New Build Cost in London (2026)

New Build Cost in London: a 120 m² detached new-build home to a standard specification in London costs around £401,000–£611,000 (new build, VAT zero-rated), or about £4,075 per m². These are 2026 benchmark figures for planning your budget — your exact cost depends on finish, site conditions, access and structural work.

Typical cost range in London

£401,000 to £611,000 (VAT zero-rated), around £4,075 per m². Based on a 120 m² detached new-build home to a standard specification. Figures last reviewed Q3 2026.

What's included

  • Preliminaries: £20,988 (4.3% of typical cost)
  • Demolition / strip out: £8,669 (1.8% of typical cost)
  • Groundworks: £34,676 (7.1% of typical cost)
  • Substructure: £43,345 (8.9% of typical cost)
  • Superstructure: £95,359 (19.5% of typical cost)
  • Roofing: £34,676 (7.1% of typical cost)
  • Windows and doors: £34,676 (7.1% of typical cost)
  • M&E: £60,683 (12.4% of typical cost)
  • Internal finishes: £60,683 (12.4% of typical cost)
  • External works: £26,007 (5.3% of typical cost)
  • Contingency: £33,581 (6.9% of typical cost)
  • Professional fees: £35,680 (7.3% of typical cost)

Get a tailored figure with the free UK construction cost estimator.

Frequently asked questions

How much does a new-build home cost in London?

In London, a 120 m² detached new-build home to a standard specification typically costs £401,000–£611,000 (VAT not normally chargeable on this type of work), which works out at roughly £4,075 per m². The final figure depends on the finish you choose, ground and site conditions, access, and how much structural work is involved.

Why is a new-build home more expensive in London than the UK average?

Build Hub applies a regional cost multiplier for London that reflects local labour rates, material logistics and demand. Prices in higher-cost regions such as London and the South East run well above the national average, while much of the North, Wales and Scotland sits below it.

What does this new-build home estimate include?

The range covers construction works, a main-contractor margin, a contingency allowance and professional fees. It excludes VAT where shown separately, plus fittings, fees and surveys listed in the exclusions. It is a planning-stage benchmark, not a fixed quotation.

Is a new-build home VAT-free?

New-build dwellings are generally zero-rated for VAT in the UK, so this estimate is shown without VAT. Your contractor will confirm the VAT treatment for your specific scheme.

Do I need planning permission for a new-build home in London?

Many smaller projects fall under permitted development, but limits vary by property type, location and whether you're in a conservation area. Use Build Hub's free planning guidance to check your specific address before you budget.

How can I get a more accurate new-build home quote?

Run your own numbers with Build Hub's free cost estimator — it adjusts for your exact postcode, size, finish, access and site conditions in seconds, with no account required. You can then invite vetted local contractors to tender.

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