"As it stands, buyers continue to face far higher borrowing costs than they’ve become accustomed to in recent years and it’s clear that affordability remains a sizable obstacle when it comes to the pursuit of homeownership"
- Steve Anderson - Yopa
The latest analysis from Yopa has revealed that more homebuyers are turning to fixer-upper homes to help keep costs down, whilst modern homes and the higher price tag they command are less in demand in current market conditions.
Yopa analysed the market landscape across England looking at three types of homes listed for sale in the current market - period properties, fixer-upper homes and modern homes - and which were most in demand amongst the nation’s homebuyers.
The analysis of almost 330,000 property listings shows that fixer-upper homes are currently the most in-demand among buyers. Of those listed for sale in the current market, 46% have already sold subject to contract or gone under offer.
In contrast, just 37% of period properties have already found a buyer, whilst just 27% of modern homes have been snapped up.
It’s clear that whilst market conditions are improving, buyers remain constrained by affordability restrictions largely due to the higher cost of obtaining and repaying a mortgage.
With Rightmove estimating that the average fixer-upper sells for an average discount of 12%, it’s clear that the nation’s homebuyers are turning to project properties to help alleviate the initial high cost of homeownership.
In contrast, it’s estimated that period properties command house price premiums of up to 180% in England, whilst the average new-build carries a 49% premium, meaning that modern homes are also more expensive.
The bad news? Fixer-upper homes are hard to come by, accounting for just 5% of all homes currently listed for sale, whilst modern homes and period properties are more widely available accounting for 10% and 28% of current market stock respectively.
“The market is certainly heading in the right direction and there’s an overarching air of optimism that 2025 will bring a more settled landscape, certainly with respect to mortgage affordability," Yopa’s National Franchise Director, Steve Anderson, explained.
However, he added, "As it stands, buyers continue to face far higher borrowing costs than they’ve become accustomed to in recent years and it’s clear that affordability remains a sizable obstacle when it comes to the pursuit of homeownership.
"So it’s no surprise that fixer-upper homes are in high demand at present, as they allow a lower initial cost when climbing the ladder, with the ability to spread the cost of improving them over a period to suit each individual buyer's timeframe and financial foundation.”
