Building works too expensive

[Meandmrsjonesgotathinggoingon]

We got quotes for extending out into the garden and it’s way over what we were thinking. DH wants to cancel that plan and just redo current kitchen but we bought the house (6 months ago) on the basis of doing an extension. I wouldn’t be happy just redoing current kitchen and it wouldn’t provide what we want and need.
We could afford extension if we throw everything at it. Just have no savings after.
What should we do? Do you agree that if we wait and save up money then the prices will go up by more than we can save?

Hi OP, we did an extension and renovation in the first lockdown, JUST as things were going mental (on a lot of fronts!)

In your shoes I would allow 20-25% contingency to the budget. Everything we did took longer and cost more than we/our builders had anticipated. We have a beautiful home :) but had to get a loan to cover the shortfall which we'll be paying off for 4 more years...

In our last house we got the kitchen units re-sprayed and new countertops (Ikea Barkaboda is beautiful) which gave the kitchen a significant facelift for under £1000... Maybe that's your interim solution?

I have never done any building work before so I am SO ridiculously excited. I'm self-employed so if I don't work, I don't get paid, and it's taking every inch of my self-discipline to focus and not just constantly browse online for new kitchens and renovation advice 😅

The extension/annexe in total is adding about 54 square metres of space. It was originally 51.4sqm but then DM added a tiny bit extra and I can't remember the exact final figure, but it's roughly 54sqm.

The main extension is 36.9sqm and the rest is enlarging the annexe. For the main house extension, we're knocking through one of our back walls and having a full width extension across the back.

The price (which is a whisker under £96k) covers the full build for both main house and extension to a plastered finish. Fittings for the radiators, incl pipework etc, but not the radiators themselves are included (fittings for 4 radiators). The electrics include 8 double socket plugs in total. And 4 light fittings.

It's not being painted, nor the flooring being done because a) the money we have is available in two chunks and the second chunk isn't yet ready and b) we were desperate for the build asap and they couldn't fit in the rest of the work (painting, flooring, fitting a kitchen etc).

The price includes knocking through the wall and inserting a steel. Oh, and prep/pipework etc for two bathrooms is also included in our price, but not the actual fitting of the bathroom. Essentially everything should be ready for a builder to come in and just fit it out.

I got my days wrong - I thought digging was due to start yesterday but it's actually Wednesday. I'm meeting the engineer on site to talk through plugs and radiators. Eeek!

Anyone hoping for a reduction in building costs needs to be hoping for a drop in inflation and material costs. The cost of things like steel has gone up by 50% in a year. Wood is similar. That is where the increased prices are coming from.

My DP is an electrician and he is really struggling to even buy some of the materials he needs. The wholesalers simply cannot get hold of them.

I’ve found some timber to be coming down in costs since the peak after covid, sheet materials are still more than they were but I’ve seen the cost of general construction timber starting to reduce. Not sure of steel as I’ve purchased any recently.

@Diyextension Brexit, Covid, Inflation and lack of labour = issues that are not easily resolved. Hoping builders lose business isn't going to improve these facts.

How am I hoping builders are going to lose business ?? All I am stating are my own own experiences of buying timber over the last few years and observing the prices when I’m at the timber merchant .
I keep a keen eye on prices as I’m renovating my house and I am finding that when people say prices are still rising, that’s not what I’m seeing ( timber).

I didn't say you were. There are people on this thread suggesting that as a recession hits, prices will come down. That is a hope that builders will lose work and have to reduce their prices.

Unfortunately for anyone hoping that recession will drive prices down, markets for many materials like timber are international, and the expected recession is basically a UK-only phenomenon (see today's news that the IMF is forecasting all major economies to be growing this year with the UK being the only exception).

Prices are for some things coming down from the peak last summer but they are still way way higher than they were in 2021 and things like windows and insulation which are staples of most jobs are still going up

www.theconstructionindex.co.uk/news/view/merchants-warn-of-further-materials-price-hikes?amp=1

www.building.co.uk/focus/latest-trends-and-prices-data-dashboard/5117104.article

www.data.gov.uk/dataset/75ee36ed-21f7-4d7b-9e7c-f5bf4546145d/monthly-statistics-of-building-materials-and-components