How to Budget for a Home Renovation in the UK

Planning a home renovation is exciting, but the money side can quickly feel confusing. You might have a rough figure in mind, then discover design fees, surveys, consents, trades, materials, and a whole list of “extras” you didn’t think about at the start. That’s often where budgets start to slip. A clear renovation budget helps you decide what’s realistic, where to spend more, and where you can cut back without hurting the final result. 

Let’s share simple, practical advice on setting a realistic renovation budget in the UK, including how to account for hidden costs and why a contingency fund is so important.

How to set a realistic renovation budget in the UK

A good renovation budget doesn’t start with guessing a number. It begins with understanding what you want, what things usually cost, and where money can easily creep up on you.

1. Start with your goals, not just a random figure

Before you think about pounds and prices, get clear on what you want your renovation to achieve. It helps you feel more confident about setting a realistic budget.

• Do you want more space (an extension or loft conversion), or mainly better finishes (new kitchen, bathroom, flooring)?
• Is this for comfort now, to add resale value, or both?
• Which areas are “must-do” and which are “nice-to-have”?

When you know your priorities, it’s much easier to focus your budget on what really matters and drop things that don’t move the needle.

2. Research rough cost ranges early

Instead of guessing, look up typical cost ranges for the type of work you want (e.g., per m² for extensions, ballpark figures for kitchens/bathrooms). You can:

• Check trusted UK building and renovation guides.
• Ask renovation specialists or builders for ballpark estimates.
• Compare different levels of finish (basic, mid-range, high-end).

You don’t need a perfect quote yet, but a rough range helps you see if your ideas match what you can realistically afford.

3. Break your budget into clear parts

A single lump sum makes it hard to see where money is going. Split your budget into simple sections such as:

• Design and planning: drawings, surveys, structural engineer, planning applications.
• Permissions and approvals: planning fees (if needed), building control fees, and inspections.
• Construction and labour: builders, plasterers, electricians, plumbers, carpenters, decorators.
• Materials and finishes: kitchens, bathrooms, flooring, tiles, windows, doors, paint, lighting.
• Other costs: skip hire, scaffolding, site security, waste disposal, and cleaning.

This breakdown makes it easier to adjust different parts if you need to save or spend more.

4. Be honest about your finish level

Your choice of finishes has a huge impact on cost. For each area, decide whether you’re aiming for:

• Basic: simple, durable options, standard fittings.
• Mid-range: a balance of quality and cost, with a few upgrades.
• High-end: premium materials, designer brands, custom details.

You can mix levels in one project, for example, mid-range overall but a higher-end worktop and shower. It lets you control costs without feeling like you’re cutting corners everywhere.

5. Plan for hidden and often-forgotten costs

Many budgets go off track because of items people don’t think about at the start. In the UK, common hidden or underestimated costs include:

• Structural surprises: rotten joists, old wiring, outdated plumbing, and hidden damp.
• Upgrades to services: new consumer unit (fuse board), extra radiators, heating changes.
• Professional fees: extra engineer calculations, party wall surveyors, additional drawings.
• Access and scaffolding: tricky sites, full scaffolds, or protective coverings.
• Living costs during the build: short-term rental, storage units, and eating out more if the kitchen is out of action.

Writing these down in your budget (even as rough estimates) helps avoid shocks later.

6. Always include a contingency fund

No renovation goes exactly to plan. That’s why a contingency fund is essential, not optional. A common guide is:

• 10–15% of your total budget for most home improvements.
• Towards the higher end, if you have an older property or are doing major structural changes.

This contingency is there for:

• Unexpected problems are discovered once walls and floors are opened up.
• Price increases or delays on materials.
• Small design changes you decide you really want mid-project.

If you don’t need all of it, great, but if you do, it’s already allowed for.

7. Decide where to save and where to invest

A smart renovation budget is not about choosing the cheapest option everywhere. It’s about spending money where it counts and saving where it matters less. For example:

• Invest in good-quality windows, insulation, heating, and bathrooms – things that affect comfort and value.
• Save on easily changed items like paint colours, some light fittings, or decorative pieces.
• Choose durable, mid-range flooring in high-traffic areas rather than very cheap options that wear out quickly.

The approach gives you a solid, long-lasting result without overspending.

Plan your renovation budget with confidence

At Refresh Renovations UK, we build budgeting into the process from day one. We help you clarify what you want to achieve, outline likely costs in simple language, allow for contingencies, and keep you updated as the project progresses. We aim to deliver a renovation that looks great, works for your lifestyle, and stays as close to your agreed budget as possible.

If you’re thinking about renovating and want clear, practical support with your UK renovation budget, get in touch with Refresh. We’ll help you turn your ideas into a well-planned project with numbers that make sense.