the greatest impact. For example, a striking front door, quality windows or cladding in a small feature area can elevate the whole look, without you having to spending a fortune.
Don’t splash out on expensive finishes everywhere if a reasonable, cheaper material will do just as well. A house that’s simple, coherent, and well-proportioned will always look more expensive than one that’s trying too hard with too many competing ideas.
SPEND on getting the fabric of the house right
If there’s one golden rule, it’s to invest in the bits you can’t easily change later. That means the walls, floors, roof, windows and especially insulation. This is your one shot to get the building envelope right and a fabric-first approach means you’ll need less heating and the building will just ‘feel’ better to live in.
Focus on improving insulation, airtightness, and avoiding thermal bridges to reduce energy leakage and lower energy costs. Kitchen upgrades can always be done later, so if a compromise is needed, in my opinion, this is where to make it.
SPEND on what matters most
Self-builds are a chance to create a home that really works for you, which means spending money in the places that matter most. If you’ve always dreamed of a big family kitchen, or a sun-filled garden room, don’t compromise on those spaces. This doesn’t mean overspending – it means prioritisation.
Often, people spread their budget too thinly across the whole house instead of focusing on the rooms they actually live in. The spare bedroom doesn’t need oak floors and designer lights.
Don’t feel guilty about creating one or two real wow rooms, especially if they’ll genuinely improve how you live. For example, your en suite, which you’ll use every day, is a space worth going the extra mile for. You’ll get the benefit every time you use it and if you’re honest about the spaces that really matter, you’ll probably find that you don’t need that cinema room.
SPEND on futureproofing
It might feel strange to be thinking about retirement if you’re building in your forties, but futureproofing doesn’t have to be an unnecessary expense.
Creating a lifetime home can involve simple choices such as opting for wider doorways, level thresholds, wiring for a potential lift, or having a downstairs bedroom or flexible living space, all of which can mean you will be able to stay in your home longer. It also makes your home more appealing to a wider range of future buyers.
Tech futureproofing is another area to consider. Ducting for electric car charging or solar cables, for example, can be added now for pennies compared to trying to retrofit them later.
SPEND on quality where it counts
There’s no point splashing out on things that no one will ever touch or see. But the things you use every single day – your door handles, taps, showerheads, light switches and so on are worth getting right.
Low-cost fittings wear out quickly and leave the whole place feeling cheap. So buy once by buying right. This doesn’t mean you need to get the most expensive version of everything, but you do want decent, solid stuff that works well and will still be doing its job in at least 10 years time.
When something feels high quality, you notice it – and when it doesn’t, you really notice it.
SPEND on keeping a tidy site
This often gets overlooked when managing a self-build, but a tidy, well-organised site sends a clear signal to every trade that you care about quality.
People do better work in a clean, professional environment. They’re more likely to show up, to respect your project, and to help you out when needed. It might mean spending a bit more upfront on welfare facilities, bins, or temporary access – but it pays you back by resulting in smoother progress and fewer headaches.
SAVE by not rushing decisions
There’s a lot of talk about time being money, but that’s not always the case. Rushing a build or trying to meet an artificial deadline can be a false economy. Yes, delays cost money, but so do mistakes.
Taking an extra week to double-check a design detail or hold out to find the right builder or subcontractor is, in my opinion, always the best approach. A few extra days spent thinking often saves weeks of fixing.
Also remember that convenience costs, and don’t overpay for speed if you don’t have to. Sometimes it’s okay to go slower and if you do, you’ll probably be less stressed and will enjoy the build far more.
SAVE on anything that doesn't add value
Before you spend, always ask "will this make the house better to live in, or more valuable if I sell?" If the answer’s no, don’t do it.
This means you’ll probably skip the gimmicky tech that sounds clever but won’t get used. Spend instead on natural light, good proportions, and things you’ll use like built-in storage.
SAVE by using proven methods
New technology often comes with a premium. Some of it’s fantastic, but a lot of it is expensive, complex and untested for the long-term. It’s also unlikely to be appreciated or valued by mortgage lenders or future buyers.
Unless there’s a clear reason to do something differently, stick with tried-and-tested materials and methods. I know this sounds old fashioned, but traditional construction systems and details are popular for a reason – they’re reliable, insurable, and cost-effective.
If you’re managing the build yourself, complexity is your enemy so think twice about using new systems, which are unfamiliar with the trades and add unnecessary risk.
SAVE on professional services
Designers and project managers – or for that matter anyone who charges on a percentage of your total build cost – are best avoided. Variable fees are a red flag and charges based on percentages incentivise to spend more – not less.
It’s always best to go for fixed-fee consultants or pay for specific services as needed. Better still, get involved. Bridge the gaps between trades. Be present, be helpful and don’t be too proud to clean, carry or fetch if it keeps things moving. If trades see you putting effort in for them, they’ll often go the extra mile for you, too.
SAVE by value engineering
Every time someone suggests a specification or finish, use the Yorkshire war cry "how much?" Always ask if there’s a cheaper alternative and by value engineering every decision, you’ll find ways to reduce cost without compromising quality. By looking after the pennies, you’ll be amazed at how far your budget stretches.
SAVE on floor area
Big isn’t always better and more space means more walls, more flooring, more roof, more heating and so on. It’s all expensive, so instead of trying to build the biggest house you can afford, focus on designing one that works really well, within your budget and without compromising on the quality.
Well-considered small house designs with clever layouts and open-plan spaces often feel better than bigger ones with wasted space.
SAVE on site overhead costs
If you need equipment – scaffolding towers, mixers, storage, even welfare facilities – don’t just hire them, buy them. Consider buying second-hand and then sell them on at completion. You’ll probably find you’ll recover much of the cost as a result.
When it comes to the build, source materials yourself and try a bit of upcycling where it makes sense. Trades don’t have time to look for bargains and tidying up often means throwing away useful materials.
Re-use where you can and keep a close eye on deliveries and invoices as little leaks here and there add up quickly.
Don’t forget, skips are expensive, and the material used to fill them even more so. So don’t be afraid of a bit of skip surfing, you might be surprised at what you find and you’ll cut the skip budget in the process.
A self-build is a big financial commitment, but it doesn’t have to be a financial disaster. My advice is to try and get the basics right and to focus your spending where it matters most for the duration of your self-build schedule.
Be thoughtful, be deliberate and keep asking yourself – is this really going to add value? Never be afraid to cut back where it won’t make a difference.
