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Might it be Cheaper to Build a New House than Move?

09/10/18

If you’re still longing for your dream home, then you may be considering the possibility of a self-build. But weighing up the financial and practical implications between building your dream home or buying new certainly is challenging. Here we’ve put together some financial and practical advantages of new house construction that you may not have thought about.

VAT Reclaim

VAT could count for 20% of the budget on a self build or conversion project, but there is a possibility under the DIY Housebuilders Scheme that you could reclaim most of that money back from HMRC once the build has been completed. The rules are that you must have created a new dwelling in its own right.  Therefore, the majority of new builds will be eligible and you should be able to reclaim the VAT.

For every self build, HMRC will request to see valid planning permission, which will include your detailed plans, as well as evidence of completion, usually in the form of a completion certificate, habitation certificate or a valuation office listing letter. You should weigh up the VAT implications before starting your new house construction.

Eco savings

New construction always beats older homes in thermal performance.  New builds have to adhere to minimum standards for energy efficiency and are therefore far cheaper to run and will dramatically reduce not only your bills but also your household carbon footprint.

Save on materials with rebuilds

If you’re looking to start a new build project, it might pay to consider building on your existing plot. Rebuilding projects can save on money by reclaiming any valuable architectural materials, such as brickwork, fire surrounds and slates. You may also be able to recycle rubble as hardcore for new driveways etc.

Ready-connected sewers, drains and services can save a small fortune, along with existing driveways, gardens and fencing.

Low maintenance

Older homes are more of a gamble, and have considerably more wear and tear, which can result in high levels of upkeep or some things may even need replacing. A new build on the other hand brings added peace of mind. Some construction companies even offer up to a 10 year warranty, so keep this in mind when researching builders.

What about a rebuild?

By rebuilding your current home, you can eliminate the hassle of moving and save costs on finally having the home you’ve longed for. The cost of demolishing whole structures is generally based on their volume.  As a rough guide, demolition could be in the region of £30 to £40 per cubic metre, but the price will depend on a number of factors such as ease of access or any work involving asbestos.

As you’ll already own the plot of land, this will be a significant saving. Plus, as mentioned above, salvaging any existing materials can also save you a lot of money. You’ll also save on landscaping and the cost of some or all service connections such as water, draining, electricity, gas and telephone.

Dream new builds with JVB Construction

Building a dream home is no easy feat, and requires dedication, time and a lot of planning. If you’re thinking of embarking on a new house construction project, our experienced team has the knowledge and skill to construct the highest quality property to your specification and budget. We have an outstanding track record in creating and updating traditional and contemporary homes. Please contact us for further information or a no-obligation quote.