How much does it cost to self build a house? Every year thousands of people build their own home. Contrary to popular belief, you don’t have to have stacks of cash to achieve your self-build project ambition, nor do you need to have expert knowledge of the self-build industry or prior experience. Dedicating time to budgeting for your project will help you keen a rein on self build costs.

Inexperienced self-builders should be aware that there is a danger of underestimating the commitment needed, both in time and self build costs, to construct a house. Total dedication to your project is a must as it may cost you financially, meaning some of the initial benefits disappear. The most successful self-builds are those that have been planned and budgeted for in detail and in advance. With this in mind, here are 10 tips for budgeting for your self-build project.

1. Draw-up a wish list

It might sound mad if you have a finite pot of money but don’t let the budget quash your creativity too soon. List out everything you would have in your new house if money was no object, and keep that list to hand.

2. Work out how far your budget could stretch

Utilise online cost calculators available through self-build magazines including Build It’s build cost calculator  and Homebuilding & Renovating’s build cost calculator. Every month, the latter publishes data from the Royal Institution of Chartered Surveyors (RICS), highlighting the differences in cost per square metre based on location, build route, number of storeys and specification of materials.

3. Add in other self build costs

Remember to add costs for any surveys required. These could include:

• Trees, environmental, soil samples
• Fees (planning consultant, planning application, architect, structural engineer, project manager),
• Structural warranty and site insurance
• Removal/storage costs
• Rent/caravan purchase
• External works (fences, paving, patios, landscaping)
• Contingency (around 10-15% of the overall build cost).

4. There’s flexibility in how you build

You don’t have to be a DIY expert or hand over your entire build to a main contractor – although it’s worth bearing in mind that labour takes around 30-35% of the budget. There are a number of ways to save on the cost to self build a house including buying materials yourself, take on the project management, hire subcontractors directly – saving money in the process. You could even come to an arrangement with your builder that you’ll take responsibility of certain stages of the project, like groundworks, timber frame, kitchens, bathrooms.

5. A complex design pushes up self build costs

A square or rectangular floor plan with straight walls is cheaper to build than angles and curves. The same applies in the roof design. Big open-plan spaces will require lots of supporting steel. Going for an airtight finish means budgeting for triple-glazed windows and doors.

6. Be organised from the start

Set-up a spreadsheet. Plug in the budget for as many known items as you can – kitchens, bathrooms, tiles, flooring etc. For line-by-line details, Mark Brinkley’s Housebuilder’s Bible is a great source. Be prepared to update your spreadsheet when the quotes come in, and then again when you pay for each item. Store all receipts and paperwork in a box for your VAT reclaim and agree cost variations in writing. Keeping track means you’ll know if you underspend on flooring, for example, you might be able to afford the granite worktop after all.

7. Work with a detailed self build cost estimate

Pay your architect or quantity surveyor to put one together. You can also use an estimating software like HBXL’s EstimatorXpress or Build It’s estimating service. A local builder’s merchant can price for materials against plans for a fee. They will issue a monthly statement if you set-up an account with them.

8. Use the cost estimate framework in the tender process.

It will be much easier to compare the numbers if the itemised costs in the quotes reflect the breakdown of your estimate.

9. A self-build cost budget is an evolving beast

Your self build budget is likely to begin loosely and strengthen as you pin-down what you’re going to build and how you’re going to build it. As you go through this process the decisions you make at the outset may change, and then may change again. If the quotes are coming in too high, go back to the decisions you made at the start about the design and how you’re going to build. For example, reducing the footprint, changing the shape, using different materials, choosing to take on the project management may mean you can afford items on your wish list.

10. Discuss the quote with your designer and builder

Ask them what can you change? What can you trim? Go back to your wish list, what can you live without? Where can you compromise? Perhaps you could wire for solar but not fit the panels yet. Or replace underfloor heating with radiators in rooms you don’t often use. Could you live in a slightly smaller house to recoup costs to pay for the garage? Whatever decisions you make, be sure all the final costs are agreed in writing.