Navigating the ‘New Normal’: will renovation costs continue to rise?
Are build costs ever going to go down?!
Home renovations over the last few years have been challenging to say the least, for homeowners, architectural designers and builders alike.
While we hoped those challenges would fade out, it looks like fluctuating material prices, labour shortages and high demand are here to stay - for a while at least.
So how do we adapt to this ‘new normal’?
Whether you’ve found yourself in a position where your dream renovation plans are suddenly - and wildly - over budget, or you’re anxious about even beginning the design and planning journey because you keep hearing about those rising construction costs, we’re here to help!
In this blog post, we'll delve deeper into the intricacies of this new normal and equip you with practical tips on navigating these complexities without breaking the bank.
Evolving Cost per Square Metre
The benchmark for construction costs, once around £1500 per square metre, has experienced a rise, now ranging between £2000 and £2500 per square metre.
And in some cases, costs extend even beyond this bracket, creating a considerable impact on project budgets.
Premium Services and Supply and Demand
Some builders, recognising the supply and demand issues when it comes to both materials and labour, are leveraging the situation to charge a premium for their services. The more you know yourself about what’s involved in your project, the easier it is to spot a contractor who is overcharging.
There are premium local builders out there who come with a higher price tag but offer a superior quality, which is something to consider. Are you willing to pay that premium if you’re ending up with a higher quality build?
With design and build, you’re paying for convenience - somebody who will come in and manage the entire process for you, right through to the finished build. While there are smaller builders out there who are adopting cost-saving measures, allowing clients to directly purchase materials and providing labour-only services. It all depends on what matters most to you: convenience or keeping costs down.
Optimising Extension Sizes: Finding the 'Sweet Spot'
Contrary to popular belief, going smaller with an extension doesn't necessarily translate to lower costs. You need to find the 'sweet spot'—typically a 3-3.5 metre extension across the back of a standard 3-bed property. Beyond this point, costs tend to rise exponentially. A qualified architect or architectural designer will be able to help you find the right balance for both space and budget.
Top Five Tips for Keeping Costs Down During Home Renovations
Direct Material Purchases: Consider buying materials directly to save on markup costs.
Labour-Only Services: Opt for builders who provide labour-only services to minimise expenses.
Local Professional Network: Keep your ear to the ground and build up a network of contacts for reputable tradespeople. And use a local architect or designer! They’ll have their own network of vetted and cost-effective professionals they can link you up with.
Explore Permitted Development: Understand and leverage permitted development rights to simplify the planning process and save costs. Again, your architect will be able to guide you through this process.
Prioritise Essential Features: Create a list of non-negotiables and prioritise those essential design elements to allocate resources efficiently.
While this new normal poses challenges, there are steps we can take to keep costs down as much as possible. By staying informed, making informed decisions, and employing cost-saving measures, homeowners can achieve their dream home without breaking the bank.
No matter what stage you’re at in your project, our team is here to help. If you’re based in the East Midlands and you’d like to book in with our Derbyshire team for a free, no obligation design consultation, hit the button below - and stay tuned for some more practical tips!
Our fixed fee packages include all the necessary plans and guidance for a planning application. Plus, we handle the submission and all communications for you. For an idea of prices for designing and planning a home extension, please use our online calculator.
If you’re not quite ready to get started, or you’re based elsewhere in the UK, please feel free to check out the rest of our Advice Centre - and connect with us on Instagram and Facebook for tips and inspiration.