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Costs8 min read • Updated Jan 2026

London Extension Costs 2026: The Complete Price Guide

Real extension prices for 2026 based on current builder quotes and completed projects. From single-storey rears to basement conversions, here is what you will actually pay in London.

Quick Answer

In 2026, London extensions cost £3,200-£4,600 per m². Single-storey rear: £60k-135k, loft conversion: £52k-100k, two-storey: £110k-290k. Prices are up 3-4% from 2025 due to labour cost inflation.

£3,200-£4,600

Per m² Cost

£60k-£135k

Single Storey

£110k-£290k

Two Storey

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2026 Construction Market Overview

Construction costs in London have risen approximately 3-4% from 2025 to 2026. This follows the pattern of steady increases since 2022, driven primarily by labour costs rather than materials.

Key 2026 trend: Labour costs are up 7% year-on-year, with skilled tradespeople in high demand. Material costs have stabilised but remain elevated. Builder capacity is still constrained, meaning lead times of 3-6 months are common for reputable contractors.

What is Driving 2026 Prices?

  • Labour inflation: Skilled tradespeople wages continue rising above general inflation
  • Building Regs 2025: Updated Part L insulation requirements add 2-3% to build costs
  • Capacity constraints: Good builders are booked 3-6 months ahead
  • Materials stable: Most materials flat, but metals 6-10% above 2024 lows

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Cost Per Square Metre in 2026

London extension costs in 2026 range from £3,200 to £4,600 per m² depending on specification and complexity.

Specification LevelCost/m² (2026)What is Included
Budget£3,200 - £3,600Standard materials, basic finishes, painted walls
Mid-Range£3,600 - £4,200Quality finishes, engineered flooring, good lighting
High-End£4,200 - £4,600Premium materials, underfloor heating, smart home features
Premium£4,600+Architect-designed, bespoke joinery, high-spec glazing

Important: These m² rates cover construction only. Add 10-15% for professional fees (architect, structural engineer), plus your kitchen/bathroom fit-out, plus 10% contingency. See our guide to hidden costs of London extensions for a full breakdown.

Extension Costs by Type (2026)

Single-Storey Rear Extension

The most popular extension type in London. A rear extension creates open-plan kitchen-diners or larger living spaces.

Small (15-20m²)£60,000 - £75,000
Medium (20-25m²)£75,000 - £100,000
Large (25-30m²)£100,000 - £135,000
Typical project£80,000 - £95,000

Two-Storey Rear Extension

A two-storey extension adds both ground floor space and an extra bedroom or bathroom above. Best value per m² but requires planning permission.

Small (30-40m²)£110,000 - £150,000
Medium (40-50m²)£150,000 - £200,000
Large (50-60m²)£200,000 - £290,000
Typical project£140,000 - £165,000

Loft Conversion

No foundation costs make a loft conversion excellent value. Converts unused roof space into bedroom(s) with en-suite.

Velux/Rooflight£52,000 - £62,000
Dormer (rear)£62,000 - £82,000
L-Shaped Dormer£75,000 - £95,000
Mansard£85,000 - £100,000
Typical dormer£68,000 - £78,000

Side Return Extension

A side return extension fills the narrow alley beside terraced houses. Widens the kitchen significantly for a modern open-plan layout.

Small (8-10m²)£60,000 - £70,000
Medium (10-12m²)£70,000 - £82,000
Large (12-15m²)£82,000 - £95,000
Typical project£65,000 - £80,000

Wrap-Around (Side + Rear)

A wrap-around extension combines side return with rear extension for maximum ground floor space. Popular with Victorian terraces.

Small (20-25m²)£90,000 - £110,000
Medium (25-35m²)£110,000 - £145,000
Large (35-45m²)£145,000 - £185,000
Typical project£115,000 - £140,000

Basement Extension

A basement extension is the most expensive per m² but creates significant space without reducing garden. Complex engineering required.

Small (25-35m²)£165,000 - £220,000
Medium (35-50m²)£220,000 - £310,000
Large (50-70m²)£310,000 - £390,000
Cost per m²£5,500 - £7,000/m²

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What is Included (and What is Not)

Typically Included

  • Foundations and groundworks
  • Walls, roof, and structure
  • Windows and external doors
  • First-fix electrics and plumbing
  • Plastering and decoration
  • Basic floor finish

Usually Extra

  • Kitchen units and appliances
  • Architect fees (8-12%)
  • Structural engineer (£1.5k-3k)
  • Party wall agreements (£1k-3k)
  • Planning fees (£258-500)
  • Landscaping and paving

Costs by London Area (2026)

Extension costs vary by area due to local builder rates, access constraints, and parking zone requirements:

AreaCost VariationNotes
Prime Central+15-25%Kensington, Chelsea, Westminster - premium builder rates
Inner London+5-15%Islington, Hackney, Camden - access challenges, parking
South LondonBaselineLewisham, Greenwich, Southwark - average costs
Outer London-5-10%Bromley, Croydon, Barnet - better access, lower rates
Conservation Areas+5-10%Higher design standards, matching materials required

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How to Budget Your Extension

The Real Total Cost Formula

Here is how to calculate a realistic budget for your 2026 London extension:

Example: 25m² Single-Storey Extension (2026)

Construction (25m² x £3,600)£90,000
Architect fees (10%)£9,000
Structural engineer£2,500
Party wall agreements£2,000
Planning fees£500
Kitchen (mid-range)£15,000
Contingency (10%)£12,000
Total Budget Required£131,000

Frequently Asked Questions

How much does a house extension cost in London in 2026?

In 2026, London house extensions typically cost £3,200-£4,600 per m². A single-storey rear extension costs £60,000-£135,000, a loft conversion £52,000-£100,000, and a two-storey extension £110,000-£290,000. Prices increased approximately 3-4% from 2025 due to labour cost inflation.

What is the cost per square metre for an extension in London 2026?

London extension costs per m² in 2026 range from £3,200 for basic single-storey builds to £4,600+ for high-specification finishes. Two-storey extensions cost £3,400-£4,200/m² due to additional structural requirements.

How much has construction cost increased in London for 2026?

Construction costs in London have risen approximately 3-4% from 2025 to 2026. This is primarily driven by labour cost inflation (up 7% year-on-year) and capacity constraints in the construction sector.

What is the cheapest type of extension in London?

The most cost-effective extension per m² is a single-storey rear extension at £3,200-£3,800/m². However, for total project cost, a small side return (8-12m²) or a loft conversion can offer better value for the space gained.

Should I get multiple quotes for my London extension?

Yes, always get 3-4 quotes from reputable builders. In London's 2026 market, quotes can vary by 20-30% for the same project. Compare like-for-like specifications and check what is included.

Summary: 2026 Extension Costs

London extension costs in 2026 have increased 3-4% from 2025, driven primarily by labour cost inflation. For a typical mid-range project, budget:

  • Single-storey rear: £95,000-£130,000 all-in
  • Loft conversion: £65,000-£95,000 all-in
  • Two-storey: £165,000-£250,000 all-in

Start with accurate pricing before commissioning designs. Use our free cost calculator to get a personalised estimate based on your property type, location, and project requirements.

Last updated: January 2026Next review: April 2026

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London Extension Costs 2026: £60k-£300k Real Prices