You're looking around house number 20 on your list. It seems perfect but if only......

At the end of the day, there's only one way to have your ultimate dream home and that's to build it yourself.

It may sound extreme, but according to the National Federation of Builders, more and more people are moving up the property ladder armed with cement mixer and trowel.

Spurred on by soaring house prices, more than 15,000 people a year are DIY-ing it at an average cost of £147,000 - representing one in 10 of all new houses built in Britain.

However, if you are still in two minds, be warned that the path to perfection is paved with its own perils and pitfalls.

"There's no dispute that the rewards of building your own home from scratch are considerable, both personally and financially," said National Federation chief executive, Tony Maynard.

"For those who plan and budget wisely, it's possible to cut up to 30 per cent off the cost of buying a similar ready-built home.

"But people need to realise that a poorly-managed building site is a breeding ground for delays, defects and accidents."

And with the world's allocation of unreliable, shoddy or downright lazy tradesman out there, it's vital to ensure hired help is reputable.

"Building your own home is a huge financial investment and it's just not worth taking risks," he said.

"Instead of your dream home, you could end up with a house from hell that's got no future saleability."

Here are some essential starting points.

The first step is to find a suitable plot of land. Work out where you want to live and your accommodation requirements, so you can pinpoint the general area of your search and the size of the plot you need.

Permission

You can hunt for a plot through estate agents or the Self-Build Advisory Service at www.plotsearch.co.uk

But do not buy a plot unless it at least has outline planning permission, which grants permission to build on the site.

If it doesn't, arrange to buy it subject to a successful planning application. You don't need to own the land to do this - you just need the landowner's consent.

Don't forget ground conditions of a potential plot can influence the design and cost of your house. Arrange to have a soil survey carried out and check whether any levelling of the land is required, as this can be costly.

A building plot needs vehicular access to a public highway, which meets highway safety standards.

Even though planning permission may have been given for a house, if highway standards cannot be met, your project could be in jeopardy.

And where a plot leads on to a private road, check you have the right to use that road and who is in charge of its maintenance.

Where there is land belonging to someone between your plot and the highway, you have no automatic right to cross it, and if the owner won't let you cross or even buy it, you'll have to look elsewhere.

Look into the location and cost of connection to the main services, as you might have to budget for bringing the pipes and cables up to your plot.

You could consider buying a plot with an existing building that can be demolished, as although the initial cost may be higher, you could benefit from existing access to highways, electricity and gas.

Work out a realistic budget. Include a margin of at least 10 per cent to cover any unforeseen expenses.

Make sure your builder offers an insurance-backed warranty. The National Federation operates the Benchmark Plan - a members-only insurance scheme which pays out the cost of correcting building work defects for up to 20 years.

Draw up a contract. The JCT building contract - a straight-forward, plain English document - is recommended, which sets out exactly what is expected.

For a copy, priced £9.95, call CIP on 0121 722 8200 or visit www.buildingcontract.co.uk

Covered

If you plan to manage subcontract labour yourself, a site insurance policy, made up of public liability, employers' liability and all risks insurance, is vital.

It ensures, if anyone is hurt or fire breaks out during the project, you are covered.

Avoid builders who demand cash up-front or offer cheap, VAT-free deals, like the plague.

By accepting such offers, you leave yourself open to tradesmen who have suspect attitudes to laws, regulations and taxes - and may even disappear halfway through.

Two useful publications, Avoid Cowboy Builders and Finding the Builder who's Right for You, are available free of charge from Construction House, 56-64 Leonard Street, London, EC2A 4JX, telephone 0207 608 5150.