Undertaking a homebuilding or renovating project gives you the opportunity to create a home built to your chosen design and specification in the location of your choice, at a cost that is likely to be considerably less than the market value of the completed project.

Each year around 15,000 new one-off homes are built by private individuals, and a further 3-5,000 are created through the change of use of an existing building, e.g. a barn or school conversion. All of these projects are treated by HM Customs & Excise as new dwellings and, as such, the building work involved is largely free of VAT (see section on VAT and Self-build).

In addition to these 'self-builders', there are thousands more who undertake a renovation project: modernising, extending, or remodelling an existing house to create an individual home. There are no official figures for these projects, but estimates suggest that there are around 20-30,000 major renovations every year, with tens of thousands more undertaking smaller extension or remodelling schemes. Work to existing houses is almost always subject to VAT at the standard rate, unless they are listed or have been empty for three or more years (see section on VAT.)

The external design of a new house or renovation project will be controlled to a greater or lesser degree by local planning policies (see section on Planning Permission) - however, this still leaves considerable scope to create a unique house.

Providing you choose the right plot in the right location, you can build in almost any style you choose, from a cutting edge contemporary style property in glass and steel, to a traditional cottage. (For archive H&R case studies visit www.homebuilding.co.uk.)

Even where planning controls place limitations on the external appearance of a development, the internal layout can be configured in almost any way you choose, constrained only by the statutory Building Regulations and the limits of available materials. You can create a floorplan with any number, size, shape and interrelationship of rooms you desire, arranged to suit the individual living requirements of your household. You can also choose to create inspirational living spaces with features such as double height rooms, galleries and vaulted ceilings.

Freedom of design also extends to the selection of all of the fixtures and fittings throughout the house, so from the outset you can choose the right flooring, doors, windows, staircase, kitchen, bathrooms, showers, fireplaces and lighting. You can incorporate at first fix stage other modern features such as underfloor heating, air conditioning, smart house technology and modern plumbing, as well as choose the specification of the construction itself to create a home that is designed to be, for example, highly energy efficient.

Very few self-builders or renovators spend more on their new home than it is worth when completed. Self-build and conversion is generally more cost effective than renovation, as it is largely free of VAT. Average savings are 15-25% when comparing the market value of a completed property with total development costs. This saving reflects the effort and risk involved in undertaking the development, and the time and resources invested. Self-builders are effectively buying their property at cost price, i.e. the net cost of land, labour and materials. How much is saved depends on the quality of design (i.e. building the optimum house for the plot), and the efficiency of the build process.

Effective project management is the key to delivering the finished house on time and on budget. Project management services are offered by architects, surveyors and professional project managers. Fees for managing the build will typically range from 3-10%. If you choose to use a project manager, their track record is everything, so speak to several of their previous clients.

If you are using an experienced contractor who is on site every day, you may decide that you do not require a project manager, but will oversee the work yourself instead. This works for many.

Other self-builders choose to take on the role of both project manager and contractor themselves, hiring individual tradespeople (see section on Build Routes). Project management is not a task to be taken on lightly, but can result in significant savings if carried out efficiently.

Hiring an experienced designer with a good track record in one-off housebuilding is essential, both in terms of ensuring the house is appropriate for the site, and that it can be built cost effectively. Design has two main stages: Concept/Planning and Detailed Design. Some designers also offer project management services (see below).

Experienced house designers will include chartered architects, architectural technologists, surveyors and engineers, and also partly- or non-qualified house designers. Experience and flair are just as important as qualifications when it comes to house design, so make sure that you meet several designers, visit their projects

and talk to their clients before making any decisions. You can find an architect via the RIBA Client Advisory service; 0207 580 5533. Be aware that designers may have different strengths in different areas and that you do not necessarily have to use the same designer for all of the work.