Renovation vs new construction cost

We’re going to explore the differences between renovation vs new construction costs in the UK. Whether you’re thinking of doing up your home or adding a double-story extension to your semi-detached house, there are always two options available to you: renovate or build new. However, both options come with their own unique costs, benefits, and challenges.

So, without further ado, let’s work out if it is cheaper to remodel your home or build a new one.

Related content: Rebuild cost vs market value: What’s the difference?

Renovation vs new construction cost

Typical renovation costs in the UK

Renovating a home involves making modifications to an existing structure. As a result, renovation costs in the UK are varied and based on several mitigating factors. For example, the size of the project, the materials used, and the location of your property.

Let’s explore the common costs associated with renovations.

Labour costs

The cost of a skilled tradesperson plays a significant role in the overall price of a renovation project.

Depending on the complexity and the scale of the work involved, you may need to hire various tradespeople such as carpenters, plumbers, electricians, and decorators.

In the UK, labour costs typically range from £40 to £80+ per hour.

Material costs

Materials are another substantial expense when it comes to renovating your home. The type and quality of materials you choose will affect the overall cost.

For example, if you’re upgrading your kitchen, you may need to consider costs for appliances, cabinets, worktops, and flooring.

As a result, it’s hard to quantify an average cost. Materials for renovations or new builds often range from a few hundred pounds to several thousand depending on the type. However, the final number will depend on the scope of the project.

Permits and fees

Renovation projects often require obtaining planning permission and building regulation approval.

These permits and fees will vary depending on your local council and the nature of the renovation.

However, costs typically range from £500 to £2,000 or more, depending on the complexity of the project.

New construction costs in the UK

Building a new home from scratch involves significant costs, all of which depend on factors such as the size of your property, its location, and the materials you want to use.

Let’s explore the common costs associated with new constructions in the UK.

Labour costs

New construction projects require a skilled workforce. For example, architects, contractors, and various subcontractors like electricians, plumbers, and bricklayers.

As a result, labour costs for a new build can range depending on the complexity of the project.

Material costs

Material costs for a new build will vary based on the quality of materials and your design specifications.

Building a home with higher-end finishes and sustainable features will significantly increase the overall cost.

For example, material costs for new construction can range from £800 to £2,500 per square metre.

Related content: What are the most sustainable materials for buildings?

Permits and fees

As with renovation projects, new constructions need planning permission and compliance with building regulations.

Permit and fee costs will naturally vary across different regions and depend on the size and complexity of the project. As a result, these costs can range from a few hundred to several thousand pounds.

Related content: How to find a renovation contractor.

Is it cheaper to build or remodel?

Determining whether it’s cheaper for you to build or remodel your home depends on several factors. These include the scale of your project (barn conversion vs. garage conversions will obviously vary greatly!), the materials you choose, and the location of your property.

In general, renovation projects are less expensive than new construction projects due to the lower labour and material costs associated with working on an existing structure.

However, it’s crucial to note that extensive renovation projects; for example, adding extensions or substantial structural changes, can start to equal the cost of building a new home.

Building a small, straightforward home with standard finishes might have a comparable cost to a moderate renovation project.

Is it cheaper to remodel or tear down and rebuild? Pros and cons

When deciding between renovating and new construction, it’s essential to consider factors beyond cost, such as your goals, budget, and timeline.

While cost is an important factor, it shouldn’t be the only thing that affects your decision. A poor construction or renovation project will cost you a lot more than money in the long run.

Pros and cons of a renovation

If you’re looking to save money and already love the location and layout of your current home, a renovation project might be the more cost-effective choice.

Renovations allow you to breathe new life into your property, update its features, and customise it to suit your changing needs.

By reimagining existing spaces and improving functionality, you can enhance both the aesthetic appeal and value of your home.

Pros

• Cost savings: Renovating an existing home is generally more cost-effective than building a new one, especially if the changes are relatively minor
• Location and an established neighbourhood: Renovating allows you to stay in familiar surroundings
• Preservation: Renovating an older home lets you keep its unique charm and character
• Faster project completion: Renovations often have shorter project timelines compared to new constructions

Cons

• Hidden issues: Older homes often have unforeseen issues that arise during renovations
• Design limitations: Structural changes and existing features might limit your design vision
• Poor efficiency: Older homes are harder to make energy-efficient without huge modifications

Pros and cons of a new construction

On the other hand, if you dream of a completely personalised and tailored living space, or if your existing property doesn’t meet your requirements in terms of its size or layout, a new construction might be the better option.

Building a new home provides the opportunity to start from scratch and create a dwelling that perfectly aligns with your vision. Additionally, newer homes often incorporate energy-efficient features and the latest building technologies, which can lead to long-term savings on utilities and maintenance costs.

Pros

• Customisation: You have the freedom to design and personalize every aspect of your home
• Modern features and efficiency: New homes are constructed using the latest building materials, technologies, and energy-efficient systems
• Warranty and reduced maintenance: New constructions often come with warranties on generally require less immediate maintenance and repair compared to older properties
• Compliance with building codes: Compliance with current building codes and regulations is a given

Cons

• Higher costs: Building a new home is typically more expensive than renovating, primarily due to higher labour and material costs associated with starting from scratch
• Land acquisition: Finding suitable land in desired locations is often challenging and costly
• Longer timelines: New construction projects generally require more time for planning, obtaining permits, and completing the construction process. Delays also occur due to factors like weather conditions, contractor availability, and unexpected issues
• Disruption and relocation: You need temporary accommodation during the construction process, which is inconvenient and incurs additional costs

Final thoughts

In the UK, it’s worth noting there might be additional considerations related to heritage or conservation restrictions – particularly if you live in a listed building or a protected area.

If these factors apply to you, they will impact both renovation and new construction projects and potentially influence costs and the extent of modifications allowed.

Just make sure you carefully evaluate your needs, budget, and your potential return on investment when making the important decision between a renovation vs new construction cost.

Whatever you choose, investing in your home will enhance your living experience and potentially increase the value of your property in the long run.