New research from YOPA, the full-service estate agents, reveals that homebuyers can save almost £21,000 by purchasing a fixer-upper in the current market.
YOPA analysed the price difference between unmodernised properties* and similar, comparable properties in the same area that do not need modernisation.
Unmodernised properties, often known as fixer-uppers, typically require a degree of additional elbow grease due to outdated kitchens, bathrooms and decor. Because of the work that these properties require, and the assumed scale of the cost, unmodernised properties often come at a discount compared to their more modern counterparts.
How much can you save with a fixer-upper?
In fact, the latest market data shows that across the 41,951 unmodernised properties currently available in Great Britain, the average asking price currently sits at £313,835. This is a saving of 6.2%, or £20,632, compared to the average price for modernised equivalents (£334,467).
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The biggest savings are on offer in the Yorkshire & Humber region where the average fixer-upper asking price of £200,000 marks a saving of 9.7%, or £21,500, compared to the region’s modernised comparables.
In Wales, fixer-uppers come with a discount of 9.5% compared to local modernised comparables, which marks 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.
With such tempting discounts available, where do buyers have the best chance of finding a fixer-upper?
The data reveals the South East to be 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.
Beware the rising cost of construction
Fixer-upper properties offer great savings compared to their modernised counterparts, and with these savings, buyers are able to embark on the required renovation works which not only results in a bespoke home, but also help increase its market value.
But, buyers should be warned that the cost of construction materials has increased significantly over recent years which will undoubtedly eat into any savings that were made on the purchase.
UK Government data shows that the price of doors and windows has increased 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%.
These material cost rises are going to increase the cost of all renovation efforts and eat into a portion of the savings made by purchasing a fixer-upper.
CEO of Yopa, Verona Frankish, 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.”
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