Renovation Properties Becoming More Attractive to Buyers
New research has found that more buyers are searching for a renovation property when purchasing a new home rather than opting for a finished home.
The survey, commissioned by Zoopla, shows that 70% of buyers would prefer to go for a property that needed some work doing to it instead of one that they could move straight into without any thought.
On average, we are putting aside £17,765 for the renovation work on a new property, such as fitting a new kitchen or balcony railing, so that we can put our own stamp on it. The scale of the work that is required on some of these homes doesn't even seem to be deterring buyers, and a third of those who were questioned would take on projects that need significant renovations, including structural alterations.
We appear to be becoming a nation of DIY enthusiasts as well, with 20% of homeowners prepared to do a large chunk of the work themselves instead of getting professionals in.
The survey highlighted that the type of work we are most likely to do ourselves includes decorating (14%), laying new floors (12%) and working on the garden (9%). However, there are some elements where it's important to get the right type of help and advice, such as dealing with gas and electrical appliances or installing a balcony railing.
This desire for DIY does not appear to be a short-term fad, and recent data from Lloyds Bank showed that the amount we spent on home improvements rose by 13% last year and now totals £5.8 billion, which is the highest level for seven years. There was also a decrease of 15% over the course of the same period in the money we spent on employing tradesmen, which now stands at £1.6 billion.
The main reason behind this desire to buy a project is that homeowners are hoping that any work they do on the property will lead to an increase in the value, so they can make a profit when they come to resell, helping them to move up the housing ladder.
61% of the people surveyed thought about how much they could add to the value of their home before they took on a renovation, and also the type of improvements that would be most beneficial. The areas that they are more inclined to focus on are new bathrooms and kitchens, conservatories and loft conversions, which could feature a balcony with a wrought iron balcony railing.
However, it's not always the case that these projects are successful, and some homeowners did admit in the research to leaving part of the work unfinished. A quarter of respondents had failed to finish some of the elements of their home improvements, which could have negatively affected the value.
Taking on a renovation project could be an ideal way of making a larger profit on your next purchase, as well as improving the layout and design of the property, but it's important to understand exactly what you're taking on and ensure that you have the knowledge and budget to complete the work.