Homebuyers could save themselves up to £21,000 by purchasing a ‘fixer upper’ home, research by Yopa has found.
The full-service estate agent has analysed the price difference between unmodernised properties and similar, comparable properties in the same area that have undergone recent upgrades.
It found the unmodernised properties – dubbed fixer-uppers – typically require a degree of additional elbow grease due to outdated kitchens, bathrooms and decor.
But the fact these properties require this work means the potential cost of revamping them is factored into the price and they can come at a discount compared to their more modern counterparts.
Fixer-upper savings by location
Yopa said analysis of the 41,951 unmodernised properties currently available in Great Britain, suggested the average asking price was currently £313,835. This is a saving of 6.2%, or £20,632, compared to the average price for modernised equivalents, which is £334,467.
It said the biggest savings were on offer in the Yorkshire & Humber region where the average fixer-upper asking price of £200,000 provides a saving of 9.7%, or £21,500.
In Wales, fixer-uppers come with a discount of 9.5% – a cash saving of £20,545.
In both Scotland and the East Midlands, the discount associated with a fixer-upper comes in at 9.3% – a respective cash saving of £18,700 and £23,485.
When it comes to availability, the South East which has been hailed Britain’s fixer-upper hotspot. With 7,321 properties, the region accounts for 17% of the nation’s unmodernised homes currently listed for sale.
With 6,336 unmodernised homes, the South West accounts for 15% of available fixer-upper for sale stock, with the North West accounting for 11% with 4,802 fixer-uppers up for sale.
Factoring in the cost of renovating your fixer-upper
Although you can make saving on the initial price, and also increase the market value, Yopa has urged anyone considering a project like this to factor in the rising cost of construction materials.
UK Government data reveals the price of doors and windows has risen by 17.5% in the past year, for example, while ready-mixed concrete has increased by 16.8%, and the price of metal screws and the like has increased by 14.5%.
Verona Frankish, CEO of Yopa, said: “Buying a fixer-upper is a great way of saving money on the initial property purchase, but is also in many ways a lifestyle commitment – are you prepared to spend all of that time renovating the home before you can properly enjoy it?
“If you are, fixer-uppers present a blank canvas from which you can create your ideal home while also adding great value to the property.
“But with the price of many building materials now significantly higher than they were just a year ago, this work will cost more than it used to.
“Therefore, buyers need to be sure that they have fully considered the cost and time required to tackle a fixer-upper before they commit to a purchase.”
