📅 January 2026 • 12 min read

Beginner's Guide to Home Renovation Costs

Everything a first-time renovator needs to know — cost categories, labour rates, permits, taxes, and the golden rule of contingency.

The Four Cost Buckets

Every renovation — from a single room repaint to a full home renovation — contains the same four cost categories:

  1. Materials: Flooring, paint, tiles, fixtures, fittings
  2. Labour: Fitting, plastering, electrical, plumbing, decorating
  3. Prep and disposal: Strip-out, levelling, skip hire, rubbish removal
  4. Contingency: 15% buffer for unforeseen issues

💡 Use our free Budget Template to track all four buckets with automatic totals and contingency calculation.

Typical Costs by Trade

US (2026 national averages):

  • Flooring installation: $4–$8/sq ft
  • Professional painting: $3–$6/sq ft of wall area
  • Tile installation: $10–$20/sq ft
  • Licensed electrician: $80–$130/hour
  • Plumber: $85–$150/hour

UK (2026):

  • Flooring: £20–£40/m²
  • Painting/decorating: £150–£250/day
  • Tiling: £50–£100/m²
  • Electrician: £50–£80/hour
  • Plumber: £60–£100/hour

Essential Planning Rules

  • Always get 3 quotes for any project over $1,000 / £500
  • Check contractor licences and insurance before signing
  • Never pay more than 25–30% upfront
  • Get the full scope of work in writing before signing
  • Budget labour at approximately the same as materials (often more)
  • Add 15% contingency to every project total

Taxes and Permits

Interior renovations (flooring, painting, non-structural) generally don't require planning permission. Exceptions: listed buildings, apartments with management restrictions.

Tax rules: UK VAT at 20% applies to materials and labour. Canada: GST/HST 5–15%. Australia: GST 10%. US: sales tax on materials only (6–10% depending on state).

FAQ

Generally no for flooring, painting, and non-structural work. Exceptions: listed buildings or heritage properties, apartments with management restrictions. Electrical and gas work requires licensed contractors and may require sign-off certification in all countries.
Use our calculators to get a material cost baseline, then double it to account for labour. Add 15% contingency on top of that total. Then get 3 professional quotes to verify your estimate.