Cost to build a house?

PasturesNew

abaxas wrote: »

If a builder can build a 2 bed terraced starter home and sell it to you for 70k. You do the maths.

Round my way £70k would be about a 30% SO on a 2-bed terrace, with allocated parking in a nearby row.

abaxas

PasturesNew wrote: »

Round my way £70k would be about a 30% SO on a 2-bed terrace, with allocated parking in a nearby row.

All depends on land costs.

Houses are not expensive things to build.

ILW

So is it purely land cost that means a two bed starter in the home counties costs £200k upwards, or is someone making a fortune?

Alat shoul onlt be around £40k to build.

abaxas

ILW wrote: »

So is it purely land cost that means a two bed starter in the home counties costs £200k upwards, or is someone making a fortune?

Alat shoul onlt be around £40k to build.

No,

Land is cheap. Farmland is 1-10k an acre.

Planning permission is the difference.

FTBFun

abaxas wrote: »

No,

Land is cheap. Farmland is 1-10k an acre.

Planning permission is the difference.

Farmland tends to be somewhat scarce in the middle of towns and cities though.

abaxas

FTBFun wrote: »

Farmland tends to be somewhat scarce in the middle of towns and cities though.

How do you think villages started?

the_flying_pig

other than in perhaps a few very cheap areas land [with planning permission] is by far the biggest component of the total cost.

e.g. how much of the £1.6m price difference between these two similar-sized newbuild houses do you think can be explained away by differences in quality of building materials etc?

http://www.rightmove.co.uk/property-for-sale/new-homes/property-28677910.html

http://www.rightmove.co.uk/property-for-sale/new-homes/property-32546936.html

PasturesNew

abaxas wrote: »

How do you think villages started?

99.999% of the time well before PP was needed.

abaxas

PasturesNew wrote: »

99.999% of the time well before PP was needed.

Exactly.

PP is the driver of house prices as, by definition, it is protectionism.

kabayiri

I'd suggest that build costs are currently a moving target, and those costs are coming down in my area.

I'm about to start a largeish extension (25 sq m). I had quotes last year for the finished build (10 months ago) and requotes recently.

The prices offered now were between 18% and 26% less.

In addition, a build manager has offered to manage the build as a different approach. His argument for saving me money is based on labour rates being almost half of what they were 3 years ago.

If this pattern is true elsewhere, I'd say material costs are up slightly and labour costs down noticeably.