It is one of the most common questions we are asked: should I buy this derelict farmhouse and renovate it, or should I build new? Both routes have merit depending on your goals, budget and tolerance for uncertainty. After 17 years doing both across Somerset, Devon and Dorset, here is our honest assessment of the two options in 2026.
The Case for Full Renovation
Somerset has a remarkable stock of period farmhouses, cottages and barns that can be transformed into exceptional homes. The appeal is obvious — original features, character that cannot be replicated, established gardens, and in many cases a purchase price that reflects the property's condition rather than its potential. However, renovations carry a fundamental risk that new builds do not: you are working with an existing structure and cannot always know what you will find.
The Case for New Build
A new build in Somerset gives you complete control over specification, layout, energy performance and finishes. Modern construction techniques allow for extremely high thermal performance — a well-specified new build will have dramatically lower running costs than even a well-renovated period property. And critically, on a new build, the cost is fixed once you have your tender price. On a renovation, surprises add up.
2026 Cost Comparison — Somerset
| Factor | Full Renovation | New Build |
|---|---|---|
| Cost per m² | £400 – £1,200/m² | £1,500 – £2,200/m² |
| Cost certainty | Low — unknowns common | High — fixed contract possible |
| Planning risk | Low — existing building | Medium — depends on site |
| Energy performance | Poor to moderate | Excellent (Part L 2021+) |
| Character and uniqueness | High | Low (unless bespoke) |
| Timescale | 3–12 months typically | 9–18 months typically |
| VAT on construction | 0% for new residential | 5% or 20% on renovation works |
The VAT Difference — Often Overlooked
New residential construction is zero-rated for VAT in the UK. Full property renovation is VAT-rated at 5% for properties empty for more than 2 years, or 20% for standard residential renovation. On a £200,000 project, this is a £10,000–£40,000 difference. For many clients, this single factor tips the financial comparison firmly in favour of new build on larger projects.
Our Honest Verdict
If you are buying a structurally sound period property in Somerset for £200,000–£400,000 with a renovation budget of £80,000–£150,000, renovation typically delivers outstanding value and a result that no new build can match for character. If you are looking at a derelict or near-derelict property that needs more than £200,000 of work, the numbers often point toward new build — particularly when energy performance, running costs and VAT efficiency are taken into account over a 20-year horizon.
Discuss your Somerset project with Brick Builds — free initial consultation
Free site visit — no obligation