For owners planning a new house in London or the UK
How Much Does a House Cost to Build?
Sviatoslav JerdetchiiCEO & Founder of Craftex. Updated , 4 min read
The short answer
Building a house costs the build itself, priced per square metre, plus land, professional fees and charges such as planning. PropertyData puts UK build costs from around £1,750 per m² to over £3,000, before fees.
- Specification, the site and the size of the house move the build cost more than anything else.
- A new home can be zero-rated for VAT, but architects' and surveyors' fees are standard-rated.
- A self-builder can claim CIL relief, but only if the exemption is obtained before work starts.
- Keep a contingency of 5% to 10% of the build cost for what the ground and the design reveal.
How much it costs to build a house depends on three things: the build itself, the land, and the fees and charges around them. The build is usually priced per square metre of floor area, and it moves most with the specification, the site and the size.
PropertyData puts UK build costs from around £1,750 per m² to over £3,000, before professional fees. This guide explains what sits inside and outside that figure, how London differs, how long it takes and where budgets overrun.
Planning a prime London house? Our high-end residential architects page shows how our design team draws and our builders price as they draw. Book a free design consultation and we will look at the site or the plans with you.
Cost per m² by spec: published rates and the calculator
Build cost is quoted per square metre of gross internal floor area. PropertyData says it starts at around £1,750 per m² in the UK and can run to £3,000 per m² and more. Its figure excludes professional fees, which it suggests adding at about 15%.
Where your house lands in that range depends on the specification more than anything else.
- Standard. Simple shape, standard windows, off-the-shelf kitchen and bathrooms.
- Good. Better glazing, more insulation, some bespoke joinery and a better kitchen.
- High-end. Large glazing, stone, bespoke joinery throughout, underfloor heating, smart controls and a basement.
A high-end London house usually sits above the top of the published range, because of the specification and the site. Our build cost calculator gives a first indication for your own project.
Land, fees and VAT
The build cost is only part of the budget. These sit outside it, and they are where first budgets most often fall short.
| Cost | What it covers | Notes |
|---|---|---|
| Land | The plot or the house you replace | Often the largest single cost in London |
| Professional fees | Design, engineers, surveys, project management | PropertyData suggests about 15% on top |
| Planning fee | The council's application fee | £610 per new home in England since 1 April 2026 |
| Building control | Plan checking and site inspections | Council or a registered approver |
| VAT | On fees and anything not zero-rated | Architects' and surveyors' services are standard-rated |
| CIL and section 106 | Council charges on new homes | Self-build relief must be obtained before work starts |
| Utilities | Water, power, gas and drainage connections | Quoted by each provider |
VAT works in your favour on the build itself. HMRC zero-rates the construction of a new qualifying dwelling, so a VAT-registered builder may charge 0% on it. A self-builder buying materials directly can reclaim VAT through the DIY housebuilders scheme, but only one claim is allowed.
The Community Infrastructure Levy can be a large charge in London. A self-builder can claim an exemption, but GOV.UK guidance says it must be applied for and obtained before development starts.
London vs the rest of the UK
Building in London usually costs more than the national figures suggest. The reasons are mostly about the site, not the bricks.
- Access and logistics. Narrow streets, no space for storage and timed deliveries slow every trade.
- Neighbours. Party wall agreements and protection for adjoining houses add cost and time.
- Basements. Digging below a London house adds structural work, waterproofing and propping.
- Planning. Conservation areas and design policies call for better materials and more drawings.
- Labour. Labour rates are generally higher in London.
Land is the biggest difference. In prime London the plot is often the largest single cost, so the build is a smaller share of the total than elsewhere. Our guide to luxury home design costs covers the high-end end of the market.
Timeline for building a house
Design and planning often take as long as the build. These are the stages, in order.
- Site and feasibility. Surveys, constraints and a first budget.
- Design. Concept options, then a design ready for planning.
- Planning. The council has 8 weeks to decide most householder and minor applications once valid.
- Building regulations and pricing. Technical drawings, structural design and a fixed build price.
- Build. Groundworks, frame, roof, services, finishes.
- Handover. Snagging, certificates and the completion sign-off.
Planning permission and Building Regulations approval are separate. Our guide to planning and building regulations drawings explains both sets. If you are extending rather than building new, read our guide to the architect for a house extension.
Where budgets overrun
Many overruns on a new house trace back to decisions made late or ground nobody looked at. These are the usual five.
The protection is the same each time. Survey the site before you design, fix the design before you price, and price before you build. We advise a contingency of 5% to 10% of the build cost, depending on complexity. Any change is agreed in writing and priced before the work is done.
Use our build cost calculator
Our build cost calculator gives an indication for a new house or a major project from its size and specification. It is a starting point; a fixed figure comes after we have seen the site and the drawings.
Many house projects stall between the design and the builder's price. When one firm designs and another prices, the scheme can come back over budget after planning. Our design team and our builders work in one company, so each option is priced as it is drawn.
I and my husband are very satisfied with Craftex's service and customer support. We bought a house in Hampstead and wanted to redesign and renovate it. On our initial free consultation with Sviat, we found out that we actually can do loft conversion and rear extension and add value to the property straight away. We worked with the Craftex design team to bring our vision to life and deliver planning approvals. At that time guys started stripping out to save time on the construction programme as we wanted to move in ASAP. We worked with very experienced project director Konstantin who was responsible for all aspects of project delivery from design to construction with a very good eye on details and customer care. We saved a lot of money by having professional advice from the start. Project management and quality at Craftex are at the highest level. Many thanks to Craftex Team.
How we price a new house
We do not publish a price for a new house, because every site and brief differs. We agree the design fee per stage, in writing, then fix the build figure at detailed design. About 60% of the labour on our sites is our own.
Got a site or a set of plans? Book a free design consultation and we will reply the same working day.
Where house-building budgets overrun
- Ground conditions found only when digging starts
- Design changes after the build price is fixed
- Utilities connections quoted late
- Provisional sums in the quote that were really guesses
- Finishes chosen after work has started
