Nearly three-quarters (73%) of homebuyers who are currently renting would consider a ‘fixer-upper’ property if it meant being able to buy at a lower price.
Property website Rightmove surveyed 34,000 people to find out more about attitudes to renovation project properties. The research found that the same percentage of those who already own a home said the opportunity to create their perfect home would be their main motivation for buying somewhere that needs work.
Nearly one in two of those renting (47%) said they wanted to take on a property needing work so that they could add value to it, compared to 64% of those who are already homeowners.
According to Rightmove, home-movers can expect to pay around £327,000 for a fixer-upper property, which is £44,000, or 12% lower than the current average asking price of £371,858.
Tim Bannister, property expert at Rightmove said: “Tackling a renovation project could be amore affordable way to get on the ladder and to make a space your own. While they do require time and planning, many find the process worth while, as it can offer both financial benefits and the satisfaction of creating a home that truly fits their needs.”
Areas with the most fixer upper properties for sale include Ceredigion in Wales, with 4.2% properties for sale which need work, Lincoln in the East Midlands and Carmarthenshire in Wales, with 3.7% and 3% of properties for sale in these areas respectively requiring renovation. Areas in the south with the most fixer-upper homes for sale include Hastings in East Sussex and Slough in Berkshire, with 2.7% and 2.6% of homes there respectively needing work.
Energy efficiency a top priority
Over half (57%) of both renters and homeowners said that taking on a renovation project would enable them to make the property more energy efficient, which could help keep future energy bills down.
Several mortgage lenders, including Barclays, Halifax and Virgin, provider green mortgages which offer rewards, typically in the form of cashback, if you improve the energy efficiency of your property. Barclays’ Greener Home Reward mortgage, for example, offers one-time cash rewards of up to £2,000 to help with the cost of adding solar panels, insulation, a heat pump and other home improvements.
Seek professional advice from a broker if you need help choosing a green or a standard mortgage to fund a fixer-upper property purchase.
