Self-build: what kind of house could I build for £1m?

[ProfessionalPirate]

DH and I have always dreamed of doing a self-build, and a plot has come onto the market that has got us interested. It already has a very run-down bungalow on it, so we’d be looking at knocking that down and starting again.

After land purchase our build budget would be around £1m. But I’m struggling to work out if that would be enough to build the sort of house we want. We’ve contacted an architect who we’ve worked with before for his opinion, but I know it’s going to be a difficult question to answer without actually going through the planning process and talking to a QS! So I’m wondering if anyone here who has been involved in a self build recently could share their experience with me?

Our minimum requirements would be 5 bed, 3 bath, dressing room. Large kitchen/diner/living. Separate sitting room. Playroom. Office. Plus landscaping / driveway. We favour fairly traditional- looking stone houses with modern touches. In the north of England, in case that makes a difference.

Well it must be possible to get ballpark build prices, no one’s self build ideas would gol anywhere if you couldn’t do that. If the house I want to build is theoretically possible based on a ‘typical’ plot I would then expect the architects to tweak the design or size should the plot turn out to be more problematic. I’ve looked at the typical build calculations you see online of course, but they are very vague on the type of build or spec. I also notice that the figures don’t seem to have changed much since the last time I was looking at this around 10 years ago - makes me suspicious as I know build prices have soared since then!

Maybe I should be asking for tips on what to look for in a plot? The ones we are considering all have existing houses so utilities there, flat, good road access, plenty of space, no neighbours.

Had some helpful insights from this thread though, realising that the house of my dreams at a highish spec will be out of reach on our budget. So at the very least I can modify my expectations.

I think we’ve got a plan to enable us to live in our current house while the build took place, at least for a while. We would then have an option to live with family for a bit. So hopefully won’t have to factor in rental costs.

@ProfessionalPirate , four years ago we bought a run down bungalow and built a brand new five bedroom, five bathroom home. What you want sounds a tiny bit bigger than ours. With landscaping and a high end finish our build came in at just under a million. We’re in the SE so build costs might be a tad higher here but I think you may struggle on that budget now although ours was technically an extension and we paid VAT on everything which I don’t think you do if you totally demolish and start again.

Most self builders demolish an existing house these days. If you're in the greenbelt, the principle for development has already been established this way, so that's a bonus. Get a good ground survey (and all surveys) done upfront so you know what you're working with - that way, there will be no nasty surprises once you break ground. Particularly important if you're adding a basement or pool.

Thanks that’s helpful, can I ask what sort of construction it was? The saving on VAT will definitely help.

Thanks, I’m also wondering how difficult it will be to get planning permission for a largish house when the current one is a small bungalow plus barns. But I realise no one can answer that question as it will be area specific, or depend on how the PO is feeling that day!

Check the local authority guidance to see if they have strict rules for greenbelt development - some do and others are more flexible. Ours stated a 50% increase in size is usually the maximum they allow in the greenbelt (not set in stone) but we were allowed 300% as our plot is out of sight of public roads, hidden by trees etc so wasn't considered to have any notable visual impact. Expect to lose your permitted development rights if you go larger (but you can usually find a planning consultant to get these re-instated for you for around £1k). As others have said, it depends on your plot and it's location.

New builds are vat exempt (well you have to claim it back now but effectively exempt)

I can’t seem to see anything referring to this on our LA website but will look into it. 50% on the tiny bungalow certainly wouldn’t give us enough space. I think we’d be coming from the angle of replacing the barns rather than the house. I’ve found a list of local replacement dwelling plans and their decisions which I will have a peruse of, might give some insight.

Can it be done? Yes. 3k/m2 etc are just guides. To progress beyond that you need to now need to identify someone who can take your £1m and design around that. Eg someone mentioned oak framed houses eg oakwrights. Go to them tell with you plot info and £1m all in budget and they can design you a house that meets your constraints. Another key factor is who will build and how quick. Quickest/less stress is get Project Mgr who will coordinate everything and building firm, but is the most expensive. Least expensive is PM it yourself with a 2 or 3 guys, but it will take 2 years and be v stressful.

Also you say there is an existing bungalow on site? Common practice to reduce tax is to incorporate the existing building into the new house, thus “extending” the current building rather than demolishing it and saving a significant amount on tax

That's a good idea because it shows you the type of proposals that have been approved. I think they also look at percentage of development versus plot size too (not more than 50%). With the house and outbuildings, ours still came in at less than 5% of the plot size (excluding fields, etc obviously). A local planning consultant (much as I dislike them) will be able to share insights too fairly cheaply.

You mention it being equestrian, that will mean the land/property costs more than one that isnt.

You also mention lots of barns, so factor in bat surveys and solutions and so on.

Landscaping normally costs around 10% of the value of the property.

I’m not sure I could face project managing myself. So I would have to factor that into our overall costs. I thought incorporating the existing building would increase tax costs vs knocking down and starting again? It wouldn’t be an option on this particular site anyway, as it’s in the wrong position. We would be wanting to build on the site of the existing barns (which aren’t convertible).

Ah yes bats! I’d forgotten about those. Another consideration!

That's not correct. New homes are VAT free - extensions aren't.

If you're in the greenbelt, you will need a PEA first and from there (depending on the findings) Phase 2 surveys for badgers, GCN, bats, etc plus tree surveys etc. Results of those will inform mitigation strategies, if licenses are needed, when works need to be scheduled etc. All very straightforward.

Yup you’re right. I wrote it and submitted it then thought “Have I got that the right way round?” And checked by which time it was too late to edit.
However the general point stands - there are potentially other tax implications to consider eg CGT on potential disposal of the old bungalow, so OP needs to ensure they have a full understanding and have factored in those costs, if any.

Another good point, I’m not sure of the exact size of the curtilage but it’s not huge.

Depends on your definition of “fucking big” but no you won’t get a massive mansion for £1m. A nice large 5 bed as described by the OP is within reach though.

If I can help in any way or share my experience, feel free to PM me. 😊

Is it in a popular area? Close to decent schools? Etc

When we (briefly) looked at self build, I thought the equation was 1/3 cost of the plot, 1/3 cost of demolishing existing building/ making good the plot , 1/3
build?

In any case, I know demolishing and clearing away that bungalow inc its footings will have quite a substantial cost.

Yes it is. Are you thinking about the final value of the house?

No, I’m thinking that a large piece of land ripe for development will surely arouse interest from developers

It’s protected class 3 agricultural land, nowhere near a village with a comparatively small existing house / curtilage large enough for one family home only. I can’t see developers being able to do much with that.