Most renovation budgets do not go wrong because of the building work itself. They go wrong because of the costs that were never written down. A realistic budget from day one keeps the project – and your stress levels – under control.
Start with the build cost
Get a detailed, itemised quotation from your builder based on clear drawings and a written specification. The more detail at this stage, the fewer surprises later.
Always include a contingency
Older buildings hide things: rotten joists, old wiring, poor foundations, damp. A contingency of 10-15% of the build cost is sensible, and more for very old or neglected properties.
Understand VAT
VAT is normally charged at the standard rate on renovation work. Some projects may qualify for a reduced rate – for example, renovating a home that has been empty for a long period – while new-build homes are generally zero-rated. The rules are detailed, so check HMRC guidance or speak to an accountant before you rely on a reduced rate.
Professional fees
Allow for architect or designer fees, structural engineer, Building Control fees and planning fees where needed.
Items often left out
- Kitchens, bathrooms and appliances if supplied separately
- Flooring, tiling and decoration
- Curtains, blinds and light fittings
- Landscaping, driveways and boundary walls
- Skip hire and waste disposal
- Temporary accommodation or storage if you need to move out
- Increased insurance during the works
Prioritise
Spend first on things that are hard to change later – structure, insulation, windows, heating, wiring. Finishes such as furniture and some decoration can be upgraded over time.
Avoid mid-build changes
Changing your mind once work has started is one of the most expensive things you can do. Finalise layouts and specifications before the builder begins.
For more, read what affects the cost of an extension and our guide to getting the order of works right. SC Developments provides clear, itemised quotations – contact us to get started.
