Building versus buying

The Northwood office of property agent Savills are currently marketing two potential building plots in Copsewood Way, a popular residential road in a desirable location. Roger Pollard, head of Savills Northwood office, discusses the advantages and debates the pitfalls of building your own home.

“Firstly and, perhaps most importantly, the end product is likely to be exactly what you want out of a property” he says. “In terms of layout, design and décor, individuals do not have to endure someone else’s tastes.”

He continues: “An additional bonus is the saving you can make, in terms of VAT exemptions. For example, there will be no VAT to pay on labour costs nor on materials if the builder or contractor purchases them. If, however, you as the owner purchase the property materials, VAT will have to be paid at the time of purchase but can be reclaimed, although only once. So if several purchases have been made, reclaiming VAT must be done at the same time once the habitation certificate has been received and, it must be done within 90 days of receiving the habitation certificate.”

“Other benefits can include the ability to add value to the end product, although this will be very much dependent on the design and specification of the build.”

So what, if any, are the pitfalls?

Pollard again, “Living with builders! It seems that no matter how well planned or prepared a project is, costs are underestimated. Often, things happen within a building project which are completely unforeseen and have not, therefore, been taken into consideration during the planning stages. Given the current financial situation with money becoming less available, there is a real danger that the money will run out before the project is complete.”

“If a project over runs, there are obvious financial implications – labour, mortgage payments etc. Whilst this is sometimes unavoidable, the best way to plan is to enlist the advice from experts in finance, architecture and building and so try to alleviate any of the pitfalls.”

For more information, visit Savills.co.uk.