Every so often, I speak to someone who’s been through a renovation before and is now planning a new project. They’ve done it once, maybe twice, and feel pretty confident about what’s involved – especially when it comes to setting a budget. They are aware that prices have gone up in recent years and anticipate paying more this time around. But when the quotes come back, they’re completely caught off guard. What they thought was a reasonable budget doesn’t come close to covering the work. And the questions start: Did I get the spec wrong? Did I miss something? Or have costs really changed that much? The answer is: a bit of all three.
A common challenge I see with many homeowners is that they’re planning their next project using assumptions based on previous experience. And that’s completely understandable. If you’ve done work before, it makes sense to use that as a reference point.
But even renovations completed just a few years ago happened in a very different construction environment. Since then, we’ve seen sharp increases in labour and material costs, ongoing supply chain pressures, and additional layers of regulation around energy performance and compliance, all of which have a significant impact on overall budgets.
What something cost five or even three years ago isn’t just outdated, it reflects a different market entirely. But there are ways to bridge the gap. Start by speaking to professionals who are pricing projects right now. Architects, quantity surveyors, or experienced contractors can help with giving a guide figure. Even a rough estimate that reflects today’s market is a much more reliable starting point than relying on memory or online averages.
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Another reason budgeting feels so uncertain is that the real costs involved in building or renovating aren’t always visible, especially in the early stages. At that point, most people are gathering inspiration, not pricing. They’re looking at Pinterest boards, showroom displays, or watching home makeover shows that deliver impressive results but rarely show the full breakdown of what those results actually cost.
Often, what’s left out are the less glamorous line items: labour, VAT, professional fees, or the logistics of fitting out a real home. This can give people a skewed sense of what’s achievable within a certain budget.
Even when you do begin gathering quotes, prices can vary widely. At best, early-stage estimates can give you a general sense of what a project might cost. But it’s important to remember that these are only ever rough guides. The most accurate pricing will come once your project is fully designed, specified in detail, and sent out to tender. That’s when contractors can price the work properly – and it’s normal for that figure to differ from your original assumptions. It’s not poor planning – it’s just how the process works.
If you’re planning a project now, it’s completely understandable to feel overwhelmed when the numbers start to come in. Many homeowners are surprised by just how much costs have moved on, even in the last couple of years. But that doesn’t mean your plans aren’t possible. It just means your approach to budgeting might need to shift.
Instead of starting with a fixed number and trying to fit everything into it, it’s often better to flip the process around. Rather than asking “What can I get for €50,000?”, ask “What does the project I want actually cost?” Once you understand the true cost of the design you have in mind, you can then decide whether to scale back, phase the works, or revise the spec to bring things in line with your budget.
It’s also important to let go of comparisons to past projects. What you paid for a similar extension five years ago likely won’t reflect current costs. Treat this project as a clean slate and price it accordingly.
Another helpful mindset shift is to stop looking at things in isolation. A tile isn’t just a tile, it comes with adhesive, grout, underlay, labour, and VAT. The same goes for a kitchen. It’s never just the cabinetry and appliances. You’ll need to allow for electrics, plumbing, flooring, prep, fitting, finishing, and sometimes specialist installation costs. Zooming out and thinking in terms of complete packages rather than individual items will help you avoid surprise costs down the line.
Finally, don’t forget the other essentials that can quietly add up. Homeowners often budget for the builder but forget to include items like professional fees, planning contributions, or the cost of moving out and storing furniture while works are under way. And of course, no budget is complete without a contingency, ideally at least 10 to 15 per cent of the construction cost to cover the unexpected. It’s often the costs outside the build contract that tip people over budget, so factor them in from the outset.
If you feel like the only person unsure of what a renovation should cost, believe me, you’re not. Stay flexible throughout the process, and give yourself permission to rework your plan until it fits your budget and your needs. You can still get the home you want, you just might have to approach it differently than you did the last time.
