Following a series of house price indexes showing record house prices (most recently from Halifax) and the potential for planning policy change in the future, GetAgent looked at the cost of building an average sized 5-bedroom home in different regions of England, and compared it to the cost of buying the average 5-bed in the same area.
The results are surprising. In almost every area you’ll be significantly better off if you choose to build your dream home from scratch, rather than buy one.
Key Findings
Highest savings in London, where in some areas building a home could save you over ยฃ7 million on the cost of buying. For example, if youโre lucky enough to be able to find a plot of land in Westminster, you could build an average sized 5-bed home for ยฃ7.165 million less than the average asking price. In Kensington & Chelsea, you could save ยฃ6.955 million building your own.
As a percentage of the average asking price the London borough offering the highest savings is Redbridge. Here it is 80.4% (ยฃ2.396 million) cheaper to build your own property than it is to buy.
Outside of London you find the best savings in the East and South East, with savings of almost ยฃ1.27 million in Guildford (71%), and over 67% in
Woking (ยฃ1.08 million).
Other areas with a saving over 60% include:
Oxford – 69%
Horsham – 67%
Tunbridge Wells – 65%
Sevenoaks – 64%
Cheltenham – 64%
Winchester – 61%
St Albans – 61%
Watford – 60%
Warwick – 60%
Worst savings in the North East, and North West, where in many cases itโs actually cheaper to buy a 5-bed home than to build one yourself. For example youโll save 59% (ยฃ164,535) in Blackpool by buying rather than building, and 41% in Redcar & Cleveland (ยฃ127,175)
CEO, and co-founder, Colby Short commented: โThe apparent low cost of building a home might make it seem like an enticing prospect for those who are struggling to get on the property ladder. But, itโs important to remember: building your own home is not an easy feat.
Before you rush out to buy land, get advice about how easy it will be to build your dream home on it. Youโll have to meet local planning regulations, and potentially consider extra costs like demolition, or hooking up your new home to utility networks.
However, if youโre up for the challenge, there are some great benefits. If you stick tightly to your budget, it can be significantly cheaper, plus you can claim back the VAT on any construction costs. Youโll also have control over the design, style, and standard of the home you ultimately move into.โ
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