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Costs & Budgeting6 min read

London Extension Cost Breakdown: Where the Budget Goes on a Rear Extension

London homeowners planning a rear extension frequently ask not just what the total cost will be, but where the money goes. Understanding the cost breakdown of a London rear extension — which elements are the most expensive, which are fixed and which are variable, and how professional fees and VAT stack up — helps homeowners budget more accurately, make informed design decisions, and avoid financial surprises during construction. This guide provides a detailed cost breakdown for a typical London two-storey rear extension.

Key Takeaways

  • Preliminaries (scaffold, waste removal, temporary works, site setup): £6,000-£12,000 for a medium London extension — 8-15% of total construction cost.
  • Groundworks and foundations: £10,000-£25,000 — the most variable element. Trees on London Clay may require mini piles (£5,000-£15,000 more than strip foundations).
  • Structure and roof: £25,000-£55,000 — typically 30-35% of total construction cost.
  • Professional fees (architect, engineer, party wall, building control): £12,000-£32,000. VAT: 20% on the full construction contract.
  • Total all-in cost for a quality two-storey London rear extension: £180,000-£320,000 — budget from the top of this range for a high-specification inner London project.

Preliminaries and site establishment costs

Before a single brick is laid on a London extension, a significant proportion of the preliminary costs are incurred: Scaffold: a two-storey rear London extension requires full-height rear elevation scaffolding. Cost: £2,500-£5,000 for erect, 12-16 week hire, and strike. Skip hire and waste removal: demolition, excavation, and construction waste from a London extension generates multiple skip loads. Cost: £150-£300 per skip, typically 4-8 skips for a medium-sized London extension (£600-£2,400). Site welfare: toilet facilities, temporary power, water supply, and site security. Temporary power connection in London: £200-£500. Site insurance (Contractor's All Risks): the principal contractor's CAR insurance typically covers the project — ensure the contractor's policy covers the full contract value. Temporary works: propping and shoring of the existing structure during demolition of the existing rear wall of the property is required where the extension opens into the existing house. Cost: £1,000-£3,000 depending on structural complexity. Total preliminaries and establishment: £6,000-£12,000 for a medium-sized London two-storey rear extension. This is 8-15% of the total construction cost — often overlooked when budgeting from rates per m².

Groundworks, foundations, and drainage

Below-ground works are a significant and sometimes unpredictable element of a London extension cost: Demolition and excavation: breaking up and removing the existing rear ground floor (often a concrete oversite or original Victorian floor), excavation of the extension footprint, and removal of excavated material. Cost: £2,000-£5,000. Strip foundations (new extension): the most common foundation type for London rear extensions on clay sub-soils away from trees. Trench excavation, concrete fill to engineer's specification, formation of the brick foundation walls. Cost: £150-£300 per linear metre of foundation trench. For a typical 5m x 4m London extension (20 linear metres of perimeter foundation): £3,000-£6,000. Pile foundations (where trees are close): mini pile foundations are used in many London rear extensions where large trees are within 5-10m of the new extension on London Clay. Cost: £5,000-£15,000+ for a mini pile and ground beam system (significantly more than strip foundations). Drainage: new drainage to the extension (ground floor slab drainage, new inspection chambers, connection to existing system). Cost: £2,000-£5,000. Floor slab: reinforced concrete ground floor slab (or beam-and-block alternative). Cost: £80-£150 per m². For a 20m² extension: £1,600-£3,000. Total groundworks and below-ground: £10,000-£25,000 for a medium London two-storey extension (depending heavily on foundation type and depth).

Structure, masonry, and roof

The visible structural shell of the London extension: Masonry superstructure (walls): cavity wall construction (inner leaf of thermal blockwork, outer leaf of facing brick to match the existing property, full-fill cavity insulation, wall ties). Cost: £120-£200 per m² of wall area for supply and fix. For a typical London two-storey rear extension (approximately 50m² of wall area): £6,000-£10,000. Steel beams (RSJs): structural steel beams to support the existing property above the new opening and to create the structural frame where required. A two-storey London rear extension typically requires 2-4 steel beams (RSJs or universal beams). Cost: £1,500-£4,000 per beam installed (supply, fabrication, and installation — including temporary propping). Flat roof (single-storey element): GRP flat roof, warm deck specification. Cost: £90-£150 per m². For a 20m² single-storey element: £1,800-£3,000. Pitched roof (two-storey element): new pitched roof structure to match the existing house roof (rafters, ridge, roof tiles to match existing or complementary specification, underfelt, counterbattens, battens). Cost: £100-£180 per m² of roof plan area. Roof tiles (to match existing): additional £40-£80 per m². Rooflights: flat glass rooflights (Velux or Korniche) are a popular addition to London extension flat roofs, bringing natural light into the rear of the property. Cost: £800-£2,500 per rooflight (supply and installation). Total structure and roof: £25,000-£55,000 for a medium London two-storey rear extension.

Mechanical and electrical, insulation, and plastering

First-fix mechanical and electrical (MEP): new electrical circuits from the consumer unit to the extension; new plumbing runs for the kitchen extension (hot and cold supply, waste drainage); any underfloor heating manifold and pipework. Cost: £6,000-£14,000 for a medium London extension first fix (electrics + plumbing). Insulation: floor insulation (PIR rigid board beneath slab or above existing slab in beam-and-block construction); wall cavity insulation (full-fill mineral fibre or PIR); roof/ceiling insulation (PIR board to warm flat roof; mineral fibre between rafters for pitched element). Cost: £2,000-£5,000 for a medium London extension. Plasterboard and plastering: plasterboard to all internal walls and ceilings, skimmed with a finish plaster coat. Cost: £2,000-£6,000 for a medium London extension. Second-fix electrics and plumbing: second-fix electrical (sockets, switches, light fittings, extract fans); second-fix plumbing (kitchen sink, dishwasher connection, washing machine connection). Cost: £3,000-£8,000. Underfloor heating (where specified): wet UFH in the ground floor of the extension is popular — materials and installation (excluding screed): £40-£100 per m². Total MEP, insulation, plasterboard and second fix: £15,000-£35,000 for a medium London two-storey extension.

Finishes, professional fees, and VAT

Finishes (client-variable): the final element of the London extension cost breakdown is the most variable — it depends entirely on the specification chosen by the homeowner. Indicative cost ranges: kitchen supply and installation: £10,000-£60,000+ (budget to bespoke). Floor finishes: £30-£200 per m² supply and fit (LVT, engineered oak, porcelain tile — for a 25m² extension: £750-£5,000). Tiling (kitchen splashback, ceilings, features): £50-£120 per m² supply and fit. Decoration (internal): £2,000-£5,000 for a medium London extension. External windows and glazed doors (bifold, sliding, frameless): bifold doors (3.0m wide, aluminium) supply and installation: £3,000-£8,000. Single french door + sidelight: £1,500-£4,000. Professional fees: architect (design, planning, building control drawings): £8,000-£20,000 for a medium London rear extension project. Structural engineer: £2,000-£6,000. Party wall surveyor (both surveyors' fees): £1,500-£4,000. Principal designer fee (CDM): £1,000-£3,000. Building Control fee: £800-£2,000. VAT: VAT at 20% applies to all construction work on existing dwellings (extensions, alterations, refurbishments). Note: new dwellings are zero-rated. For a £150,000 London extension contract (excl. professional fees): VAT = £30,000. Total professional fees + VAT is often 30-40% on top of the construction contract cost — budget this from the outset. Typical all-in cost for a medium two-storey London rear extension (construction + finishes + fees + VAT): £180,000-£320,000 for a high-quality scheme.

Frequently Asked Questions

How much does a two-storey rear extension cost in London?
Total all-in cost (construction + quality finishes + professional fees + VAT): £180,000-£320,000 for a quality medium-sized two-storey London rear extension (approximately 20-30m² per floor). Construction-only cost (excluding finishes, fees, and VAT): £120,000-£200,000. Costs depend significantly on specification, location within London, and structural complexity.
What are the most expensive parts of a London extension?
Structure and roof (25-35% of construction cost); groundworks and foundations (15-20%); mechanical and electrical (10-15%); finishes are highly variable and can represent 15-30% of the total depending on specification. Professional fees and VAT add 30-40% on top of the construction contract.
How much do professional fees add to a London extension cost?
Architect: £8,000-£20,000; structural engineer: £2,000-£6,000; party wall surveyors: £1,500-£4,000; building control: £800-£2,000. Total professional fees for a medium London extension: £12,000-£32,000. Plus VAT at 20% on the construction contract.
Why does an extension in London cost more than the national average?
London construction costs are 20-35% above the national average. Reasons: higher labour costs across all trades; scaffold logistics and parking restrictions in dense terraced streets; party wall costs and complexity; higher material delivery costs; conservation area specification requirements in many London Boroughs.

Important Note

This guide is for general information only. Building regulations, planning rules, and legal requirements change regularly and vary by local authority. Always seek professional advice specific to your project and location. RCB Design & Build offers free initial consultations — book your free survey.

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