I want to set up a community website with a blog and members should be able to interact with each other with ease.

Do I really need to spend £1000+ to get a website like that or do you think its possible to do it myself?

I will receive a call from a web design company tomorrow but I'm worried that they might want to charge me a monthly fee which will work out much more expensive in the long run.

What about forum ? Check out https://www.vbulletin.com/en/

Hello, @Amazin-Flash! I'm not a WordPress expert here but I would like to share some advice since I have both web design and development experience.

I believe WordPress is one of the best platforms for this purpose. You can check here other platforms which you can use:
http://www.creativebloq.com/web-desi...orms-121413634
https://makeawebsitehub.com/choose-r...ging-platform/

In my opinion, the price range of £1000+ may fall under the complete website package which includes fully customized design, strong development, premium support, and back-end stuff. Expect a high-quality website for this price range. However, the price could be too expensive if you're only planning to set-up a normal blogging site. Not to take away anything from the designers and the developers, but you can build a blogging site by yourself today with some website builders. Take a look at some these:

a. www.******.com
b. www.wix.com
c. www.wordpress.com
d. www.squarespace.com

The advantage of building websites by using these platforms are the minimized cost and ease of use. You can even manage the site on your own. The community is always there if you need support. Web design skill is not necessary as there are already templates that are editable. If needed, you can hire a web designer at a favorable price.

I haven't heard a designer or an agency charging monthly fees for the design (unless you want to modify the design occasionally). Usually, web design services are a straightforward deal; you share your ideas, designers implement, and when you are happy, you buy the design. The design is now yours and you can hire a developer to bring the design into life

Here are some blogging sites built on Wix:
www.wix.com/blog/2014/10/creating-blogs-with-wix

thank you so much Tempoboard, very comprehensive reply. I think I will looking into a forum instead and certainly. It is so true, social media site have lot of limitations and full of competing agendas.

No problem, @Amazin-Flash! You can post your updates here regarding your site and let's see what we can do to help. While you are looking into forums, you may also want to read these online articles which may help your site:

How to Start a Blog
http://www.creativebloq.com/web-desi...a-blog-1131726

Practical Tips to Make Your Blog More Useful & Interactive
www.toprankblog.com/2012/03/6-blogging-tips

Have a great day!