What should I budget?
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Plan my renovation budgetWhat belongs in the total cost of a house renovation?
Guidance reviewed 13 September 2026 · Planning information for homeowners in England
Start with the work you want priced and the information behind each allowance. A single total is difficult to compare if one quote includes protection, professional input and finishes while another leaves them to the owner. This guide helps you prepare a whole-project cost plan before asking for or comparing prices.
The cost-per-square-metre guide remains the starting reference for broad rates. Check the date, specification and exclusions of any rate before using it. This page supplies a budgeting method; it does not present an updated set of market prices or a fixed quotation.
Define the scope before the allowance
Write a room-by-room scope and separate retained, repaired and replaced elements. Include enabling works and making good: moving a bathroom can affect drainage, electrical layouts, floor construction and adjoining finishes. Record assumptions when something has not been measured or investigated.
Use three evidence states: a current written quote for a defined item; an allowance whose basis is recorded; and an unpriced question. Leaving a value blank is more useful than disguising an unknown as zero.
Build the total from separate cost groups
| Cost group | Questions to resolve |
|---|---|
| Construction | Which labour, materials, enabling works, protection and making-good items are included? |
| Design and professional input | Who is appointed, what deliverables are included, and which further visits or revisions may be needed? |
| Investigations and approvals | Which surveys, applications, inspections, party-wall or lease-related items apply? |
| Client purchases | Who orders, receives, stores and installs each item, and who deals with damage or returns? |
| Household and site logistics | Include applicable temporary accommodation, storage, access, welfare and waste arrangements. |
| Uncertainty | Record the specific unresolved issue, allowance basis and what will resolve it. Keep this separate from optional upgrades. |
| Tax | Is the quotation inclusive or exclusive of VAT, and has the actual supply been checked? |
Make the VAT basis explicit
HMRC states that most work on houses and flats is charged at the standard VAT rate, with exceptions subject to conditions. Ask the supplier or tax adviser to confirm the treatment of each relevant supply. Do not assume a listed house, empty property or an energy-related item automatically qualifies for a particular rate. Keep the confirmation with the quotation.
Source: HMRC: VAT for building work.
Compare the same work, then examine the differences
Put quotations beside the same scope revision. Mark what is included, excluded, provisional or unanswered. If one total is lower, ask which quantities, products, responsibilities or programme assumptions explain the difference. Do not add a guessed amount to make two quotes look comparable.
A useful clarification is specific: “Does your bathroom allowance include substrate preparation, the specified waterproofing system, extraction and making good outside the room?” Ask for the revised scope or price in writing and retain the earlier version for the record.
Keep forecast, commitments and changes separate
Your budget ceiling is a decision limit; the forecast is the current expected total. Track orders and instructed work as commitments, with payments shown separately. A paid deposit is not the same as a completed work item.
Tie contingency to identified uncertainty and review it as investigations and quotations improve. When a change is proposed, record the reason, cost and time effect, approvals and any knock-on work before it is instructed through the contract. A finish upgrade and an unforeseen repair should remain distinguishable.
Before the next commitment, check whether the forecast still fits the ceiling and whether the relevant cash-flow date is affordable. Discuss scope or phasing changes while options remain available.
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