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How Much Does It Cost To Build The Average Home?

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Obviously houses are worth what people will be willing to pay for them, but I'm thinking a lot of new builds will still make some profit despite the hpc? Especially if they used cheap materials and labour.

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Thanks for that, newdman - you learn something new every day.

Out of the £70,000, do you know how much would be set aside for demolition and site clearance? I am in a semi, btw.

EDIT: It's a new development - house built in 1990 so no historic building here, if that helps with any estimate.

Maybe 10-15k depending on location in the UK (based on rough guesstimate of larger buildings demolition I have worked on and scaled down to a house)

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Most building insurance figures arfe provided by mortgage valuers as they are part of the standard form. They are worked out by measuring the external floor area ( X 2 for two storey etc) and multiplying this by cost per square metre provided by the Building Cost Information Service (BCIS). These figures are updated monthly and allow for location, general standard of construction etc. Various 'extras' are allowed for such as potential difficult access for fire engines.

Rebuild cost has little correlation to market value. You can have a three storey Victorian terrace in a very poor state of repair with a market value of say £120,000 but may have a floor area of 350 sq ms @ £1000 per sq m giving a rebuild cost of £350,000 (in very rough terms).

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Assuming the average home to have three bedrooms (average size family of 4 heads) I would put the materials cost of between 60 and 70k buts that's for a one-off and going to be no thrills. For large projects material spend can be reduced by about 20-30%. There has been a huge increase in layout for materials such as copper,lead,steel,plastics and wood. With the market value of houses dropping and materials rising the margin for error has got smaller and smaller.

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...build the same style house in South Kensington and in North Manchester...the main factor in the cost difference is the price of land....same house different location...it's all quite logical..... <_<

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My home insurance assigns a rebuild value of £70,000. I bought it for £120,000. Work that out.

rebuild cost is always higher then the actual cost of building because it includes the cost of demolition and site clearnace

the extra cost for rebuild on top of the build cost depends on the type of property

detached is obviosuly the cheapest becasue noone else's house is attached to yours - semi detached costs more and terraced even more

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rebuild cost is always higher then the actual cost of building because it includes the cost of demolition and site clearnace

the extra cost for rebuild on top of the build cost depends on the type of property

detached is obviosuly the cheapest becasue noone else's house is attached to yours - semi detached costs more and terraced even more

Thanks for that, newdman - you learn something new every day.

Out of the £70,000, do you know how much would be set aside for demolition and site clearance? I am in a semi, btw.

EDIT: It's a new development - house built in 1990 so no historic building here, if that helps with any estimate.

Edited by Pacific State

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Thanks for that, newdman - you learn something new every day.

Out of the £70,000, do you know how much would be set aside for demolition and site clearance? I am in a semi, btw.

EDIT: It's a new development - house built in 1990 so no historic building here, if that helps with any estimate.

I found a calculator on the internet once - I think I bookmarked it - so I'll see if i can find it

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Rebuild cost has little correlation to market value. You can have a three storey Victorian terrace in a very poor state of repair with a market value of say £120,000 but may have a floor area of 350 sq ms @ £1000 per sq m giving a rebuild cost of £350,000 (in very rough terms).

350 sq ms would be a massive terraced though .

Average 2+1 up , 2 down , kitchen , bathroom is probably only around 60 sq ms afaik .

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A standard Persimmon 3 bed house with intergral garage is 67k.

If you were just going a basic site strip (vegetation etc.) would be 2k ish. To demolish an existing property can be up to 15k maybe more if asbestos is contained therein.

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A standard Persimmon 3 bed house with intergral garage is 67k.

that kind of home was 90k before the boom.

so thats still a decent markup.

now theyd be asking the deaf for £220+

what kind of margin is that ?

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now theyd be asking the deaf for £220+

what kind of margin is that ?

Well, if you paid £100k for the plot.. the land owner gets a decent margin.

A property crash is really a land value crash, the land value going down by much, much bigger percentages. Let's hope none of the big builders are sitting on land purchased at £100k/plot, soon to be £10k/plot..

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this year I rebuilt a barn in France. Purchase cost last year for the ruin - 40,000. Total rebuild cost, 330,000 EU. (managed to keep it down below 1k per mtr sq, incredible as it may seem)

Expensive?

No.

I just flipped it to a pair of Yanks for 700,000

There's one born every minute.

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...build the same style house in South Kensington and in North Manchester...the main factor in the cost difference is the price of land....same house different location...it's all quite logical..... <_<

Absolutely right... in some parts of the coutry (not the best granted) you can buy a house for say £70k with a rebuild cost of over £100K.... in others like London for instance the same house might be worth £250k or more.

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Absolutely right... in some parts of the coutry (not the best granted) you can buy a house for say £70k with a rebuild cost of over £100K.... in others like London for instance the same house might be worth £250k or more.

tis true, but labour is more expensive in cities. I think i remember a developer saying costs were split 3 ways, land, build, and connection costs (water, road etc) & profit

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  • 395 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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