Homebuyers could save almost £21,000 by purchasing a ‘fixer-upper’ in the current market, new research from YOPA has revealed.
YOPA analysed the price difference between unmodernised properties and similar properties in the same area that do not need modernisation.
Unmodernised properties, often known as ‘fixer-uppers’, typically require a degree of additional work due to outdated kitchens, bathrooms and decor.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.
In fact, the latest market data shows that across the 41,951 unmodernised properties currently available in Great Britain, the average asking price is £313,835.
This was calculated to be a saving of 6.2%, or £20,632, compared with the average price for modernised equivalents (£334,467).
The biggest savings were found in the Yorkshire & Humber region, where the average fixer-upper asking price of £200,000 marked a saving of 9.7%, or £21,500, compared with the region’s modernised comparable properties.
In Wales, fixer-uppers come with a discount of 9.5% compared to local modernised comparable properties – a saving of £20,545.
In both Scotland and the East Midlands, the discount associated with a fixer-upper came in at 9.3% – a respective cash saving of £18,700 and £23,485.
The data revealed the South East to be Britain’s fixer-upper hotspot.
With 7,321 properties, the region accounted for 17% of the nation’s unmodernised homes currently listed for sale.
With 6,336 unmodernised homes, the South West accounted for 15% of available fixer-upper for sale stock, with the North West accounting for 11% with 4,802 fixer-uppers up for sale.
However, UK Government data showed that the price of doors and windows increased by 17.5% in the past year, while ready-mixed concrete increased by 16.8%, and the price of metal screws and similar items 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.”
