Buy or Build a House in 2024? Everything You Need to Know About Custom Builds

There are many lucrative property strategies that investors are benefiting from today. One route that is often overlooked is custom builds. Misunderstandings around costs and processes, particularly amongst those new to property investment, results in many disregarding deals with great potential. In this article we share everything you need about building your own house in 2022.

Table of Contents

How much does it cost to build a house?

As with any investment, the numbers usually determine whether something is a good investment opportunity or not. So, how much does it cost to build a house and how does this compare to buying a pre-built property? The cost of building a house will depend on many different factors such as the size, materials used, amount and cost of tradespeople etc. According to Checkatrade, the average cost to build a house (per m2) is £1,800. To put it into perspective, it will usually cost anything between £126, 000 to £300, 000 to build a 3-bed house.

This graphic should give you a general overview of what costs to expect:

What to consider when building your own property

There has been a lot of changes in the housing market in recent years. Lock-down saw the demand of property soar and with it, the surge in supply and bounce back of the construction industry. As we move into 2022, the industry is “forecast to continue to grow substantially, driven by increased demand in the private sector and Government investment into affordable housing.” Of course, this all impacts on material cost and availability. Here’s what you need to consider:

Finding affordable land for sale

There are many sources available in today’s market for finding affordable plots for sale. Most property sites such as Rightmove also feature thousands of plots for sale while platforms such as Plotsearch and Plotfinder cater specifically to those looking for plots of land for custom builds.

Hiring an architect

This is a crucial element of building any home. It’s imperative that you select your architect with care as they’ll play a huge role in the process. From floorplans and drawings to cist estimations and builder support. Not sure where to start your search? The HomeOwners Alliance has a ‘find an architect’ service that helps you to see professionals working in your area.

Understanding government regulations

This is also another vital element when it comes to custom builds. You’ll need to be aware of safety measures, processes and codes of conduct before getting started or it could lead to some hefty penalties.

Getting the correct material

The quality of material you use to build a house will ultimately determine whether it is well-constructed, sturdy, energy efficient and long-lasting. In this video, our co-founder Jay Munoz discusses some key material to use to build a house that is affordable, ecological and energy efficient.

Budget

While they can yield great returns for investors, custom builds are huge undertakings that require a robust budget. You’ll need to plan your budget wisely by also allowing for any mishaps that may cost you money you hadn’t included in your budget. Consider looking into any local or government backed funding or support to help.