Extension cost insanity!

[FManc]

We’re looking at doing an 18m2 (6x3m) single storey rear extension based in the Stockport, just outside Manchester. We want to go down the Design & Build route just for simplicity and the fact that materials/prices are changing that often a builder will be more aware of what’s going on. We’ve just had one company refuse to come out to have an initial visit/meeting as basically we can’t afford afford their prices; she was extremely rude and condescending which didn’t help either. She said for the most basic build you’d be looking at £75k and that’s WITHOUT a kitchen so we’re touching the £4k+ per sq!!! If this is really where we’re at now then with prices then jeeeeeez! We had in our mind around the £50-£60k mark but ideally that included a kitchen. Either we’re really out of touch with what we were expecting or we need to save a lot more! Anyone got any recent experience of pricing etc just to get an idea?

Op, take a look at the current economic outlook. Materials remain massively Inflated & Construction as a whole is still riding the cost tails of the post COVID boom.

If you can hold out, do. Ask anyone whose retirement age who has been involved in this industry for a long time - it's cyclical and very 'boom & bust'

I wanted a small brick wall in the garden. I watched Youtube videos and read a couple of chapters on bricklaying then I did it myself. Super cheap. These prices are gobsmacking.

The prices are awful , how are builders still so busy ???

A lot of the builders are still working their way through backlogs quotes for months ago. If not last year. Some people will have had to drop out because of increased prices, but others will have been waiting and waiting desperate to get it done.

Thanks everyone so far for all the responses. It’s definitely been an eyeopener! For those saying to wait it out, just bare in mind we’re at the very start of this process so aren’t committed to anything. We’re just trying to get a feel for prices at the moment. Obviously if quotes come back at ridiculous prices we’d rather wait it out a while even though we are really eager to get this extension done. I do wonder how long the high prices can be sustained for before people start pulling out, especially with a harsh winter ahead! But, I also wonder how long it’d take for builders to start looking dropping their prices again. Just look at petrol prices etc - can’t ever imagine them going back down to pre-covid/Brexit/Ukraine war levels now, we’ll probably just settle for a middle ground figure now!

Would it be cheaper to do a timber extension DIY sos style, ?

I don't think it's quite as black & white as people are making out. Yes prices are astronomical but even if they come down a little (can't see it myself - there are always people needing work) interest rates are rising so unless you're funding it completely from savings, it's going to cost you more on a mortgage for the same amount of capital.

Prices will not come down. And if they do, it will because the economy is in free fall.

I don’t think people understand what the world is entering now. Y’all talking like next summer thing will be good, like pre-2020.

They won’t be. Might want to factor that in now, because the global economy is about to hit something far worse than 2008 or COVID.

We’re very nearby OP, getting a small single story extn starting in 2 weeks, it’s costing about £50k for the build, and £75k in total once factored in kitchen, flooring, appliances, electric, drawings, building regs, planning permission, contingency etc. We are going ahead as prices likely won’t come down. The steels have been one of the costlier aspects. If anything, the inflation may drive some costs higher if we hold off for 6 months.

God forbid tradesmen get to go on holiday.

Not sure about the reasoning that if recession hits and lots of builders go bust, that prices will come down significantly? Those people with approved plans and money sitting will be vying with each other to obtain a builder from a much reduced pool. The reduced supply, and inflation running at 10-20% doesn’t point to greatly reduced prices.
Its a gamble, at the end of the day. You might save money by waiting, but i would only take the risk if I was prepared to lose, and subsequently pay an even higher price.

We are about to start a renovation, we are not waiting any longer, as we anticipate costs going up more, and our location is perfect so moving isn’t an appealing option.

@LimboLass good luck with that approach! Our whole firm is booked til next autumn and we have cancellation lists for each trade.

Wouldn’t it be cheaper to just move house?

We are in the middle of building something similar to what you describe. Single storey rear extension to house a kitchen diner, and converting existing galley kitchen to utility and loo. SE England. 19 square metres actual extension.

Our quotes for the build alone to a plaster finish ranged from £60k to £103k including vat, plumbing and electrics. The cost of the kitchen, utility and loo/sink plus flooring, decorating, etc, is all on top.

We went with the middle quote of 5 and I reckon it’ll cost us around £100k. That’s keeping it as structurally simple as possible, DIY Kitchens solid wood kitchen, quartz worktops and LVT flooring. The only upmarket thing is the worktops.

What I would say is that availability of builders surprised me. 3 of the 5 who quoted for us in May could start this year and we actually started two weeks after accepting a quote in July as our builder had had another client postpone. We’ve also had no issues getting supplies and no delays so far.

Originally we started looking at this in 2018 and were told to expect to pay £2k per square metre plus VAT. We’re now paying £3.1k plus VAT….

Not sure about the reasoning that if recession hits and lots of builders go bust, that prices will come down significantly? Those people with approved plans and money sitting will be vying with each other to obtain a builder from a much reduced pool

Why? What are all the builders suddently going to work as?

@Wearefoooked22 that’s a joke surely? Have you tried to buy a house in the past two years?

I spent nearly 18 months getting architect plans, planning permission, and loads of quotes for a two storey side extension (only the shell, as my partner is really handy and could finish the rest at a lower cost to us)

Settled on the middle priced quote, waited 6 months for the builder to be available, and then the week he was due to start, he told me the price had risen so astronomically, that he couldn't see how we could afford to do it within our budget. Cost of materials, and new regs for insulation etc had affected the price so much that the cost to move to another house with an extra bathroom and bedroom is the same now. After much effort and heartbreak we are just improving the house as is, and selling it. Hoping the fact it has still valid plans will help...

@Browntoastwithbutter yes I bought in February,what I mean is with the prices of extensions will you get the money back if you sell?

I’m right in middle of build. I’m having new flat roofs and a renovation of existing room inc. roof lights, and some patio work. £65k. Not even a new room, let alone kitchen or bathroom.

I have been waiting since June 21 for this. The works needed came up on my survey when I bought the place. I was quoted £30k at time. In time it took me to get a builder that would committ to do work, which was 12 months later, prices had doubled. I struggled a lot with this as I am retired and my savings are all I will ever have. I had no options as roof was needed before it leaked.

but that is just one issue. I was told 8-10 week, I’m 3 months in and only half way there. It is not all fault of the building company, nor is it all material issues. Labour is the biggest issue:my builder had his original contracted roofer do a runner and is still trying to get material costs back form the roofer. He’d used the guy for 5 years. He’s struggling with other contractors not turning up when they say they will. This has led to a couple of major accidents as roofs came off day before roofer was due, roofer never showed. Took 5 weeks to find new one- floods in kitchen meaning that ceiling had to be removed, and whole room needs to be plastered and decorated. It’s my builders that has to carry that cost. Whole project planning is a shot show tbh. Contractors are just not showing up because in part they can pick up late cancellation jobs form desperate people who’ve been let down by their contractors and charge a premium. I swear this is a big circular issue- they’re all letting down one customer to step in to “save” another customer at short notice and higher rates. 🤷🏼‍♀️

my strong advice to anyone, if you don’t NEED work doing, don’t do it. Wait for a year or so until they’ve caught up on backlog from covid, we’ve hopefully sorted out mess around lack of skills due to brexit, and raw material from China supply chains has been restored . Just don’t do it unless you have to

Moved recently. Supposed to be renovating. Total cost nightmare. Should have bought a bigger house in the first place.

Feel like a total prat.

Agree with others that costs unlikely to come down, but I’d have hoped that by 2-3 years time , the lead-times and cancellation issues are more in control and you can have a project plan that you can at least use a rough basis as opposed to a pipe dream or wishful thinking.

prices won’t come down until we get back to builders competing for work. Where they want to give quotes cos they need the work. Where the labour needs to show up on jobs they’ve committed to otherwise they can’t earn a living. Interest rates will help slow the pace of new demand next year, that but it will take probably 2 years before it kicks in given backlog of work and shortage of labour. Can’t see issues changing in next 24 months.

If they go bust they won't be working?

Wherever there is a gap in the labour market, presumably. If a building firm “goes bust” ie goes into administration, it generally means they default on creditors and suppliers, and it isn’t straightforward to get these up and running again particularly when you don’t have credit in your account.
The builders working for the firms who go bust may of course go to work for other building firms, but that won’t lead to a decrease in prices. It will still leave us with a smaller number of firms who can dictate the market rates.

Lots of builders will go under🤔🙄🤷🏼‍♀️

nope

there is a massive backlog of work and the skilled trades are in short supply- that is why they can charge these prices. Market forces at play- demand exceeding supply.

I’m talking to my trades here on site. The issue is that there are no low skilled but experienced workers anymore other than trainees or people with few skills but no experience.

those low skilled but experienced workers came in from europe in significant numbers ..as well as a lot of very skilled workforce from same countries. Brexit has put a stop to that, just like fruit pickers. Without that workforce anyone remotely skilled is setting up in business on their own as sub contract, as they can make way more money than if they are employed by company direct.

The actual skilled, experienced workforce now has to do a heck of a lot of supervision of the low skilled yet inexperienced trades (think apprentices, newbies etc), so jobs are taking longer, more resources etc. add to that I’m told that work is having to be redone- these builders that are skilled but lack experience and are setting out on their own are taking on stuff they don’t have experience for, then it gets into problems, then the job has to be redone by someone else or with oversight of someone else.

so we have double whammy…lack of the low skill but experienced trades to keep labour costs down, and then a drain on the experienced resource that have high costs because they’re doing stuff way below their pay grade so to speak or clearing up the mess after mistakes. And then a workforce that is moving more and more to working for themselves as contract.

builders aren’t going to go bust becuase there’s still the backlog of works from covid raw material supply chain issue,, brexit labour issues and high demand due to people having money during covid to do works.

even when interest rates kick in hard and new work dries up, there’s still months of backlog for them to live off…and due to reduction in labour force the “best” we’ll ever get back to (unless government brings in Eu free movement again) is that they have some spare capacity and competition for work comes back into play forcing prices down a bit.