For many, owning their dream home feels like a distant dream. As the news reports house prices outstripping salary growth, and fluctuating availability of affordable mortgage products.
However, perhaps, building a dream home could be the answer. GetAgent looked at the cost of building an average sized 5-bedroom home in different regions of the UK, and compared it to the cost of buying the average 5-bed in the same area. In almost every area of the UK, they found that you’ll be financially better off if you choose to build a dream home from scratch, rather than buy one, (that’s if you can find the right land of course!)
The highest savings can be found in London – a city notorious for the cost of its property – in some areas building a home could save you over £7 million on the cost of buying. For example, if you’re lucky enough to be able to find a plot of land in Westminster, you could build an average sized 5-bed home for £7.165 million less than the average asking price. In Kensington & Chelsea, you could save £6.955 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% (£2.396 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 £1.27 million in Guildford (71%), and over 67% in Woking (£1.08 million).
You’re not likely to save as much by building your dream home in the North East or North West (where availability of land is slightly greater too) – you may even find it’s cheaper to buy. In Blackpool, you’ll actually save an average of £164,535 by buying a 5-bed rather than building.
CEO, and co-founder of GetAgent, Colby Short, commented on the findings: ‘The 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, it’s 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. You’ll have to meet local planning regulations, and potentially consider extra costs like demolition, or hooking up your new home to utility networks.
However, if you’re 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. You’ll also have control over the design, style, and standard of the home you ultimately move into.’
For a full breakdown of GetAgent’s data, explore their interactive map.