Making home renovations such as a new kitchen, home office or loft conversion can seem like a good idea to increase living space and quality of life. But for Britons looking to expand their existing homes, there are a number of precautions to take to avoid overspending and finding yourself out of pocket. We list a number of ways to stay on top of your finances when making home renovations.
Set a Realistic Budget Based on Average Costs
Statistics reveal that, on average, home renovations in the UK can cost between £15,000 to £30,000 (Source: MT Finance) depending on the scale and complexity of the project. Setting a realistic budget is crucial, with experts recommending allocating around 5-10% for design fees and 10-15% for contingency expenses that you do not expect, such as clearing rubbish, electricals, damp, flooding and more.
Prioritize Essential Repairs
According to a survey by the National Custom and Self Build Association, structural repairs and maintenance constitute a significant portion of renovation costs. Prioritize these essential repairs to ensure the longevity and safety of your property, preventing overspending on cosmetic enhancements.
You may find that some things can be multiple functional. You may not necessarily need a separate room for a gym and a home office, when these can be combined. Consider whether your dining room can double up as an office or a spare bedroom can be used for everyday living, rather than when Gran comes once every few years.
Research and Compare Prices for Materials
Recent studies indicate that the cost of construction materials in the UK has seen a gradual increase. To mitigate expenses, invest time in researching and comparing prices. Statistics reveal that diligent price comparison can lead to savings of up to 20% on materials.
Get Multiple Quotes from Contractors
The Federation of Master Builders reports that obtaining multiple quotes from contractors can result in cost savings of around 20%. Comparing quotes allows you to identify competitive pricing while ensuring the contractors meet industry standards.
Consider DIY for Small Projects
According to a survey by Rated People, 62% of UK homeowners prefer to take on smaller renovation tasks themselves to cut costs. DIY efforts for tasks like painting or installing fixtures can significantly reduce labor expenses.
Reuse and Recycle Materials for Sustainability and Savings
The Waste and Resources Action Programme (WRAP) highlights the environmental benefits of reusing materials. By salvaging and refurbishing items, you not only contribute to sustainability but also cut down on costs, aligning with the UK’s push for greener construction practices.
Opt for Energy-Efficient Solutions
Statistics from the Energy Saving Trust reveal that investing in energy-efficient solutions can lead to long-term savings of up to £600 per year on utility bills. While the initial costs may be higher, these upgrades often qualify for government incentives, further offsetting expenses.
Regularly Communicate with Your Contractor for Efficient Spending
According to a survey conducted by Houzz, 71% of UK homeowners who maintained open communication with their contractors reported successful renovations within budget. Regular updates and discussions about expenses can help identify potential issues early, preventing costly setbacks.
