How much does a London
new build cost in 2026?
The honest number.

Typical 2026 London ranges (inc. design, planning, build, contingency & VAT): infill plots £450k–£1.2m; replacement dwellings £600k–£1.5m; garden/backland plots £550k–£1.4m; large new builds £900k–£2.5m; multi-unit £1.2m–£4.5m+. Per m² costs typically £3,000–£5,000 turnkey, with the Zone 1 / prime central postcodes at the upper end.

Always full planning permission — there is no permitted development route for an entirely new dwelling. Most projects start with a Pre-Application (£500–£2,500 fee depending on council) to test feasibility before submitting a full application. Conservation areas, Article 4 directions and listed-building proximity add scrutiny. Expect 6–12 months from first sketch to planning consent.

Allow 6–12 months for design and planning, then 12–18 months on site for a single dwelling, 18–24 months for a large new build, and 24–36 months for multi-unit. The build programme is written into our contract as fixed — late completion is our problem, not yours, with liquidated damages clauses for major delays.

Community Infrastructure Levy — a per-square-metre charge most London boroughs apply to new dwellings. Rates vary £20–£500/m² depending on borough and zone. On a 250m² new house in SW6 expect roughly £60k–£100k in CIL. Some councils also apply Section 106 agreements for affordable housing or local infrastructure on larger schemes.

On a new build, yes — there's no existing home to live in during construction. Most clients rent locally for 14–24 months. We help with the rental search and align the build programme with break clauses so you're not paying double rent at the end.

Long-term, yes for most clients — full Passivhaus adds 8–15% to build cost but reduces energy bills by 80–90% and adds 10–20% to resale value in prime London postcodes. We've delivered Passivhaus, EnerPHit and AECB-spec new builds. The premium pays back fastest in well-insulated, mechanically ventilated homes with heat pumps.

Every 2VP new build comes with an insurance-backed HomePro warranty covering structural defects for 10 years from practical completion. If the company ceased trading, an independent insurer would cover repair costs. The warranty satisfies mortgage lender requirements (we can also arrange Premier Guarantee or LABC where the lender specifies).

Yes — design-and-planning is a separately costed stage (typically 6–9% of the total build cost). You can stop after planning consent and tender the build separately, but most clients proceed with us under one fixed-price design-and-build contract. Design fees are credited against the build cost if you proceed.