What Does the Cost Per Square Metre Really Get You? Unpacking Luxury Home Costs
The cost per square metre has become a familiar benchmark in luxury residential design. It’s often quoted as the going rate for high-end homes in London and the Home Counties — a neat shorthand that suggests certainty. But in truth, this figure only tells part of the story. For anyone embarking on a major build or renovation, the real question isn’t just what £x per square metre means, but what it actually includes — and what it leaves out.
At HollandGreen, we believe that being transparent about costs is as important as design itself. Setting a realistic budget from the very beginning not only prevents unwelcome surprises later, it also gives clients the clarity to make informed decisions at every stage. That’s why it’s vital to look beyond the headline rate and understand the bigger picture of what those figures really represent.
When £x per square metre is quoted, it typically refers only to the direct construction cost. This figure covers labour and materials — the bricks, mortar, glazing, finishes, and structural works required to physically build the property. However, this is only the starting point. The true project cost is £x+, once you factor in the wider team of consultants, professional fees, planning, design, management, and other associated expenses.
Running a site also brings substantial additional costs. Scaffolding, temporary works, site offices, insurance, and health and safety compliance are essential but often overlooked. Contractors will also apply overheads and profit — standard industry practice that adds further to the budget.
Professional fees form a vital part of the total. Architects, interior designers, landscape designers, engineers, planning consultants and project managers bring cohesion, oversight and expertise that safeguard against costly mistakes. Then there are the common exclusions: furniture, fittings, equipment, landscaping and VAT. These are rarely included in a headline per-square-metre rate, yet have a huge influence on the finished home and how it is lived in.
Where Investment Matters Most
While it is important to see the full scope of costs, it is equally crucial to recognise where investment delivers the greatest impact. One of the most effective uses of budget is in design fees at the earliest stages. Spending on architectural, interior and landscape design from the beginning reduces risk, prevents costly rework and ensures every decision contributes to the overall vision. A carefully designed layout can save significant sums later by avoiding inefficient structures or layouts that don’t function in daily life.
Money spent on finishes and details that are experienced every day often delivers a higher return in value and satisfaction than investing heavily in areas that will rarely be seen. The feel of natural stone beneath your feet, the craftsmanship of joinery, or the way light is managed through glazing has a lasting impact. Equally, investing in landscaping as an integral part of the project transforms how a house connects to its setting. As our Director of Landscape Design, Mark, explains, “When the garden is considered from the outset it becomes part of the architecture, not a bolt-on at the end.”
Behind the scenes, investments in mechanical and energy systems also pay dividends. Renewable technologies, efficient heating and cooling, and well-planned infrastructure reduce running costs and increase sustainability, often becoming invisible advantages that underpin the long-term value of the home.
The Importance of Transparency
At HollandGreen, we bring architecture, interiors, landscapes and project management together as one team. This integration allows us to prepare holistic, bespoke budgets tailored to your project needs.
From the outset, we account for every deliverable and structure our fees on a time-per-task basis. Unlike most design practices that charge a percentage of the build cost, our approach reflects the specific work required for each project. Additional services can be included as needed, but our core fee structure ensures clarity, fairness, and confidence for our clients.
This transparency transforms the client experience. Instead of feeling blindsided when new costs appear during construction, clients have a clear roadmap from day one. They understand the implications of each decision, can prioritise where to spend and where to save, and feel in control of the process. As Freddie, our Head of Project Management and Process, says, “If a client understands their budget fully from the start, they can focus on the design and actually enjoy the journey.”
The Real Value of £x Per Square Metre
Ultimately, the square metre rate should be seen as a guide, not a fixed truth.
By taking a transparent, whole-project approach to budgeting, we give our clients confidence and control. The result is not just a home that meets a financial plan, but one that delivers on their lifestyle and aspirations.
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