If you are thinking about building rather than buying then a prefabricated or modular home can be a nice option for you. But you would be wondering what it would cost you to build a prefab house in the UK? Well it’s not a straightforward answer as it depends on various factors like size, materials, site conditions, design and a few other things. This article will help you get an idea of how much you would need to spend on your dream house as per your designs, specs and requirements.
What Actually Is A Prefab Home?
When we use the term, prefabricated homes, it refers to the construction practice where the main structure of the house is built off-site usually in a factory, then shipped to the location and assembled and completed on the site. The material used to build such home depends on the clients requirement and it usually includes timber frame panels, modular units and flat-pack panels etc. The main benefits of getting a prefabricated home built is that because it is made in a factory, there is lesser build time, less waste of materials used and more quality control.
Estimated Cost Ranges in the UK
Following are some of the recent figures from our vetted builders which will give you an idea of overall costs of constructing these houses.
- According to estimates from our prefab specialists, the typical cost to build a timer frame home in 2025 will range anywhere from £1,500 to £2,800 per square metre depending on your requirements.
- A basic prefab home will cost you around £1,500 to £2,500 per m² and if you are looking for a premium build that is customised to your needs using high-end materials, the cost can easily exceed £3,000 per m².
- It’s safe to say that a prefab home with installation might cost between £85,500 and £385,000 range as it all comes down to size, quality and manufacturer.
- usually a prefab home will cost you 10-20% less than a traditionally built house of the same size and quality but these savings don’t include any other extra site-related costs.
Example: Lets say you are planning on building a 100 m² home, a rough ballpark figure would be around £150,000-£300,000 depending on your provided specs. This example does not include any other costs like land, on-site works, planning and finishing as these all vary customer to customer.
Things To Consider While Calculating The Costs
Size and Specs
It’s a no head-scratcher that the larger the house means the more costly it will be for you but specs do matter as well when going into cost calculations. If you are choosing premium materials, bespoke designs and high-end finishing then the costs can get up to £3,000 or more per m².
Materials and Build Method
As explained earlier, the type of prefab home material and finishing will decide what the actual costs would be for you. So if you are choosing a timber-frame panel over a customised modular home, it will automatically cost you lots less.
Site Prep And Location
When calculating the costs, you should consider elements like site preparation, groundwork and location of construction too. If you have the site that is steep and needs more groundwork or is at a remote location, the costs of preparing the ground and transport of modular units to the site will rise significantly.
Planning And Design Changes
If you choose to get a more customised design for you prefab home, that will significantly rise the costs for you as you won’t be able to benefit from the construction company’s standard production savings. While choosing the designs, if you tried to make significant changes in the standard designs, that will obviously increase costs for you.
Time Frame And Labour Costs
One of the main benefits of choosing to get a prefab home built is that these are built in about 30-50% shorter times than the typical builds. This time save will automatically reflect in reduction of costs of labour and other relevant matters.
Real-World Examples of Prefab Home Costs
Here are a few scenarios to show you exactly what to factor in when calculating the actual costs.
Scenario A: Basic prefab home
Let’s say you have an area of 80 m² and you want to build a standard prefab home as per the standard specifications then the cost for each square meter will be around £1,600. That will make a total of £128,000 for the build and if you factor in other aspects like land, groundwork and planning etc. then you might be looking at a range of £150k-£180k in total.
Scenario B: Mid-quality prefab home
Let’s say you have an area of 120 m² and you choose to get the build done with better materials, more glazing and slightly more bespoke. Cost will be around £2,000 per m² that will translate to £240,000. With extras including driveway, landscaping and higher quality finishing, you might end up with a cost of around £260-£300k+.
Scenario C: Premium prefab home
Say you want a large home with an area of 160 m² or more and you want to get the build done with high-end materials, bespoke design and premium finishes. If cost is £3,000 per m² the total cost for the built alone would be £480,000. With land, site works and extras you are easily looking at the ballbark of half-a-million or more.
Choosing Between Prefab And Traditional Build
The biggest question that everyone looking to get a prefab home ask: Will this building method save me money compared to a traditional build? The answer is yes but it is always not the case. Here are a few things to keep in mind:
- Since prefab home construction reduces labour cost, minimises material waste and speeds up build time, that helps you get a 10-20% cheaper core construction.
- But when you add in land, foundations, utilities, transportation of modules and everything else included, the costs rise significantly. So structural build cost may be lower but many other costs still apply.
- If you are specifically interested in a prefab solution just because of costs then you might want to recalculate the costs as it may end up to be the same as a traditional build. But if you are looking for a bespoke and modern prefab home and budget is not an issue and you want things done quickly then prefab is the right choice for you.
So prefab is best seen as a building method that can save time and some money, but you still need to factor in all the variables that will go into the final costs.
Is Prefab A Right Choice For You?
Here are a few questions that you should ask yourself before making a judgement if prefab home is the right choice for you or not:
- Do you have a decent and well-accessed plot with proper planning?
- Is a standard house form well enough for you or are you looking for a bespoke design solution and if you choose the latter, you should be ready to pay more.
- How important is the home build time-frame to you? If you want to build and move in quickly then prefab is definitely for you.
- What’s your home finish budget? If you intend to get high-end finishes, you will not get the better cost advantage vs traditional build.
- Have you done your homework on the manufacturer or supplier that want to use?
- Are you aware of site-specific costs other than the actual build itself? These can sometimes increase the cost significantly.
- Are you aware of financing or mortgage situation? Check with your lender if they allow this construction method.
Final Advice
If you ask me for the advice, I would say that you should pick your prefab construction specialist carefully, get a complete quote on pricing and what is included (shell, finish, services). Make sure to budget generously for the extra costs for groundwork, services and access and don’t underestimate the finishes and design choices as these are the ones that will affect the costs the most.