Clever Ways to Cut Costs in Your Tiny Home

We help Maximize Your Rental Income with Sustainable Rural Home Designs, provided by RIBA Chartered Architects.

Introduction - Saving money in your Tiny Home

When embarking on a self-build project, cutting costs is often a top priority. But as with all things, there are smart ways to save and pitfalls to avoid. One of the most effective methods is to design precisely for the space you need, avoiding the temptation to add unnecessary square footage. In this article, we’ll explore the best ways to reduce costs during a self-build and highlight common mistakes. Too often, so-called cost-saving measures turn out to be detrimental in the long run, costing more in repairs and maintenance. We'll also dive into the merits of material selection and how to make long-term savings without compromising quality.

Design Only the Space You Need

One of the most overlooked yet effective ways to save money in a self-build is to focus on designing the space you actually need—no more, no less. In my experience, this is one of the smartest cost-saving measures. I’ve seen countless projects, particularly luxury homes, where there is an unnecessary excess of space. Whether it’s an oversized lounge or more bedrooms than will ever be used, these additions can inflate the budget with little benefit.

I understand the reasoning behind this: when you’re extending or building a home, there’s a fear that you might regret not having enough space down the line, so you opt to add a little more. However, when it comes to self-built holiday homes, for example, most guests prefer intimate, functional spaces that are well-designed and practical. More often than not, the quality of space trumps quantity.

Let’s take a simple scenario. Imagine you’re building a cabin that’s four metres high, 11 metres long, and 4 metres wide. This project might cost you around £111,000. For delivery, you’d need an escort from the factory to the site, costing an additional £6,350. Now, let’s say you decided to scale the project down—reducing the height to three metres, the length to 8 metres, and the width to 3.3 metres. This seemingly small change can cut the cost of the build by around 23%, bringing it down to roughly £85,750. What’s more, you no longer need an escort for delivery, reducing that cost from £6,350 to £2,150. So overall, the project becomes cheaper without sacrificing much, if any, functionality.

In this scenario, you’ve shaved thousands off the overall cost without sacrificing much in terms of function or experience. The cabin becomes more intimate but also spatially efficient. And what's more, other costs drop too—your energy bills will be lower, and overheads like maintenance are reduced.

An example of how reducing the size can become more spatially efficient, without reducing the quality of the space. 

Lead Flashing vs. Flashing Tape: Lessons in Material Selection

A recent conversation with my dad illustrates a point that often arises during self-build projects—opting for cheaper materials with the hope of saving money. He asked why I had specified lead flashing on a project instead of using flashing tape, which is cheaper and easier to apply. It’s a fair question and one that many clients would ask.

For context, lead flashing is more expensive and requires skilled labour to install, whereas flashing tape is a more affordable and simpler option. However, the key difference lies in longevity: lead has a lifespan of over 100 years, while flashing tape typically lasts around 10 to 15 years, depending on its exposure to UV light. Over time, flashing tape can degrade and crack, leading to costly repairs. The upfront savings on flashing tape may seem attractive, but when you factor in the costs of replacement and labour in the future, lead flashing offers far better value.

This example highlights a broader principle—cutting costs by using cheaper materials can often backfire. In most cases, durable materials with a higher initial cost end up saving money in the long term by reducing the need for maintenance and replacement. While it might seem tempting to go for the cheaper option at the moment, it’s essential to think about the lifecycle of the building and the materials used.

If your interested in reading more concerning more affordable materials - why not read our article Eco-Friendly and Affordable: Top 5 Materials for Holiday Homes

Efficient Procurement and Self-Sourcing Materials

An often overlooked strategy for reducing construction costs is sourcing materials yourself. While many contractors prefer to manage procurement, taking the time to research and purchase some materials on your own can lead to significant savings. By shopping around and avoiding mark-ups from suppliers or contractors, you can get the same high-quality materials at a lower price. It's worth considering for items like finishes, fixtures, or even timber, where small price differences can add up over the scope of a whole project.

Additionally, timing your purchases right can also help. Many suppliers offer seasonal discounts or bulk deals, so planning material purchases well in advance can result in considerable savings. The key is to balance cost with quality and ensure that your materials are sourced in alignment with your project schedule to avoid unnecessary delays. This approach, combined with thoughtful planning, can result in substantial savings without compromising the integrity of your build.

The Importance of Good Project Management

One of the key factors in keeping a self-build project within budget is strong project management. As explored in the book How Big Things Get Done, effective management can be the difference between a project running smoothly or spiralling out of control. Poor planning and execution often lead to cost overruns, delays, and unexpected problems that eat into your budget. Successful projects, on the other hand, are those where every detail is meticulously planned out, and timelines and budgets are rigorously adhered to. A good project manager will break down the build into clear, manageable phases, ensuring that each phase runs on time and within the set financial parameters. By anticipating potential setbacks and maintaining strong communication between all parties involved—from architects and contractors to suppliers—good project management minimizes risk and prevents costly surprises. To learn more about project planning you can read our article How to Use RIBA Plan of Works for Small Projects.

A project we are currently working on that aims to be spatially optimised. Shipping Container Living. 

Maximizing Energy Efficiency from the Start

Another significant way to reduce costs in the long run is by prioritizing energy efficiency right from the design phase. While it may seem like an upfront investment to add higher-quality insulation, energy-efficient windows, or even renewable energy systems like solar panels, the savings can be considerable over time. A well-insulated home, for example, will require far less energy for heating and cooling, slashing energy bills and reducing the environmental footprint of the building.

Moreover, these energy-efficient solutions can enhance the comfort and functionality of the home without increasing the overall square footage. Technologies such as underfloor heating or smart home systems can ensure that energy is used only when and where it’s needed, optimizing your build for both comfort and cost-effectiveness. In some regions, you might even be eligible for government grants or incentives for adopting energy-efficient practices, further reducing the financial burden of these investments.

Conclusion: Thoughtful Design and Smart Choices Lead to Savings

In the world of self-build, cutting costs can be done in many ways, but not all methods are created equal. While some focus on trimming contractor fees or opting for cheaper materials, the most impactful savings often come from designing the right amount of space and selecting durable, long-lasting materials.

Before you start cutting corners, it’s worth considering where those choices might lead in the long run. Opting for quality materials like lead flashing and ensuring every square metre serves a purpose will help you avoid unnecessary costs in the future, leaving you with a home that not only meets your immediate needs but also stands the test of time.