Cost

Costs for building a new home vary substantially, mainly due to differences in size, specification, and local labour rates. Based on guidance from industry sources, the cost of a typical new-build house in England or Wales starts at around £1,500 per square metre for a simpler structure.

An average home with mid-range finishes often ranges £2,000–£2,500 per square metre. High-end, architect-designed properties may reach £3,000 per square metre or beyond. 

London builds, however, frequently exceed £5,500 per m² due to higher land, labour, and material costs. 

These figures include most costs linked to the actual construction but do not necessarily include the architect’s fees or certain engineering work.

Architectural and design fees can vary dramatically, but a minimum of £20,000–£30,000 for basic services on a modest project is common. Complex or larger designs can easily see this fee rise much higher.

In other words, if you need a 200-square-metre family home at an average specification of around £2,000 per square metre, that places your initial build costs at around £400,000.

You would then add architectural fees plus the cost of surveys, applications, site preparations, and any extras such as landscaping.

In London, where land values are among the highest in the world, the overall cost of a self-build can be significantly higher than in other UK regions, making careful budgeting essential.

What Drives the Price Up?

Several factors significantly influence the final price tag of a new home.

Every project is unique, and certain features make one construction more complex and expensive than another. The more complicated the work, the longer it generally takes, which naturally pushes up labour costs.

Soil conditions and the specifics of your plot can be especially critical. If the land is sloped or has poor ground conditions requiring more extensive foundations—such as piling, extra drainage, or even blasting through bedrock—this will increase the total cost.

This is particularly common in London’s older neighbourhoods, where some plots may require extensive groundworks to prepare them for modern construction.

Your design also matters. Any specialised or intricate structural features—multiple storeys, integrated basements, double-height spaces, large spans—demand additional engineering and labour.

In London, basements are increasingly popular as a way to maximise space, but excavation costs can be substantial, sometimes adding £300,000 or more to a project.

Finishes and fittings are another key variable. Kitchens and bathrooms can be particularly expensive, and a house with multiple wet rooms will cost more to build than one with fewer.

Underfloor heating, smart home systems, or premium floor materials can also increase your budget. In London, high-spec interiors are often expected, particularly in prime locations, meaning that premium materials can drive costs up further.

Conversely, choosing more modest fixtures and materials, or having fewer complex areas, can help keep overall costs lower.

Don't Forget These Costs

In addition to build costs, keep in mind that you will face other expenses. The following list is a rough overview of items that frequently appear in a new-build budget and that should be considered from the outset: 

Surveys

You might spend several thousand pounds on topographical or boundary surveys, for example, often starting around £500–£1,000, depending on the size and complexity of the plot. 

Structural engineer

A structural engineer’s calculations may cost £2,000–£5,000, or more, if your design requires extensive analysis. 

Application fees

You will generally pay your local authority’s planning application fees, which can run from around £200 to more than £1,000, depending on the scale and type of development (Planning Portal). 

Building Control fees vary by region and are based on factors such as floor area. Some lenders also require professional valuations or stage inspections for drawdowns on self-build mortgages, adding further expenses.

Project management

When it comes to project management, some people act as their own site manager, although it is not recommended for those without a construction background. Those who contract a main builder or package house supplier often pay a premium of 10–15% on top of subcontractors’ labour and materials, but this can be worthwhile for peace of mind and efficiency.

You can compare quotes from multiple professionals by listing your job on well-known trade directories. Doing so provides a better sense of the market rate for your region and helps you discover local builders with the right credentials for your job.

Building a house in London

Building a house in the London is an exciting but costly undertaking with prices rising steadily in recent years: Labour and material shortages have pushed prices up by 15–20% since 2020.

On national average, a new build costs £1,700–£4,000 per square metre, though high-end projects in areas like London can exceed £5,500 per m² due to higher labour and material costs, making it the most expensive place in the UK to build. 

The choice of construction style naturally plays a role—while brick remains the most common material, timber-frame houses are growing in popularity, particularly in Scotland.

In rural areas, homes often incorporate local stone, whereas London developments frequently feature sleek steel and glass designs to suit modern city living. Yet even among London’s contemporary projects with their glass or steel, the typical home still relies on brick-and-mortar at its core.

Unique challenges in London

London presents some unique challenges beyond cost. Limited plot sizes mean self-builders must often get creative with compact, vertical designs. Additionally, access issues in densely populated neighbourhoods make construction logistics more complex and costly.

Strict planning rules, especially in conservation areas, can complicate and slow approvals. There is also high demand for skilled tradespeople, which can lead to longer wait times and higher wages.

On the plus side, you’ll find London offers a large pool of experienced contractors.

While navigating regulations and rising costs in London can be challenging, building in London could also offer significant financial advantages, as property values in the capital consistently appreciate, possibly making it a strong long-term investment. 

The city also provides access to a vast pool of skilled tradespeople, ensuring high-quality construction and modern design options. With world-class infrastructure and urban amenities, a London-built home guarantees excellent connectivity and access to top-tier services.

While costs and regulations can be challenging, the prestige, convenience, and investment potential make building in London a rewarding choice.

Bespoke Design or Prefabricated?

One of the earliest choices you face when building a new home is the style and design approach. People often distinguish between hiring an architect for a bespoke design and choosing a “ready-made” house through a specialist supplier (sometimes called a package house). Each choice has pros and cons.

A bespoke or architect-designed home can be precisely adapted to your family’s needs. This allows you to optimise everything from the layout to the way the property sits on your plot, often resulting in a distinctive and unique design.

On the other hand, a house from a package supplier can be faster to build and may sometimes cost less per square metre, though the savings are not always as large as some might assume.

In London, many self-builders opt for modular or prefabricated elements to speed up construction and reduce costs, as traditional building methods can take longer and be more expensive in the capital’s high-demand market.

Most house suppliers offer a range of designs, from contemporary to more traditional styles, which can then be customised to a degree.

If you choose the bespoke route, you will need to engage an architect and, later, the right main contractor or group of contractors. In London, where plot sizes are often tight, working with an architect experienced in maximising space efficiency can be a game-changer.

Many homeowners use reputable online services such as TrustMark or Federation of Master Builders to find accredited builders. The Royal Institute of British Architects (RIBA) also provides directories and advice on finding qualified architects.

If you decide to go with a package home, most suppliers offer their own project management, and they will typically have an established list of preferred contractors to carry out or assist with the build.

How Long Does It Take to Build a House in London?

Based on industry standards and London-specific conditions, you should expect the process of building a typical home in London to take roughly 1 to 1½ years in total, from planning approval through construction. 

A very smooth project might come in just under a year, while one encountering challenges (slower approvals, site issues, or changes mid-build) could approach 18–24 months. Below is an overview of the process and timeline:

Planning approval: About 2-4 months (varies by project and borough).

Site preparation: A few weeks to 1-2 months.

Construction phase: 6-12 months

By accounting for each phase, you can better plan your project.

To help limit unnecessary delays, here are a couple of tips:

• Start planning as early as possible. 
• Make sure to submit all necessary documents, drawings and a thorough application to avoid validation delays
• Make sure to contact builders early. Traders are in high demand in London, and you may have to wait a while for your preferred contractors to become available. 
• DIY can be a great way to save money but it can also get in the way of the professionals’ work. If you’d like to do some of the work yourself, discuss and plan for this with your contractor. And be aware it might add time to the project

Planning Permission and Building Regulations

Any new house in the UK must comply with planning permission and building regulations. 

In short, planning permission covers the design’s impact on the surroundings, while building regulations ensure the house is structurally safe and meets standards for things like fire safety and insulation​. 

For self-build homes, planning permission can either be applied before or after land purchase, or it can come with the plot: “Planning permission is associated with the land, rather than the applicant and you can make a purchase subject to planning permission”, per the Planning Portal.

Documentation

Accurate documentation is vital for obtaining precise quotes and for guiding the actual build. Typically, your planning submission will include detailed layout drawings, elevations, and section diagrams. 

However, for pricing and construction, you often need to go further with a set of working drawings or a specification manual. These documents can cover structural details, insulation requirements, ventilation systems, finishing schedules, and more.

A thorough specification might contain room-by-room details of material choices, lighting, plumbing, heating, and window and door schedules. The more comprehensively you plan the build, the fewer surprises you will encounter during construction, and the easier it becomes to compare multiple quotes. 

Once construction is complete, all compliance certificates—such as electrical installation certificates, gas safety records if relevant, and final sign-off from building control—should be kept safe. These will be necessary if you decide to sell or re-mortgage in the future and also for warranty or insurance purposes.

Save Money

People often wonder how they might reduce costs and still achieve a satisfying result. There are many strategies to explore, from chasing supplier discounts on items such as floors, tiles, kitchens, or staircases, to limiting the number of bespoke details that require manual customisation.

If you have some relevant skills, you may be able to take on minor tasks yourself, such as painting or landscaping. Doing so can save money, but only if you have the time and know-how, as mistakes can end up being costly to fix. 

Another approach is to choose simpler forms of heating and ventilation, or to opt for standard-quality windows rather than top-of-the-range models. Reducing the total number of bathrooms is another method, since each wet room represents a considerable expense.

10 Tips

There are many ways to increase your chances of a smooth build. Here are some of the most important considerations, without resorting to bullet points. 

1. Invest time in a thorough design and planning phase. Rushing into construction without properly finalising the design often leads to expensive revisions later. 
2. Establish a realistic budget and be clear about the level of specification you can afford. Talking to your bank early about self-build mortgages—often known as stage payment mortgages—makes sense, as you need to be certain of funds before you begin. 
3. Communicate with your architect or building designer to ensure that your drawings meet local planning rules and are likely to get approval. If you are unsure, you can discuss proposals informally with the local planning department or consider a pre-application consultation to reduce the risk of refusal. 
4. Gather and compare several quotes from reputable builders, but do not rely solely on the lowest price. Check references, credit ratings, and examples of previous work. 
5. Think carefully before taking on tasks yourself, since high-quality labour for skilled trades can be more cost-effective than remedying errors made by enthusiastic amateurs. 
6. Ensure your contract with the main builder specifies responsibilities for all materials, labour, and finishing tasks, so there are no hidden extras. 
7. Keep in regular contact with the site, either personally or via a designated project manager, to monitor progress and address any issues early. 
8. Plan the start date with regard to weather-sensitive tasks like groundworks and pouring concrete foundations, as harsh winter conditions or prolonged wet weather can disrupt or slow construction. 
9. Carry out a thorough final inspection once the house is nearly complete, accompanied by either a professional surveyor or an independent construction consultant, to confirm that everything is built to specification and that any snags are resolved. 
10. Retain all final documentation, including building control sign-off, certificates for electric and gas work, warranties, and receipts, to safeguard your future interests.

Summary

Building a new home is one of the largest investments many people will make. Whether a new build ultimately costs more or less than buying a second-hand property depends on factors such as local land prices, overall construction costs, and the expense of bringing an older property up to modern standards.

If you have specific design goals or prefer a bespoke approach, new construction can be a highly rewarding way to create your dream home.

Once you have secured your plot, you typically begin by collaborating with an architect or a suitable design professional. Preliminary sketches lead to final plans, which must then receive planning permission. Only after that can you move on to detailed design, costing, and ultimately construction.

If you are opting for a package house, a single supplier can guide you through these steps, but you still need to handle certain regulatory aspects.

Typically, an “agent” (often the architect or the package supplier) will be named as responsible for dealing with the local authority. When the house is complete, final checks from building control confirm that the property meets modern energy and safety standards.

Finally, keep in mind that even if you do everything right, building a house demands patience, flexibility, and good communication between all parties. If you invest the time in careful planning, assemble the right team, and stay attentive to the process, you will greatly improve your chances of ending up with a London home that meets both your aesthetic and financial expectations.