How Much Does It Cost to Build a New House in 2026?
If you’re planning a new build in London or Surrey, the honest answer is: it depends enormously on where you’re building. We get asked this question almost every week, and the truth is that a new build in Zone 1 and a new build in the Surrey Hills are two completely different financial conversations, even though both fall under “new build” in a Google search.
At Excel Construction, we’ve completed over 60 new build houses and flats in the last three years across Central London, South London and Surrey, so these aren’t figures pulled from a national spreadsheet — they’re what our own projects have actually cost.
Cost Per Square Metre, Broken Down by Area
The single biggest driver of new build cost is location, and the difference between our three core areas is significant.
Central London
Expect to pay from around £3,500 up to £5,000+ per square metre. Land is scarce, sites are often tight and awkward to access, and planning departments in central boroughs apply far more scrutiny — particularly around conservation areas and neighbouring properties. Scaffolding, skip permits and parking suspensions also cost noticeably more here than anywhere else on this list.
South London
A more workable £2,400 to £3,200 per square metre for a standard specification family home. Boroughs like Croydon, Bromley, Sutton and Wandsworth still carry London labour rates, but sites are generally easier to access and plots are a little more forgiving on size and setback rules.
Surrey
Typically £2,200 to £3,000 per square metre, though this swings more than the other two areas depending on the specific location. Surrey new builds are often larger, sit on bigger plots, and are more likely to involve self-build clients who want a bespoke architect-designed home rather than a standard layout — which pushes some projects to the top of that range or beyond.
A typical 150m² family home, then, might cost anywhere from £330,000 in South London or Surrey to £600,000+ if it’s a Central London plot.
What Actually Drives the Price Difference
It isn’t just “London is expensive.” Three things specifically separate these three areas:
- Land and site access. Central London sites are frequently infill plots between existing buildings, which means smaller deliveries, more frequent skip changes, and sometimes hand-digging where a machine can’t fit.
- Planning complexity. Central boroughs and parts of Surrey (particularly conservation areas and Green Belt land) apply much stricter design scrutiny than outer South London boroughs.
- Specification expectations. Central London new builds are more often finished to a high-end spec by default. Surrey self-builds vary the most, since the client is usually designing to their own brief rather than a developer template.
What’s Actually Included in the Budget
A build-cost-per-square-metre figure only covers construction. A realistic new build budget also needs to account for:
- Land (if you don’t already own the plot) — the largest and most variable cost of all
- Planning application fees — a few hundred pounds for the application itself, but architect and drawing fees typically run 7–12% of the build cost
- Professional fees — structural engineer, Building Control, and a Party Wall surveyor if you’re building near a boundary
- Utility connections — water, electricity, and often a new mains gas or heat pump connection
- VAT — genuinely new, self-contained dwellings are usually zero-rated for construction costs, though professional fees still attract VAT, so it’s worth getting this confirmed early with your accountant
Do You Need Planning Permission?
Almost always, yes. Unlike an extension or a loft conversion, which can sometimes fall under permitted development, a brand new dwelling requires a full planning application in nearly every case. This means:
- A formal application to the local council (typically £578+ depending on the site)
- Architectural drawings and, often, a design and access statement
- Possible additional reports — ecology, flood risk, or heritage, depending on the site
- A decision period of roughly 8–13 weeks, though it can run longer if the application is called in for committee review
This is exactly where working with a team that already knows the local planning departments makes a real difference. We manage this process in-house for every new build we take on, rather than leaving clients to coordinate consultants themselves.
How Long Does a New Build Actually Take?
For a standard 3-bedroom family home, expect 8–12 months on site from groundworks to completion, once planning is secured. Larger or higher-spec homes, especially bespoke Surrey self-builds, can run 12 months or more. Because we manage every trade in-house rather than subcontracting, our own build programme tends to sit at the shorter end of that range — a big part of how we’ve been able to complete over 60 homes in three years.
Getting an Accurate Quote
Every number in this guide is a starting point, not a quote. The real cost of your project depends on your plot, your desired specification, and the specific planning constraints of your site. The only reliable way to get an accurate figure is a proper site visit and survey.
If you’re also weighing up whether a new build makes more sense than extending your current home, it’s worth reading our guide on house extension costs in South London for a direct comparison.
Frequently Asked Questions
Is it cheaper to build a new house than buy one in London?
Often, yes, once you account for stamp duty and the ability to build exactly what you need rather than compromise on an existing layout — though land cost is the variable that decides this either way.
Do I need an architect for a new build?
In almost all cases, yes. Full planning applications for new dwellings require detailed drawings that go well beyond what’s needed for an extension.
Can I build a new house on Green Belt land in Surrey?
Generally very difficult, and heavily restricted by national planning policy. It’s always worth a pre-application enquiry with the local council before committing to a Green Belt site.
How much does a new build add in value compared to its cost?
This varies by area, but a well-designed new build in South London or Surrey typically returns strong value uplift compared to the land-plus-build cost, particularly where the finished home is larger than what existed before.
Ready to talk about your project? Our in-house team has delivered new builds across Central London, South London and Surrey — get in touch for a free, no-obligation site visit.
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