5 Things Not To Miss From Your Renovation Budget
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Having a detailed initial renovation budget will mean you will have a good control over your renovation costs from the outset.
Whilst most renovators immediately budget for the large costs, such as labour and materials, architects fees, new kitchen or bathroom, there are many costs that are sizeable that need to be included in the budget early in the process.
We cover off some of the most common items that are often overlooked but are usually required in the budget.
If you are thinking about a renovation project in the near future and need some help with where to start with your project, try our renovation advice session.
Renovation advice session
1. Building Control Costs
When we think of fees for a renovation project, most people immediately think of the architects fees and planning permission costs, which are obviously a large amount of the project fees.
However, regardless of whether you need planning permission for your renovation, you will require building control approval which comes with unavoidable associated costs.
Firstly, you will have the application fee which varies depending on where you are based in the UK and the type and size of project, but expect to pay around £200 - £300 for a standard loft conversion or extension.
Then you will need to pay the building inspector fees which are roughly £400 - £500, again this varies depending on your project, your location and whether you are using a private or local authority building inspector.
So including around £600 - £800 for building control costs in the initial budget is sensible.
Other fees that are often overlooked but not always essential include build over agreements, Party Wall surveyor fees and tree surveys.
2. VAT at 20%
Often we see construction costs quoted per square metre for an extension but it's important to remember that these numbers won't include VAT at 20%.
When you are estimating your high level budget for your renovation, you should include VAT at this stage to be prudent. Our extension cost calculator provides a high level cost estimate which includes 20% VAT.
If you are working with a building company who are carrying out the end to end renovation then they likely will be VAT registered due to the size of their business.
Some smaller businesses will not be VAT registered which could help to save on the renovation costs, however you should check with your builder up front whether they are VAT registered and confirm whether their quote includes VAT.
3. Upgrading Your Heating
If you are buying a home that requires a lot of renovation work then it's likely that the existing boiler will be old and needing to be replaced. The cost of simply switching an old boiler for a new is around £2,000 - £3,000. If you are planning to move the location of the boiler then expect to pay more as you are moving around the pipe work.
If you are increasing the size of your home which may include an additional bathroom or utility, it's also important to make sure that your heating system can come with the additional pressure.
For example, you may need to replace your old combi boiler with a conventional boiler and also look to include an unvented hot water system to provide more pressure throughout your home - expect to pay around £1,500 for the new hot water system.
You may also decide that it's the time to swap your boiler for a heat pump which is far better for the environment, however the cost will be between £7,000 - £20,000 depending on the type of heat pump and your property itself.
4. Internal Decor
It's the little things that often add up to a lot during a renovation, so it's important to set aside a reasonable budget for the internal decor.
Items like light fittings and switches, downlights, skirting and paint are all essential and you should budget for these at the outset. These are costs that won't be included in the builders quote unless you have specifically asked them to source these for you.
It's worth setting aside a budget for all of the internal decor so the quality is not compromised at the end when you have no budget left.
5. Contingency of 15-20%
More so than ever, it's important to include a good sized contingency budget to deal with any unforeseen costs.
Contingency budgets should be used for issues that crop up throughout the build; this could be things such as deeper foundations required, dampness issues or removing some trees. With rising renovation costs, the contingency budget should also be used for any additional rising costs for labour and materials. We recommend that 15-20% of the labour and material costs should be set aside as a contingency.
If you need more renovation budgeting advice, read our guide How To Budget For Your Renovation.
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