Renters are increasingly turning to ‘fixer-uppers’ – Rightmove

Renters are increasingly turning to ‘fixer-uppers’ – Rightmove

0:01 AM, 13th November 2024, About A week ago 5

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Renters across the UK are increasingly turning to fixer-upper properties as a more affordable route to homeownership, according to a survey from Rightmove.

The property platform questioned more than 34,000 home movers and found that 68% of renters are eager to take on renovation projects, compared to 54% of homeowners.

This trend is driven by the significant price difference between fixer-uppers and properties not needing renovation.

On average, fixer-upper homes are 12% cheaper – or £44,634 – than the average property for sale.

Rightmove says the average asking price for a fixer-upper is £327,224, while the average for non-renovation properties is £371,858.

‘Tackling a renovation project’

Tim Bannister, Rightmove’s property expert, said: “Tackling a renovation project could be a more 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 worthwhile, as it can offer both financial benefits and the satisfaction of creating a home that truly fits their needs.”

The rising cost of renting is a big factor driving this trend.

Rentals have increased by 61% over the past decade, with the average advertised rent outside of London now at £1,344 per month, up from £832 in 2014.

Tenants are interested in fixer-uppers

Potential buyers in the South East, West Midlands and London are particularly interested in fixer-uppers, probably due to higher property prices in these regions.

For renters, the potential savings from buying a fixer-upper can be substantial, especially in areas with high property prices.

Also, renovating a home can offer the satisfaction of creating a personalised space and the potential for future cost savings through improved energy efficiency.

Rightmove has introduced a renovation calculator to help people assess the potential value-add of renovation projects.


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dismayed landlord

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12:18 PM, 13th November 2024, About A week ago

I based my whole portfolio on buying cheap fixa uppers. The profit was already in the property before I let them out. Ok it’s hard work but worth it.

Cider Drinker

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13:27 PM, 13th November 2024, About A week ago

Renters don’t buy property. They rent it. The clue is in the name.

Reluctant Landlord

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13:56 PM, 13th November 2024, About A week ago

This also assumes the FTB has the money saved to be able to get the work done and it can be lived in straight away - even in April once the SD levy reverts and interest rates on mortgages still on balance fairly high? I thought a lot of mortgage companies are now asking that a certain EPC level is required first like a C. Are FTB really able to get a mortgage on EPC F or G's??

If they are already renting, then this suggests that their current rent is actually affordable, so this is simply personal choice not financial necessity. Not sure how many in numbers this really equates to...as the survey says 'eager to take on renovation projects', not actually purchasing and carrying them out...

DPT

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16:06 PM, 13th November 2024, About A week ago

Building costs are currently so high that the cost of the renovation would likely exceed the stated 12% margin before the property is in negative equity. That's if they can persuade a lender to grant a mortgage on a dilapidated property in the first place. Sounds like pie in the sky to me.

Darren Bell

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19:28 PM, 13th November 2024, About A week ago

I think its great that people are moving off the rental market into their own home. Its sad to lose a good tenant but great to know they are moving forward with their lives in their own home.

As most on here would know, property renovation is generally far more than just a lick of paint so its really not for the low end DIY enthusiast and the costs stack up fast, but for someone already in the building trade or has skills, the journey is worth the effort.

I don't do a lot of work in the UK now but as a building designer I have seen some pretty rough DIY attempts which is about the time I had come in to make sense of a project and amazing completions when the new home owner gets a handle on it.

I only hope that these former tenants taking on the renovations are going in with their eyes open.

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