Category: Blog

Building costs per square metre have reached historic highs over the last couple of years, driven by several factors which we’ll touch on in this article. More specifically, we cover the average cost of building a house per sq metre in 2024 across various regions in the UK.

Rather than providing you with an aggregated figure, we’ve mined the intel from millions of data points to show you the average costs per sq metre for East Anglia, London, the Midlands, North England, the South East, the South West, Wales, Scotland, and Northern Ireland.

Given the volatile rate of inflation and building materials prices, these estimates are constantly changing. We aim to publish a new article every six months to give you the latest insights.

Why Are House-Building Costs Rising?

We covered this at length in a previous article, but to give you a quick overview, building costs have risen sharply over the last couple of years, initially triggered by shortages in the pandemic, and then exacerbated by inflationary pressure.

But even after the effects of the pandemic abated, other economic factors have sustained the high materials prices:

• The Russia-Ukraine war has led to severe shortages of materials and fuel.
• Brexit has given rise to shipping delays, a reduction in foreign workers, and a widening trade deficit (the difference between exports and imports).
• A sustained level of high demand means builders and suppliers can charge more.

It’s doubtful that prices will return to previous levels.

Methodology For Our Construction Cost Calculations

House-building costs vary significantly depending on many factors. For instance, Purple Bricks reports that it costs on average £1,200 to £1,500 per square metre to build a house yet provides no context regarding the specification, location, or size of the dwelling. They’re basing that on a general rule of thumb.

The old adage “How long is a piece of string?” inevitably springs to mind.

In our calculations, we applied a consistent methodology across different regions. We focused on comparing a mid-range specification of a three-bedroom new-build project. The average number of bedrooms in the UK is 2.95 rooms per house, so we rounded it up to 3.

The average total floor area of a dwelling in the UK is 94m². However, new-build designs generally exceed the average floor area of a UK home. Our data shows that a typical two-storey three-bedroom new build has a gross internal floor area (GIFA) of 110m² – which we have based our calculation on.

Rooms included in our average costs are three bedrooms, a bathroom, a kitchen, a living room, a dining room, a cloakroom, the hallway and landing, and a dedicated boiler and storage cupboard. A garage was excluded from our calculations since only a third of UK homes have one.

In terms of build specification, our pricing calculator has three options:

·       Low spec is a basic finish; e.g. Leyland, Everest, Wickes.

·       Mid spec is a standard finish; e.g. Dulux, Hamilton, Slim Line.

·       High spec is a high-spec finish; e.g. Farrow & Ball, Fine Line, Siemens.

For the purposes of this comparison of build costs per square metre, we have chosen mid spec.

Average House Build Costs Per Square Metre – By Region

Here’s a table showing the average building costs per square metre for a three-bedroom house in the UK (by region), where:

·       Low benchmark – smaller companies are generally lower cost but less specialised and with low project management function; good for low/mid-spec projects and tight budgets.

·       Mid benchmark – medium-sized companies offer a balanced mix of cost-effectiveness and specialisation; good for mid-range projects for effective execution within moderate budgets.

·       High benchmark – larger companies generally have a higher cost base but can handle a wide variety of specialist tasks; good for mid/high-spec projects and project management.

Cost Per Square Metre Of Building A 3-Bedroom UK House (By Region)

Average Total Cost Of Building A 3-Bedroom UK House (By Region)

Here’s a table showing the average total building costs for a three-bedroom house in the UK (by region):

Methodology For Ground-Floor Rear Extension Costs

As above, we applied a consistent methodology across different regions when calculating the average cost per square metre for a ground-floor rear extension. 

This single-storey extension has a gross internal floor area of 30m2 (which estimates suggest is the UK average) and comprises three rooms in total: an open-plan kitchen and dining room, and a living room – including the costs of refurbishments in the existing rooms.

Costs Per Square Metre Of Building A Ground-Floor Rear Extension (By Region)

Here’s a table showing the average building costs per square metre for a ground-floor rear extension in the UK (by region):

Average Total Cost Of Building A Ground-Floor Rear Extension (By Region)

Here’s a table showing the average total building costs for a ground-floor rear extension in the UK (by region):

Average Cost To Build A House In 2024

So, how much does it cost to build a new house in the UK? That depends largely on where you are building. If you’re building a house in London, the overall cost is around £327,058 (excluding VAT), whereas it’ll cost you an average of £272,496 in North England.

Bear in mind that these are averages and that significant outliers do, in fact, exist. Manchester, for instance, is situated in the Midlands (according to our geographic categorisation; we work on postcode-specific pricing). According to Statista, Manchester has the second-highest residential construction costs per square metre in the UK – second only to London.

The big question on many minds is “Will UK construction costs fall in 2024?” The construction sector faces several challenges, such as a decline in housing demand, a stagnating economy due to inflation, and climbing mortgage rates – but what about rising costs?

In this article, we’ll explore how several economic factors are impacting the build cost of UK construction projects and the outlook for 2024.

A Look Back At Historical Construction Prices

Before we dive into what the market is currently indicating, let’s take a look back at historical prices. The latest figures released by the Department for Business & Trade suggest the construction material price index decreased by 2.1% in October 2023 compared to the same month the previous year.

If you look at the last 24 months in isolation, you see a gradual decline in construction prices. However, this fall is negligible when you consider the increase we saw in 2021/22 – when prices of building materials rose more than 45% at the beginning of the Covid-19 pandemic.

Despite a slight decline from the peak in 2022, material prices have held for the most part – even though the initial demand that triggered the spike has long since subsided. A 2.1% decline in the UK construction price index is a small shift.

Since construction output has fallen by around 7% in 2023, you might be wondering why construction material prices haven’t fallen more drastically. Economics is seldom so formulaic.

There are several factors influencing the prices of construction materials. Here are the ones having the greatest impact in the UK.

1. The Cost-of-Doing Business Crisis

We often hear that we’re in a cost-of-living crisis, but we rarely (if ever) mention that we’re in a cost-of-doing-business crisis.

Inflationary pressure has squeezed the value of the pound, and operating costs are much higher. Rising energy costs, interest rates, wages, and the cost of goods are eroding the profitability of building material suppliers.

Important! UK interest rates now seem to have reached a peak, and it’s expected that they will remain around 5.25% until 2025.

2. The Current Housing Market

Even though the sector has seen a 7% decline in the output of new-build housing as well as repair, maintenance, and improvement (RMI), the forecast for 2024 is more bullish. Glenigan predicts that construction output will grow around 12% at the start of 2024 due to a strengthening in project-starts and a pickup in housing spend.

For prices of building materials to drop, there would need to be a significant reduction in demand for those materials – but so far, construction output remains at relatively stable highs since records began in 2010. Thus, demand for build materials remains relatively high as well.

Even so, as we saw with the pandemic, in April 2020, construction output decreased by 40.1%, but that wasn’t accompanied by a drop in building materials prices – suggesting the construction market is much less reactionary to external economic factors.

3. The Brexit Impact

The cost of labour and materials have increased more steeply in the UK than in the EU, according to The Guardian. Analysis shows that, between 2015 and 2022, the cost of construction materials increased by 60%, whereas they rose only 35% in the EU.

The Guardian hasn’t made it clear which of those EU member states were included in its research, nor have they referenced which building materials this purports to. A more suitable comparison would have been between France and Germany (countries with similar GDP).

Nevertheless, one challenge that is apparent, however, is that before Brexit, 40% of construction workers in the UK came from other EU countries. The end of free movement means there is an even greater shortage of skilled workers, making it harder for companies to recruit and driving up the labour costs of construction projects.

A shortage of labour drives labour costs higher, which increases overall construction costs – subsequently reducing demand.

The Construction Industry Training Board has predicted that the industry will require an extra 225,000 workers to meet demand by 2027.

4. Government Initiatives

The total housing output in 2022 was healthy at £46.2 billion, but it was bolstered by government initiatives (Stamp Duty suspension and the Help to Buy scheme).

The Stamp Duty suspension remains in effect until 31 March 2025. The Help to Buy scheme, however, ended in March 2023. This means it’s now harder for first-time buyers to get a mortgage. They were previously able to secure a mortgage with a 5% deposit.

The dismantling of this support over the last year can be linked with the decline in construction output this year, with experts expecting a further impact in 2025 when the Stamp Duty cuts end.

An impending general election in 2024 could bring with it further stability or instability.

Labour pledges

At the Labour Party conference, Sir Keir Starmer promised to build 1.5 million homes during the next five years of parliament. He also pledged to:

• Bulldoze through the planning system in England
• Build on unused urban land (“grey belt”) to create next generations of new towns
• Increase the stamp duty for foreign buyers to disincentivise speculative overseas investment in UK property.

Conservative pledges

Back in 2021, the Conservatives set an ambitious plan to build 300,000 new homes a year, but in the year prior to the pandemic, there were 243,770 net additional dwellings.

At the Conservative Party conference, Gove reaffirmed the government’s commitment to:

• Building more homes (without offering specifics)
• Easing planning rules in cities to allow the conversion of empty retail premises
• Relaxing rules around barn, warehouse, and agricultural building conversions.

5. A Growing Reliance On Imports

One recent and alarming trend is the growing reliance on imports in the UK. Since Brexit, it’s clear that we do not yet possess the comparative advantages that our European neighbours do, such as Germany and Italy – who accounted for £2.2 and £1.3 billion of imports in 2022, respectively.

The gap between imports has more than doubled since 2015, with UK exports hardly growing in the last eight years. In 2022, the annual trade deficit widened by £3.9 billion to £15.5 billion, an increase of 34.4%. Why? Because foreign suppliers can provide commodities much cheaper than suppliers in the UK.

We imported £1.3 billion of sawn wood in 2022. Given the availability of land and the suitability of our climate for growing trees, it wouldn’t be hard to imagine a future in which the UK was self-reliant in timber production – leaving housebuilders (and their customers) less exposed to volatile prices and less exposed to supply chain disruptions at ports.

The UK also imported £700 million of linoleum products. The UK’s last surviving linoleum factory in Kirkcaldy, Scotland, which opened in 1847, is continuing to produce the eco-friendly and natural flooring solution (made of completely natural materials that come from renewable sources and are 100% biodegradable).

Should the UK be more independent when it comes to sourcing building materials? Self-reliance carries economic benefits as well as ecological benefits, but it’s not high on the agenda of our incumbent government.

What A Drop In Demand Of Brick Sales Tells Us

The UK market for brick sales saw a 29.1% decrease in brick deliveries in October 2023 compared to October 2022. It’s a similar pattern for concrete blocks too – a 24.2% decrease year on year. These early signs suggest that the demand for new housing is slowing.

Brick sales have dropped to their lowest level since 2010, and the downward trend looks set to continue. But that doesn’t necessarily mean to say we should expect a price decline.

Why prices rarely come back down

Unless there is something majorly disruptive, such as an innovation that slashes the costs of raw material production, prices of building materials rarely drop back to previous levels following a prolonged increase.

The price elasticity of demand refers to the change in demand when there is a change in the price of a product. Demand is considered inelastic if demand for a good or service remains unchanged even when the price changes.

Necessities such as building materials are inelastic, luxuries are considered elastic.

If demand sustains after a price increase, suppliers have no reason to reduce their prices – because that’s the price that customers are willing to pay. The Invisible Hand of the market determines whether prices will rise or fall.

Final Word On Construction Prices In 2024

Certain markets may see a temporary drop in material costs in 2024 (should we see a decline in construction activity), but due to the several economic factors outlined – government policy, construction cost inflation, Brexit, the annual trade deficit, and the current housing market – most material costs are unlikely to return to previous levels.

The cost of doing business has reached historic highs, meaning suppliers of building materials are faced with a stark choice: charge higher prices or wind up their operations.

Construction costs have soared in the last few years as demand has outstripped supply, but costs are gradually stagnating and have now fallen for four consecutive months. It’s not just hard costs that are volatile but soft costs, too.

Are you familiar with the difference between hard and soft costs? We’ll discover the nuances of each in a moment.

According to a McKinsey report, 69% of construction projects exceed their budget by around 10%. There are, of course, various factors at play in this – one of which is inadequate cost planning.

Understanding the difference between hard costs and soft costs will help you bolster your cost plans and bring stability to your construction projects.

Defining Hard & Soft Costs

Hard costs are expenses that are directly related to the physical construction process, while soft costs are indirect expenses that are related to planning and management.

• Hard costs are easier to quantify because they’re tied to specific construction activities and generally make up a larger portion of the total costs of a project.

• Soft costs are harder to estimate because they’re often spread throughout the project lifecycle, and they generally make up a smaller portion of the total cost of a project.

Exceptions

Since hard costs relate to tangible aspects of a construction project, you can be forgiven for thinking that land acquisition is a hard cost – but it’s not. Most professionals consider land a soft cost because acquisition takes place prior to the scheduled works.

What about furniture, fixtures, and equipment (FF&E)?

This includes both moveable furniture and fitted furniture that can be removed without damaging the structure of the building – for example, shelving.

As for repairs and maintenance involving physical labour after the construction is complete, these are categorised as soft costs. The same goes for gardening and landscaping costs.

The Main Soft Costs In Construction

When creating your cost plan, it helps to segregate soft and hard costs. Here are some of the main soft costs that you should include. Please note that this isn’t an exhaustive list and soft costs vary greatly in their nature.

• Planning: project management, coordination, and office support.
• Legal: legal fees, planning applications, and compliance with regulations.
• Insurance: various types of insurance coverage.
• Advertising: marketing and promotional activities.
• Repairs: maintenance and unforeseen repairs during construction.
• Security: on-site security measures.
• Rentals: facilities or temporary accommodation.
• Loans and financing: interest and fees associated with project financing.
• Design fees: architectural and engineering design services.
• Land costs: acquiring and preparing the construction site.

Remember, these are costs that are indirectly associated with the construction of a project – that is, the supporting costs that enable the physical construction of a building.

The Main Hard Costs In Construction

Hard costs typically account for between 70% and 80% of total construction costs. A few examples of these are:

• Materials: raw materials such as steel, concrete, and timber.
• Labour: wages and benefits for construction workers.
• Equipment: purchase or hire of machinery and tools.
• Utilities: connection of water, drainage, electricity, gas, etc.
• Mechanical systems: HVAC, plumbing, electrical, and fire safety systems.

Now that you know the difference between the hard and soft construction costs, it’s time to work up a solution for proactively managing them, before they spiral out of control.

Actionable Steps For Estimating Hard & Soft Costs

Accuracy is a must if you want to come in below budget. That means no more back-of-the-fag-packet calculations. You need to be methodical in your cost planning.

1. Understand the 5 levels of Cost Estimation

The Association for the Advancement of Cost Engineering (AACE) outlines five levels of cost estimation. Every level relates to the information that’s available at the time of estimation.

1. Order of magnitude estimates: when minimal design details are available, these are used to prepare rough estimates.
2. Study estimates: when early design details are shared, you can gauge the project’s feasibility.
3. Preliminary estimates: when initial data on materials and labour is provided.
4. Definitive estimates: when more detailed design information becomes available.
5. Detailed estimates: when complete information on the design, labour, and material costs is available.

It’s common for contractors to progress throughout a project’s lifecycle without iterating the cost plan. Is it any wonder construction companies overspend when the budget is based on woolly estimates?

Maybe you’ve given an indicative quote to a customer who’s taken that as concrete. Be sure to manage customer expectations at the outset and let them know the

2. Use BuildPartner Cost Planning Software

Using BuildPartner cost planning software, you can prepare a detailed estimate in a matter of minutes for hard costs, based on minimal or early design details.

As for the five levels of cost estimation mentioned above, BuildPartner enables you to prepare:

1. Order of magnitude estimates through per square metre rates.
2. Study estimates at the takeoff stage.
3. Preliminary estimates when scheduling the work.
4. Definitive estimates after specifying the itemised costs.
5. Detailed estimates at the point of analysing and collating quotes.

In that regard, it’s a full end-to-end process of cost planning for hard costs.

Whatever software or platform you’re using, your cost plan must include itemised costs. Not only does this give you transparency, but it’s important for the customer too, as it builds trust.

Having an itemised cost plan gives you greater customisation options. It’s so much easier for clients and contractors alike to adjust or remove certain components to better fit their construction budget requirements.

It also reduces the risk of errors and omissions. Ever accidentally forgotten to include the cost of an important component in a quote?

3. Bake A Contingency Plan Into The Price

Since over two-thirds of construction companies go over budget by at least 10%, it suggests that initial estimations are optimistic. It could be worse, though. Our government can scarcely manage a project like HS2 with incurring cost overruns of billions.

All manner of things can arise during project plans that contribute to overspend, such as:

• Changes to the construction schedule
• Scope or design changes
• Material price fluctuations
• Workforce availability
• Natural disasters, bad weather, or emergencies

With private firms, part of the reason for overspend is that firms are under-pricing to appear competitive and win bids.

That’s a commercial decision that only you and your team can decide, and you might be willing to risk it on smaller projects. But for the sake of accuracy, you should factor an additional 10% into more complex projects to cover any unexpected costs or delays.

Or, if you have access to historical data, use the percentage of overspend and apply that instead.

4. Track Running Costs

Cost planning isn’t a one-and-done process. Maybe you started out with a comprehensive spreadsheet, or maybe you’re paying for project management software – but are you using these tools to proactively track costs?

Ever find yourself saying, “There’s just not enough hours in the day”?

You’re too busy doing the actual doing, right?

We can all relate to this on a personal level. If we don’t check our bank statements, we quickly forget about our memberships and direct debits, and we’re oblivious to what we spend every month.

By virtue of tracking your expenses, you can act accordingly and:

• Stop buying expensive materials and source alternatives
• Identify discretionary expenses that can be cut
• Allocate funds based on strategic priorities

If you don’t track expenses, the profitability of your project is in the hands of the gods.

Final Word On Hard Vs Soft Costs

The success of any construction project hinges on the management of hard and soft costs. When a project’s stakeholders have full visibility of costs, it gives them greater control over the project’s outcome, to ensure that the vision translates into the desired outcome.

Frequently Asked Questions About Hard And Soft Costs

Here are a few questions that will provide some insight into hard and soft costs in construction.

How much contingency should a building project have?

The propensity to overestimate or underestimate a quotation varies by company, and the specific percentage depends on the complexity of the project. Those with access to historic data should take an average percentage of their previous overspend for similar projects. A general rule of thumb is around 10%.

What is cost planning in building?

Cost planning in construction is the process of estimating, managing, and controlling the costs. Those companies that adopt rigorous cost planning practices are more apt to stay on budget and within scope of a project.

What are fixed costs and variable costs in construction?

Fixed costs are constant regardless of the project’s scope or output, and they’re typically incurred before or throughout the construction process. Some of the main fixed costs in construction are salaried workers, office rent, and vehicle repayments.

Variable costs fluctuate as the project’s size or complexity grows and decrease as the project scales down. Examples of variable costs include materials, waste disposal costs, and subcontractor costs.

It’s frustrating when you invest a bucket-load of time into bidding for a construction contract, only to never hear from the client again. But with the UK construction industry expected to bounce back and grow 12% in 2024 – according to Glenigan – there will be more projects up for grabs.

Even so, winning construction bids isn’t just a simple numbers game that involves bidding on as many projects as possible. Those who do wind up stretched and committing to projects outside of their niche.

Do you want to win repeat business from those who aren’t your ideal customers? Of course not.
Here are seven tips to win construction bids with the right clients.

1. Find the Right Projects

Just like the client, you need selection criteria too. It works both ways. So, how do you know what to look for when choosing the right projects to submit a bid for?

For starters, a construction project should be profitable. You can expect some negotiation further down the line, but if the numbers don’t stack up at the outset, it’s time to move on.

You should also spend time bidding on jobs you have more chance of winning. If a contract requires a firm to have certain trade characteristics and capabilities, you should evaluate this versus your organisation. Think about whether you meet the specifications for:

• Team size and capacity
• Accreditation and certification
• Legal compliance
• Sustainability practices
• Financial stability (large firms may request a D&B credit report)

If you find yourself bidding on every project, you’ll be engaged in work that’s less suited to your capabilities. You’ll end up trapped in a vicious cycle, winning repeat business from those same customers.

Focus on your niche – weed out the rest.

2. Know Your Bid-Hit Ratio

Your bid-hit ratio is a calculation of your successful projects versus the amount of bids you’ve submitted. If you’ve submitted 36 bids and won four, your bid-hit ratio is 9:1. That means for every ten bids you submit, you win one.

Go a step further and carry out an in-depth analysis. Break the bids up into categories like public sector and private sector contracts, building type (extensions, new builds, renovations), location, and contract value (<£5,000, >£,5,000).

With this information, you may discover that your bid-hit ratio is much stronger for smaller private contracts, particularly extensions.

3. Prepare An Accurate Estimate

Your cost planning is the foundation of your bid. Some clients will scrutinise the itemised costs, and they’ll use this as a basis for comparison with other contractors.

Have you included everything in your breakdown?

Missing items off a quotation or inputting inaccurate measurements leads to inaccuracies that will reflect unfavourably on you.

Submitting an accurate bid has never been easier through the use of cost planning software.

For instance, with BuildPartner cost planning software, you can:

• Generate instant comparable quotes of different specifications
• Automatically compile a schedule of works with a visual timeline
• Filter out inappropriate clients at little cost with a quick, accurate cost plan
• Make sure measurements are accurate and cut out errors
• Ensure no items are missed out with detailed and complete templates
• Provide accurate pricing with project-specific rates and live material feeds
• See where you are in the market with accurate averages in your area

All of this brings an unparalleled level of transparency that is welcomed by both parties. If you’re not using cost planning software, your bids will likely drown in a sea of others

4. Follow Up With Clients

So, you’ve spent a tonne of time preparing your bid, but nobody has contacted you to let you know if you’ve been successful.

That doesn’t mean you can’t reach out to them.

You don’t need to go sending passive-aggressive emails asking why you’ve not heard back. You should, however, engage with them politely and request an update on the status of your bid. Even if you’re unsuccessful, it’s an opportunity to glean some feedback from them.

5. Get Feedback (And Implement It)

Next to winning a contract, the next best thing you can gain is valuable feedback when you’re unsuccessful.

If you walk away from a tender without feedback, you do so empty-handed.

We don’t always know what the weaknesses are in our pitch, and we rely on the honesty of others to share that information.

Some clients will be happy to tell you how you measured up versus the competition – whether you were priced too high or too low, or if there were any other sticking points.

Tip! In your parting email or conversation, thank the client for their time and be sure to express your interest in working with them should things not work out with the awarded contractor. In doing so, you’re strategically pushing your way to the front of the queue and positioning yourself as a contingency.

Don’t take it personally if you don’t hear back. Some clients might just be shopping your number and weighing up the bids of others. If you suspect someone is wasting your time, don’t waste any more time engaging them.

6. Write Detailed Proposals

If you write generic proposals or proposal templates, they’ll land on the clients’ slush pile, never to see daylight again. Each bid proposal should address the specifics of that particular job.

You might think that the old copy-and-paste method will save you many hours, but the reality is that it’s harming your bid-hit ratio.

A client can spot a pre-made proposal a mile off because they fail to connect with their specific needs. The can also sniff out what’s been auto-generated by ChatGPT and Google Bard as it’s often saturated with hyperbole, wooden language, and Americanisms.

Do your homework.

7. The Early Bird Gets The Worm

More often than not, a deadline will be specified, but that doesn’t mean the client isn’t actively assessing proposals in the interim.

You don’t have all the time in the world to submit your bid. Those who submit later on in the construction bidding process have to work harder to compete for the client’s attention and stand out from the crowd.

The anchoring bias is a psychological bias towards the first piece of information we are given about a topic. Our early learnings influence our opinions after that.

So, not only is it more likely that your bid will be reviewed when submitted earlier, but your bid will also be regarded as an authority or benchmark.

Why Do I Keep Losing Construction Bids?

If you’re receiving knockback after knockback, there’s likely a fundamental reason that’s preventing clients from awarding you the work. Stop to consider if:

• You didn’t understand the scope of the project
• The price wasn’t right
• You didn’t explicitly detail your costs
• You didn’t showcase your experience
• Your testimonials and evidence of past projects weren’t unsatisfactory
• You were missing documents and information
• You were late in submitting
• You don’t use the right tools

Price is often the deciding factor, but don’t sell yourself short. After all, if you are successful in your bid with a low price, your client will expect similar prices for future work. Are you prepared to keep winning business that underpays you?

Frequently Asked Questions On Winning Construction Bids

Here are some frequently asked questions on winning construction bids.

What evaluation criteria are used to assess construction bids?

Firms use lots of criteria when deciding which construction business to carry out their project. Professional organisations use a scoring system that analyses technical capabilities, price, quality, financial stability, compliance with requirements, sustainability credentials, track record of construction management, and the scheduled timeliness of the project plan.

What pricing strategy can I use for construction tenders?

There are many pricing strategies you can employ to arrive at your final figure. It’s important to be rigorous in your approach as your bid could be subject to scrutiny. Here are some of the main pricing strategies you can use:

• Cost-plus pricing is when you consider all costs (hard costs and soft costs), then add your margin (percentage markup) to your bid price.
• Value-based pricing is when your construction services are priced in line with what your customers are willing to pay.
• Most economically advantageous tender (MEAT) is when you offer a combination of price and quality. For example, in your bid, you may submit your lowest price (which is broadly weighted as 80% price and 20% quality), or you may wish to submit a competitive bid that reflects the highest quality (20% price and 80% quality). MEAT encourages fairness by ensuring that the cheapest suppliers don’t always win bids.
• Marginal pricing is based on the variation of output. For example, your price to build one home may attract a higher profit margin than if you were pricing for ten homes. Marginal pricing is particularly useful in expanding projects where the scope continually adjusts.

Final Word On Winning More Construction Bids In 2024

Some studies suggest that construction companies are spending as high as 22% of their operational turnover tendering for work. Tenders are fiercely competitive, and if you focus on quantity over quality, then you’ll see a margin of diminishing returns.

With each submission, your effort level will deteriorate. So you have to be selective and focus on your niche.

In an ideal world, we’d have a strong pipeline of work with our ideal customers and spend much less time submitting bids. But while we commit to a scattergun approach in bidding for contracts, that ideal remains beyond our reach.

As house prices have fallen for six consecutive months and prices have dropped 13.4% from their peak, it’s crucial to understand what UK House Price Predictions for 2024 mean for homeowners, landlords, and the construction industry.

According to the Office For Budget Responsibility, house prices are expected to fall a further 10% in the next year.

An impending general election also brings with it greater uncertainty. If the reduced demand for new housing and renovations continues, what will be the impact on the construction industry?

Let’s take a closer look.

The Trajectory Of The UK Housing Market

With rents at a record high and economists warning of a mortgage “time bomb”, you’re probably wondering about where the housing market is headed. But why is the UK property market in such a fragile position in the first place?

The short (and simple) answer is that it’s due to supply and demand. We aren’t building enough houses to meet the demand. When compared to the average European country, the UK has a backlog of around 4.3 million homes that are missing from the national housing market.

But the shortage has been the case for decades.

So why are things seemingly worse now?

• Climbing interest rates have made mortgages increasingly expensive
• The cost-of-living crisis and rising inflation have hit people’s spending power
• House prices have risen exponentially and wages are lagging.

In 1992, the average UK house price was little over four times the average person’s salary, now it’s around nine times the average person’s salary.

Over the last hundred years, aside from the occasional peak, the average price has stayed within the range of four to six times that of the average salary.

Since 1992, that figure has risen, preventing many would-be buyers from getting onto the property ladder and trapping them in rental accommodation.

So, where will the next decade take us?

The answer to that question may hinge on the results of the next general election.

Labour Policy Versus Conservative Policy

Labour pledges

At the Labour Party conference, Sir Keir Starmer promised to build 1.5 million homes during the next five years of parliament. He also pledged to:

• bulldoze through the planning system in England
• build on unused urban land (“grey belt”) to create next generations of new towns
• increase the stamp duty for foreign buyers to disincentivise speculative overseas investment in UK property.

Conservative pledges

Back in 2021, the Conservatives set an ambitious plan to build 300,000 new homes a year, but Michael Gove, the Secretary of State for Housing, has since backtracked, suggesting the initial target was advisory.

In the year prior to the pandemic, there were 243,770 net additional dwellings.

However, at the Conservative Party conference, Gove reaffirmed the government’s commitment to building more homes and said the party is also committed to:

• Easing planning rules in cities to allow the conversion of empty retail premises
• Relaxing rules around barn, warehouse, and agricultural building conversions.

What do the polls show?

The most recent YouGov voting intention poll shows Labour ahead at 43% and the Conservatives attracting just 27% of the vote.

The rest of the votes are distributed as follows:

• Liberal Democrats – 10%
• Reform UK – 8%
• Green Party – 7%
• Others – 5%

While there’s still a while to go, the current sentiment and the results of the recent Conservative by-election losses point towards a change in government at the next general election.

Investment into the housing market will be a key battleground to win over voters, so expect some outlandish headline promises.

The Renters Reform Bill

The Renters Reform Bill is currently under review by Parliament and is set to make the lettings system fairer for 11 million private tenants. If introduced, the Bill mandates the following:

• Periodic assured tenancies, providing more security for tenants
• Landlords must consider and cannot unreasonably refuse pets in their properties
• Landlords can’t refuse to house benefit claimants
• Tenants to give landlords two months’ notice before vacating

The Bill will also see the introduction of a new Private Rented Sector Ombudsman that will provide fair and impartial advice as well as binding resolutions.

But how would the Bill impact the housing market?

Despite making it fairer for tenants, these extra barriers put pressure on landlords in a market that’s already signalling an exodus of landlords.

If landlords and developers don’t supply the housing, who will?

“The government will miss their 300,000-homes-a-year manifesto pledge by a country mile,” according to former Housing Secretary Robert Jenrick.

Love them or hate them, the UK housing market needs private financing.

The Impact On The Construction Industry

We only have to look back at recent history, specifically the credit crunch, to see similar patterns of buying behaviour. The construction industry was one of the hardest hit by the financial crash in 2008, when house values dropped around 20%.

Many homeowners overextended themselves with 100% mortgage values and were left in negative equity.

That meant they were unable to downsize or get a better deal.

Today, around 400,000 people will see their fixed-rate mortgages end over the next few months, and they’ll be remortgaging on an average rate of 6.15% (for a two-year fixed-rate mortgage).

In September 2021, the average mortgage rate was 3.59%.

Depending on a homeowner’s loan to value, and the amount borrowed, repayments may be double or triple than what they were previously.

With mortgage repayments high and house prices declining, there is a very real danger of a “cost of ownership crisis”.

Over 50,000 people have already fallen into negative equity over the last twelve months.

A Bleak Forecast For 2024?

According to the Construction Products Association (CPA), the construction industry is virtually on the brink of a recession due to a (predicted) 7% decline in new-build housing and repair, maintenance and improvement (RMI).

Other forecasts for 2024 are more bullish. A Glenigan forecast predicts a bounce back of 12% at the start of 2024 due to a strengthening in project-starts and a pickup in housing spend.

Sceptics argue that the recovery will be postponed until rising mortgage rates cool and house prices stabilise – not to mention inflation.

There is hesitancy in the market, with many buyers adopting a wait-and-see approach, holding out for lower house prices and mortgage rates.

UK Property Market Frequently Asked Questions

Here are a few frequently asked questions regarding the UK housing market.

Are house prices dropping?

There is a consensus among economists that high mortgage rates of around 5% will remain standard for at least the next couple of years. Given the high-interest repayments, fewer buyers can afford homes, meaning it’s likely that property prices will fall.

Will there be a housing market crash in 2024?

Although there is some acceptance that house prices are taking a hit and will continue to do so, a decline of around 10% (as predicted by the Office For Budget Responsibility) hardly constitutes a crash, at least not a substantial one. A crash is usually defined as a decline of over 10% in a price index from the 52-week peak.

Will interest rates come down in 2024?

The Bank of England expects the base rate to drop to around 5% by the end of 2023, but some analysts’ market predictions point towards a rate rise to 5.75%. Regardless, Andrew Bailey, the governor of the Bank of England, warns that we should not expect interest rates to drop until we see evidence of inflation slowing. The expectation for 2024 is that interest rates will remain broadly flat.

Final Word On UK House Price Market Predictions

The UK property market and construction industry are intertwined. If the housing market were to crash, the construction industry could suffer a shock that would take years to recover from.

The housing policy of the government, both incumbent and impending, will play a large role in shielding both the housing market and the construction industry.

But lessons should be learned from previous stimulus packages.

Rishi Sunak’s stamp duty cuts during the pandemic to cushion the property market may have seemed like a good idea, but economists now argue the act pushed prices up beyond any tax savings for buyers.

The affordability and supply of housing remains the problem in need of solving. Stimulating demand will only exacerbate house price growth.

Some of the most sustainable and eco-friendly building materials in use today will surprise you. They’re not always the most expensive choice, and some will even save you money in the long run and add value to your construction project.

Fortunately, technological developments have accelerated in the construction sector over the last decade, and you have many building materials available.

While the UK government is funding grants for an additional 600,000 heat pumps in homes by 2028 as well as other decarbonising initiatives, there are voluntary steps we can take in the private sector to push us towards our collective net zero targets by 2050 – starting with making conscientious materials choices.

1. Solar Panels & Solar Tiles

Solar panels are an obvious choice, but since the spike in energy prices in 2022, there’s even more reason to design your construction project.

Around a decade or so, it was often remarked that solar panels would take around 20–25 years to pay off their initial upfront investment.

Now, estimates suggest that you could reach the break-even point in as little as 10 years for an average-sized residential property with a 4kW system – with an estimated annual saving of between £170–£565.

Commercial properties could see an even more impressive return on investment given their purchasing power.

2. Pallets & Crates

Pallets and crates are dirt cheap, and they can be repurposed for a variety of uses. Due to its varying tones, if treated properly, it can be a beautiful wood used both internally and externally. With them, you can build:

• Decking
• Sheds
• Outdoor lounge seating
• Planters
• Small picket fences
• Cladding for feature walls

If you’re using pre-loved pallets, you’ll need a team to clean, sand, stain, and seal the pallets before installation.

3. Paint That Doesn’t Contain VOC

Volatile organic compounds (VOCs) are chemicals that easily evaporate into the air and contribute to air pollution. Paints with VOCs can release chemicals into the air when the paint is applied but also for several days after application.

The VOC content in paint sold in the UK is required by law to be communicated on the product label. A product is considered to have low VOC content between 0.30% to 7.99%, and a product with minimal VOC has between 0% to 0.29%. Anything above that isn’t environmentally friendly.

Low VOC paints produce less odour and dry up to three times faster than solvent-based formulas.

4. Recycled Plastic

Plastic is a serious problem, and it accounts for over 90% of waste floating around in our oceans – around 46,000 per square mile.

Companies like Eco Plastic Wood use 100% recycled plastic to make their fence panels. The products have a 50+ year life; that’s over three times as long as wood fences, which last around 15–20 years.

You can also get 100% recycled plastic roof tiles that are designed to look like real slate.

5. Triple Glazing

Many buildings use double glazing as standard, but triple glazing is around 20–30% more energy efficient than double glazing. So even though they typically cost around 10–20% more, they’re more economically friendly as well as eco-friendly.

In terms of measuring heat retention, the U-value measures the heat transfer through a material.

• Single-glazed windows have a U-value of around 5.0W/m²k
• Double-glazed windows have a U-value of around 1.4W/m²k
• Triple-glazed windows have a U-value of around 0.9W/m²k

6. 3D Printing Components

3D printing technology is in its infancy, but some pioneering companies are using it to manufacture and produce raw materials on-site.

• The process of additive manufacturing adds successive layers of material to create products, only using what’s required.
• Subtractive manufacturing removes material to create a product.

The subtractive process of using timber involves felling a tree, limb removal, log cutting, transportation, saw milling, drying, treatment, storage, and distribution.

That’s a heck of a journey.

Green building materials used in 3D-printed homes are constructed out of concrete, thermoplastics, clay, metals, and wood chippings and sawdust.

7. Straw Bales

And he huffed, and he puffed, and – the straw house stood strong!

The load-bearing method (aka Nebraska method) involves piling bales on top of each other and creating support for the roof. They’re then plastered with earthen or lime-based materials.

Here’s a useful technical guide for straw bale construction to give you everything you need to meet UK Building Regulations.

As well as structural purposes, straw can also be used to thatch roofs and as insulation.

8. Reclaimed Wood

In the UK, five million tonnes of waste wood are generated each year, only 1.4 million tonnes of which are recycled.

The rest is burnt or landfilled.

You have the choice between using a traditional timber merchant or a reclaimed wood merchant. One of the most cost-effective solutions can be flooring.

If you can’t get your hands on reclaimed wood, your next best alternative is FSC-certified timber, where trees are harvested responsibly, so there is no net loss of forest.

9. Sheep Wool

Sheep wool is an excellent insulator, and it’s as good as rock wool and mineral wool. Thermal conductivity is measured in W/mK, where a lower value indicates a better insulator.

• Sheep wool has a thermal conductivity of 0.035 – 0.04 W/mK
• Glass wool and mineral wool have a thermal conductivity of around 0.044 W/mK

Sheep wool can be purchased in rolls or used unprocessed – the obvious drawback being that it’s more expensive.

10. Hempcrete Blocks

Hemp blocks are building blocks made of a bio-composite of hemp mixed with lime and water. It’s an alternative to traditional insulation due to its lightweight structure.

Important! It’s not used as a load-bearing structural material.

As well the hemp being a plant, the lime that is added to it undergoes carbonation, where it absorbs carbon dioxide from the air and hardens over time.

For those reasons, hempcrete has a negative carbon footprint and can sequester around 8.6 kg of CO2  per cubic foot.

11. Mycelium

Mycelium components are organic compounds that are formed from the mycelium of fungus and organic waste. Mycelium are thin roots of fungi that run underground, and it’s super strong when dried.

This 100% natural material can be grown into specific forms for different purposes:

• Insulation. Mycelium insulation boards can be used in walls, ceilings, and roofs.
• Packaging. IKEA is currently using this as an alternative to polystyrene.
• Boards. Mycoboard (medium-density fibreboard) can be used much like MDF.

The mycelium brick is in development, but with a compressive strength of 30 psi compared to 4,000 psi of concrete, it has some way to go. But weighing 43 kg per cubic metre compared to 2,400 kg of concrete, its lightweight structure makes it an attractive development.

12. Cork

Cork trees grow very quickly, and the sustainable material used is resilient and flexible for flooring and insulation. It’s widely available and an incredibly cheap flooring solution.

However, some cork flooring comes unsealed, and while it's cheaper, you’ll need to arrange for it to be sealed.

Cork can also be used as ceiling tiles in libraries, classrooms, and offices as they reduce noise levels and provide good thermal insulation.

Bottom Line On Eco-Friendly Building Materials

There’s a huge amount of innovation in the construction industry right now, and the race is on to find new organic compounds and synthetics that will go mainstream.

Until then, though, we should look back on more traditional building techniques to make an environmental impact. Just because certain practices went out of fashion, doesn’t mean to say they’re not practical.

Straw, reclaimed wood, cork, and sheep wool are eco-friendly building materials solutions that, if used extensively, will edge us close to achieving our net zero targets.

Sustainable Building Materials FAQs

How do sustainable building materials affect the environment?

While most naturally associate eco-friendly with a reduction in carbon emissions, other benefits include a reduction in deforestation and the protection of wildlife, waste reduction, and the use of less toxic materials that are unsafe for humans.

Also, the creation of durable products that last longer reduces the need for frequent replacement and conserving resources in the long run.

What are the main considerations when designing an eco-friendly building?

Renewable and eco-friendly materials are just one consideration when planning a sustainable construction. But there are a few other energy efficiency strategies you should consider:

• Water conservation. Rainwater harvesting systems collect and reuse rainwater for potable water (when treated), such as cooking, bathing, and drinking.

• Indoor air quality. Proper ventilation systems to reduce indoor pollutants and lessen the spread of harmful bacteria and illnesses.

• Waste reduction. Implement waste sorting and disposal systems to divert waste from landfills.

• Durability. Choose durable construction materials and methods that can withstand the test of time.

• Lighting solutions. Maximise natural light while minimising the need for artificial lighting. Install energy-efficient lighting fixtures.

• Smart technology. Thermostats allow the fine-tuning of the heating schedule to preserve energy.
• Recycled material. Using recyclable materials such as recycled concrete aggregate can be used as a substitute for natural aggregates.

Sustainability is no longer an afterthought when designing public buildings. The cost of implementation used to inhibit architects and prevent them from implementing eco-friendly strategies. But sustainable architecture has gone mainstream, and it’s here to stay.

At least, we hope so!

Yet, there’s more to sustainable architecture than just installing a few solar panels, planting the occasional tree, or using recycled materials. A mass adoption of the following strategies is needed to realise a cleaner, greener future.

1. Rainwater Harvesting System

Rainwater harvesting involves collecting and storing runoff in tanks or underground reservoirs. This collected water can be used for irrigation needs like gardening, flushing toilets, washing, and dishwashing machines.

Within a normal system, rainwater is classed as non-potable by UK water regulations. Unfortunately, this can’t be used for drinking, bathing, and cooking. (There are certain exceptions for off-grid properties.)

While few statistics show the savings for public buildings, a residential property can expect to save around 40–50% on water bills when using a rainwater harvesting system.

2. Green Roof System

Some of the earliest examples of green roofs date back to ancient Mesopotamia in 2500 BCE – the Hanging Gardens of Babylon, which was one of the Seven Wonders of the Ancient World. Even today in Scandinavia, sod roofs are used today to provide natural insulation. 

That doesn’t mean your planned development has to be covered in tonnes of earth to resemble a hobbit hole. Nor will you need to enlist the services of a goat to mow your roof lawn.

A typical green roof system consists of:

1. Structural support
2. Waterproofing membrane
3. Root barrier
4. Drainage system
5. Soil or substrate
6. Plants, grasses, and wildflowers

A green roof can raise the outside temperature of a roof by around 4.5°C in the colder months. As well as being a great insulator, it also promotes biodiversity and is a habitat for native plants and pollinators like butterflies and bees.

It’s one of the best ways to make a visible stand for sustainability, and it may inspire others to do the same.

3. Passive Solar Design

Passive solar design is an approach in architecture that harnesses the energy from the sun to heat and cool buildings, reducing the reliance on mechanical systems.

Buildings are typically faced within 30 degrees of south to allow sunlight to enter the building’s windows during the winter for natural heating (solar gain) and to provide adequate ventilation for cooling in the summer.

External shades such as roof overhangs, pergolas, and brise soleil can also be used to block excessive sunlight.

Internal wire meshes have a semi-transparent geometry and provide effective shade during summer and lowering the costs of air conditioning.

4. Room Dimensions

When drawing up plans, you should consider in detail the dimensions of each room to ensure they’re fit for purpose.

• High ceilings may look more sophisticated, but they’re much harder to heat.
• Rectangular or square rooms are the easiest to achieve uniform temperature distribution.
• Open-plan spaces should be zoned effectively to stabilise temperatures and avoid waste.

Designers should also ensure that it’s possible to place furniture where it doesn’t block heat sources.

5. Thermal Mass

The choice of materials in the design of a sustainable building plays a significant role in the energy efficiency of a building.

Thermal mass refers to a building material’s ability to store and release solar heat. Concrete, brick, and stone absorb and radiate heat slowly, stabilising indoor temperatures.

It’s quite common these days to render buildings and paint them white, but white or light colours will reflect heat away from your home.

Such a strategy is great for cooling buildings on the continent in Greece, but not so much in the UK.

Also, as far as glass is concerned, Alex Wilson at Environmental Building News suggests “A growing body of experts in sustainable design argues that our architectural aesthetic should evolve away from all-glass facades.” 

6. Electric Car Charging

By 2030, it’s estimated that there will be anywhere between eight and 11 million hybrid or electric cars on our roads in the UK. By 2040, that could exceed 25 million.

To support a clean energy initiative and keep up with that demand, the UK needs over two million charge points. As of writing, there are only 61,000 in operation.

A serious investment is needed from both the public and private sectors to bridge this gap. At present, drivers face long queues to charge their cars, and that needs to change to inspire more road users to switch to electric vehicles.

7. Native Landscaping

Native landscaping is an ecological approach to development that involves the protection of native flora to promote biodiversity and local wildlife.

When developing land, it’s sometimes possible to preserve a habitat for local wildlife. Not only that but it can also be visually appealing and a source of colour as the seasons change.

Population growth and urbanisation are factors that contribute to the loss of 64 million acres of forest land globally each year.

Trees are the lungs of the planet and each tree salvaged traps carbon dioxide and improves the air quality we breathe.

8. Build To Last

One of the most eco-friendly design strategies is to ensure that the building is standing in the next 100 years. When the pharaohs built the pyramids, I’ll bet they got such a kick out of knowing that these would stand for millennia. 

Be a modern-day pharaoh!

Certain building materials have a much longer lifespan. As the old saying goes, “Buy nice or buy twice”.

For instance, soldered copper pipes used in plumbing have a life expectancy of around 70–80 years, whereas push-fit plastic pipes last around 50 years and are much more prone to leaks.

Not only that but the cost of fixing water damage can be thousands, depending on the severity.

That’s just one example.

9. Smart Building Automation

Smart technology has made rapid advancements in recent years. The internet of things (IoT) has made it possible for facility teams to monitor, troubleshoot, and control building systems remotely.

Some examples of smart building automation are:

• Smart glass. Smart glass can change its transparency to control glare and heat gain, improving energy efficiency and the building occupants’ comfort.
• HVAC zoning. Zoning systems divide a building into different zones, each with its thermostat and controls, to allow for precise temperature control and reduced energy consumption.
• Daylight harvesting. Daylight sensors adjust lighting levels based on the amount of natural light available, reducing the need for artificial lighting during daylight hours.
• Leak detection systems. Sensors detect water leaks, monitor water usage, and control irrigation systems to conserve water and prevent damage.
• Smart power strips. These are equipped with timers, occupancy sensors, or remote-control capabilities, and they can automatically cut power to connected devices when they’re not in use.

10. Water-Efficient Fixtures

The installation of water-efficient fixtures can spare a building unnecessary expense and waste.

A faucet aerator, for example, can reduce the flow of water by up to 10 litres per minute. Couple that with a sensor, and the faucet will only dispense water when it detects a presence.

No more taps accidentally left running.

Also, waterless urinals save a substantial amount of water since they negate the need for flushing. And did you know that urinals account for 20% of water use in offices? There’s also no need to plumb in a water feed, reducing the cost and complexity of installation.

Low-flush (or dual-flush) toilets work by using less water. Traditional toilets use up to seven gallons of water per flush, while low-flush toilets use 1.3 gallons per flush (or less). 

These toilets are pretty commonplace now, but some renovations favour a classic look with toilets with a traditional pull chain. Avoid these where possible.

What Are Some Environmentally Friendly HVAC Systems?

Air Conditioning

Ductless mini-split systems provide zoned cooling, minimising energy waste by conditioning only the spaces in use. They’re suitable for smaller rooms and are fitted retrospectively as add-ons. 

They operate similarly to air-source heat pumps, and you can both heat and cool a building with just one system.

Heating

• Air-source heat pump

An air-source heat pump is a heating and cooling system that uses the outside air as a heat source in the winter, and it extracts heat from the indoor air and transfers it to the outdoor air.

They’re much more efficient than gas and electric boilers, and they will produce three units of energy for every unit of electricity it absorbs.

• Ground-source heat pump

Ground-source heat pumps utilise stable ground temperatures to provide efficient heating and cooling for buildings.

Before investing in a system – and this goes for air-source heat pumps too – you should check its coefficient of performance (CoP) and seasonal performance factor, which are measures of its efficiency.

• Underfloor heating system

Underfloor heating involves running a system of pipes and wires underneath a floor. They use anywhere between 15–40% less energy than traditional radiators. They’re more efficient because in traditional systems, heat rises only in specific areas.

• Solar power

Perhaps the most obvious choice that springs to mind when someone mentions sustainable strategies is renewable energy like solar power. 

EV panels are much more efficient and longer-lasting than they were ten years ago, and most now come with a 25-year performance warranty.

While panel performance degrades over time, an average yearly degradation of 0.5% (plus an initial 2.5% dip in the first year) will see your system operating at 85.5% efficiency after 25 years.

Few other renewable energy systems like wind turbines offer the same kind of convenience and output of solar power. 

Bottom Line On Sustainable Architecture Strategies For Public Building Design

It’s very easy for architects and designers to dismiss sustainability strategies. After all, so what if the finished building is an energy hog? The tenant pays for that… Right?

There does, of course, need to be a commercial upside to the implementation of these strategies. That often comes in the form of increased property value.

With energy bills skyrocketing, sellers and landlords are now coming under increased scrutiny over utilities costs. Gone are the days when a tenant’s only concerns were rent and rates.

If you’re running out of space, building an extension is much less disruptive than moving house. One stumbling block for many is planning permission – namely the rules of what you can and can’t build.You also need to brush up on the Party Wall Act and the neighbourhood consultation scheme. These pieces of legislation regulate construction activities affecting neighbouring properties to maintain harmonious relationships and avoid legal disputes between property owners.

The below guidance doesn’t apply to listed buildings, which are subject to stricter planning rules. The rules are also different if you live in an area of outstanding natural beauty. Where appropriate, consult with your local planning office.

The Original House Rule

In development guidelines, you’ll often see the term “original house”. This refers to the property as it stood on the 1st of July 1948 or on the date it was built after.

So, if the property already has an extension, you have to factor this into any future development. For example, one planning stipulation is:

You need planning permission if more than half the land around the “original house” is to be covered.

So, in this context, you need to exclude any previous developments from your calculations.

Types Of Planning Permission

There are two main types of planning applications: full planning permission and outline planning permission.

• Full planning permission is when detailed plans are submitted for all aspects of the development, which provides certainty for construction; it’s suitable for complex projects with defined details.
• Outline planning permission is preliminary approval based on concepts; detailed designs aren’t required at this stage, and this allows flexibility in design exploration, with reserved matters needing approval later.

Do I Need To Submit A Planning Application For An Extension?

Understanding where you require planning permission for an extension isn’t black and white. Not all extensions are built to the same specification, and the requirements differ depending on whether it’s a side, rear, front, or double- or single-storey extension.

All extensions

You need planning permission if any of the following are applicable to your extension:

• It’s forward of the front or side of the “original house” that faces onto a highway
• Over half the land around the “original house” will be covered
• Materials used aren’t similar to the existing house (except conservatories)
• The building will be higher than the highest point of the house
• Eaves and ridge height are higher than the existing house (single- and two-storey)
• Eaves height is more than three metres (if within two metres of the boundary)
• The building includes the addition of verandas and balconies.

Side extension

You need planning permission if any of the following are applicable to your side extension:

• Higher than four metres
• More than one storey
• Wider than half the width of the “original house”.

Single-storey rear extension

You need planning permission if any of the following are applicable to your single-storey rear extension:

• Higher than four metres
• A semi-detached house that extends beyond the rear of the “original house” by more than six metres
• A detached house that extends beyond the rear of the “original house” by more than eight metres.

Two-storey rear extension

You need planning permission if any of the following are applicable to your two-storey rear extension:

• Extends more than three metres beyond the rear of the “original house”
• Within seven metres of the boundary opposite rear wall
• Pitch of the roof pitch doesn’t match the existing property
• Side-facing windows are not obscure-glazed and can open.

Understanding The Party Wall Act

The Party Wall Act 1996 exists to prevent and mitigate disputes between neighbours. The law requires that you give notice to a neighbour if you are:

• Building near the boundary of a neighbour
• Working on a wall that separates your property from a neighbour’s.

It’s strongly recommended that you familiarise yourself with the Party Wall Act 1996 here.

The Neighbour Consultation Scheme Explained

If you’re planning to build a large single-storey rear extension, you’ll need to contact your local planning authority through a Prior Approval application.

Important! Your extension is classed as “larger” if it’s between 4–8 metres for a detached house or 3–6 metres for a semi-detached house.

Neighbours can object to your home extension, which can be investigated by your local council.

It allows neighbours to be informed about larger extensions, and it gives them an opportunity to express concerns or object to the development.

Generally, if the extension falls within the permitted guidelines, no action will be taken that results in you needing to apply for planning permission or remove the extension. However, the power rests firmly with the local authority to assess whether the project’s impact on surrounding properties is acceptable.

After the application has been submitted, the determination period lasts for 42 days.

Lawful Development Certificate (LDC)

While your permitted development rights may mean that you can proceed with your extension without planning permission, if you’re concerned about neighbour disputes, you can apply to your local planning authority to obtain a lawful development certificate.

It’s not a legal requirement to obtain one, but it serves as proof that your development is lawful, meaning you can carry out your project with confidence.

The costs to obtain a certificate vary depending on your country:

• England – £103
• Scotland – £101
• Wales – £85

Important! The fee is double if you’re applying in retrospect, that is, for a construction that has already taken place.

If you decide to use your permitted development rights (without needing planning permission), you may jeopardise your project. If your extension deviates from the rules, you risk being fined or forced to demolish the work.

It’s also likely that you’ll need a lawful development certificate at some point, anyway. If you decide to sell your property, in the absence of legal documentation, many buyers will be dubious when purchasing a property that’s been extended.

The 45-Degree Rule Explained

Imagine you’re looking at your floor plans from a bird’s-eye view. Using the midpoint of your neighbour’s nearest window, draw a 45-degree angle away from the window.

If your extension is within this line, it’s deemed acceptable; if it intercepts, then it’s likely that overshadowing will occur (loss of daylight).

The “right to light” gives a landowner the right to receive light through defined apertures in buildings on their own land which neighbouring properties have to take into consideration.

Planning Permission For Extensions – Bottom Line

After assessing the guidelines within, you should have a stronger idea about whether you need planning permission for your extension.

Even if your extension falls under your permitted development rights, and if you proceed to build without planning permission, applying for a lawful development certificate will give you peace of mind before commencing construction.

For specialist projects or if you need any further advice, contact your local planning authority or a planning consultant. If you live in Wales, Planning Aid provides free expert advice.

Planning Permission FAQs

Are building regulations the same in England and Scotland?

Building regulations in England and Wales are set out in the Building Act 1984, and those in Scotland are set out in the Building Act 2003 (Scotland).

So if you’re a developer planning a project spanning multiple locations across the UK, you’ll need to factor in localised regulations. For example, in Scotland, sprinkler installations are mandatory in flatted accommodation, larger multi-occupancy dwellings, and places that deliver care.

What is the difference between building regulations and planning permission?

Building regulations determine the minimum standard for the design and construction of buildings. The regulations are primarily concerned with structural stability, safety, and technical compliance.

Planning permission relates more to the external appearance of the building and ensures any landscaping considerations are in keeping with the local environment to deter inappropriate developments.

What is the 4-year rule for planning permission in the UK?

The four-year rule (which applies to dwellings under class C3) states that local authorities can’t serve enforcement notices for unauthorised developments four years after the commencement of the development.

Despite the rule helping many homeowners gain retrospective planning permission, the four-year rule is set to be phased out in 2023 – thereby closing the loophole.

What is retrospective planning permission?

Retrospective planning permission is sought after building work has already been completed when the necessary permission hasn’t already been obtained. A council may request that you apply for this, for example, if you have constructed a house extension with different materials than what was originally granted.