Have you ever thought about building your own dream house? It could save you a fortune, but read our ultimate guide to the hidden costs and risks of doing it yourself

Many of us dream of building a house so we can make it the way we want it, but few take the plunge. Could this be the year you go for it?

Follow the advice of our experts and you can save up to 30 percent on the cost of buying a house by rolling up your sleeves and creating a dream home yourself. Here’s what you need to know to get started.

Find a plot

The first step, of course, is finding a place to build your house. Build It magazine has a land search service, PlotBrowser, which lists thousands of self-build plots, available from £50,000 to over £1 million.

You can search by zip code or county to get an idea of ​​the prices you might expect to pay for plots of different sizes in a chosen area. They already have the required building permit.

Property auction houses such as Allsop, Clive Emson and Savills also sell lots. You can consult real estate agents in the areas that interest you. Even if nothing is available, once you register an interest, you will be on their books if something comes up.

Ben Adam-Smith built a four-bedroom family home in rural Hertfordshire six years ago. The media consultant is keen to share his experiences and now offers tips for others through his advice website House Planning Help.

He says: ‘Self-build offers a great retirement project for those looking to downsize as they get older, with the extra money freed up being ideal to pay for the plot – and then the building work. If you no longer work, you may also have more time to look at lots and research what kind of home you want and how it will be built.’

Homebuilding & Renovating magazine recommends that you visit the country you’re considering – and be wary of being sold just on the breathtaking views. The cost of excavating and installing a 2m thick concrete foundation could total £20,000 – but if you have trees nearby this could add £10,000 as you’ll need to excavate 3m.

Slopes also add to costs. Each degree of slope on a plot can add £1,000. Also consider the cost of utilities such as gas, electricity and plumbing connections if you are looking at a remote location.

Potential housebuilders in England should contact their local council. Under a right to build law, local authorities must provide opportunities for self-build sites that reflect the number of people interested.

Don’t forget to factor in stamp fees when purchasing land. On land valued at £250,001 to £925,000, budget for 5 per cent.

Embrace the challenge

Motivation is key. It’s one thing to be inspired while sitting on the couch, drinking a glass of wine and watching Grand Designs on the television, but the reality may involve standing outside on a wet, miserable winter’s day, staring at a muddy hole in which you you have sunk your life. savings.

Part of the reason why a do-it-yourself construction can save you money is your willingness to put up with such inconveniences and do some of the work. If you plan to manage the project yourself, you may also have to forego home luxuries for at least a year. House Planning Help says many managers choose to live in a caravan on site so they can oversee the job once they sell their old home.

Hire a professional architect to draw up the plans. These must then be approved by the council, which can take eighteen months. Architects’ fees can cost five percent of the construction cost, so budget at least £10,000.

Self-build mortgages tend to be less competitive than traditional home loans because they are considered riskier. Examples include a 5.99 per cent discounted self-build variable loan over two years from Saffron Building Society for a loan-to-value of 75 per cent. By comparison, a mortgage with a traditional two-year term from a provider like Nationwide is 4.71 percent.

Stick to a budget

Build It magazine has an online ‘self-build cost calculator’ that can help you roughly break down costs.

Homebuilding & Renovating says: ‘The cost of self-building should adhere to the ‘third, third, third’ principle, consisting of the plot cost, the construction cost and the potential profit – or the savings of building your house.’

Buildings cost an average of £312,000 but will vary considerably, especially depending on the construction method, according to Homebuilding & Renovating. A concrete blockwork system for external walls and partitions typically costs £50,000. If you opt for a timber frame construction it may cost £5,000 more but offers more flexibility. But opting for an oak frame instead of traditional pine – which can increase the aesthetic appeal – could add another £20,000 to the build cost.

Bricks for a house build can cost a further £20,000, based on £650 per 1,000 and laying costs of £1,000 per 1,000 bricks. Roofing calculated at £40 per square meter in materials and installation can total £50,000. Windows and door frames may require a budget of £40,000, while internal walls and plasterwork will cost £25,000. Set aside at least another £25,000 for service connection costs for mains water, sewerage, electricity and gas – or less for an existing home.

Unless you are fully qualified, it is necessary to employ professionals for plumbing, electricity and gas connections – otherwise the self-build will not pass the regulators’ checks. You shouldn’t expect change of £40,000 for this help.

Ben Adam-Smith says: ‘It’s all too easy to focus on the fun stuff, like designing a luxury kitchen, when this should go much further.

‘Initially, you’re better off learning something about project management – ​​maybe taking courses and reading up on it in books like The Housebuilder’s Bible by Mark Brinkley.’

One of the major advantages of building your own home is that you can reclaim VAT on most building materials. This can be done using something called a VAT 431NB form – search the gov.uk website for more information.

Manage the work

A project manager can cost around ten percent of your build budget, so expect to pay £30,000 for a £312,000 build. Build It says this money can be well spent if you complete the building on time and within your budget.

Before you begin, written contracts are required rather than verbal agreements, including a breakdown of the price of materials, labor, and time frames.

Stephen Thompson, of the Royal Institution of Chartered Surveyors, says: ‘For safety and clarity, it is best to have a formal contract where everyone knows where they stand. It should also cover unexpected circumstances – ground conditions, weather conditions and insolvency, and what happens in these situations.”

‘Be fully committed’

Ben Adam-Smith, 48, and his wife Kay, 47, were able to have their home completed in just 11 months – after looking at 40 different plots over the past six years while learning all about self-building.

Ben says: ‘You have to be completely committed – with a clear vision of what you want, so that once you find the perfect plot, you’re ready to go.’ The couple, who have two children – James, ten, and Emily, seven – paid £703,000 for the plot in Hertfordshire and a further £606,000 for the work yet to be completed, including payment for a project manager to oversee everything.

The money came from the sale of their previous home and a self-build mortgage. Six years after completion, the property is valued at £1.75 million – £441,000 more than it cost.