Looking to start your new build project in Birmingham? Before you begin, we recommend establishing what you need with this official new build guide
Birmingham has become a hotspot for property developers, with lower average costs and high rental yields. So, whether you’ve always dreamed of building your own home or are looking to make the maximum off the land you recently acquired, a new build project in Birmingham might provide you with the ideal solution.
But before you start the process, there are some vital considerations to ensure your investment is on budget and on time. Read on to discover what you need to start a successful and exciting new build project in Birmingham without the stress.
New building projects in Birmingham
With billions of pounds of investment in the city and surrounding boroughs, Birmingham has witnessed something of a property boom in recent years. The demand for property in the West Midlands continues to rise, with investors realising a potential for affordability and future economic growth.
As most UK cities experience a reduction in property prices, Birmingham expects an average 24% rise over the next three years.
So, if you’re thinking of a new build project in Birmingham, there’s no time like the present to make a move.
Before getting carried away with visions of the ideal property design, you should figure out what you can afford. From industry experience, we believe the best way to get your budget in order is to establish a thorough cost plan.
1. Realise your budget
When cost planning for your new build, you should consider initial and elemental appraisals and approximate cost plans before pre-tender estimates, contract sums and final accounts.
These cost estimates are crucial to keep clarity with your new build project throughout the process.
Before and after your new home build begins, there are various expenses to evaluate. It helps to divide these costs into two categories:
Capital costs
- Land or property acquisition
- Commissions
- Statutory fees
- Consultant fees (Development)
- Materials and equipment
- Labour
- Fixtures and fittings
- Project insurance, inflation, taxation, and financing
- Internal costs (Development)
Operational costs
- Wages
- Utilities
- Maintenance and repairs
- Rent
- Sales
- General and administrative expenses
Capital costs are associated with one-off expenditures, while operational costs consist of day-to-day expenses during construction. You must keep a handle on both sides to make sure your financing remains secure and funding can withstand the entire new build process.
2. Land acquisition
To help realise the extent of your budget, we also must determine the amount you spend on the acquisition and procession of land.
The price for a plot of land depends on a few factors, including:
- Size and form
- Location
- Accessibility
- Proximity to infrastructure
- Transport links
As the buyer, it’s essential to survey the area to identify any potential risks or concerns that impede your construction or damage the value of a property in the future.
The value of your Birmingham new build project in correlation to the land goes between the current “existing use value” and the “hope value” of what the land will be worth after gaining permission for development.
Land with planning permission granted naturally has a higher value but buying land without planning permission for cheaper comes with the risk of the failure to secure planning permission.
3. Select a Birmingham specialist in new build development and design
To acquire a clear understanding of your property blueprint with an in-depth scope of work, we recommend you hire an architect and interior designer. It helps to choose one that can accommodate all aspects of the construction and design.
For example, some architects may only specialise in floor plans or permits, while other building designers may not have experience in licencing or structural work. To keep costs low and operations cohesive, hire a specialist designer who can handle all aspects of design and development.
Having one person helping your design and build from beginning to end can make a real difference in maintaining consistency and coherence throughout your new build project in Birmingham.
4. Know your limits
We understand part of having a new build project is being as involved as possible, which is another effective way to cut costs. However, you should own an honest assessment of your skills on what you can tackle and what’s better left to the professionals.
Building multiple properties is a full-time job. While you might feel like you have the time to manage it yourself, if you have bills to pay and mouths to feed, it can become a significant strain mentally and physically.
We encourage ambition and involvement, but all we ask is to be realistic about your skillset and time scale. After all, you should try to enjoy the new build experience and avoid developing any resentment toward the project.
5. Prepare for the unexpected
It only takes watching a few episodes of Grand Designs to realise new build projects don’t always go to plan. You can plan precisely and consider all the variables. But sometimes, all it takes is for bad weather or unprecedented geo-political issues to arise that can alter the course of your new build project.
So, while enjoying the flexibility and creative freedom of building a property from scratch tailored to your desires, on the other side is the opportunity for unknown complications.
The moral of the story? Always have extra funds and a plan in place in case of an emergency.
Hire a specialist to assist you with your Birmingham-based new build project
At Vivante Homes, we offer a forward-thinking, contemporary solution to new build projects across Birmingham. With three decades of experience among our senior team members, we’ve worked on several high-profile and highly profitable housing developments across the West Midlands.
We have experience across design and build, land acquisition, and development funding to ensure your new build project stays within budget and is delivered on time.
Get in touch today for a free quote.
