A new consumer survey of over 34,000 home-movers from Rightmove reveals that 68% of renters see fixer-uppers as a more affordable route to property ownership, with an average 12% discount on these homes.
The biggest motivator for renters wanting to purchase a fixer-upper is the opportunity to buy at a lower price (73%) and for home-owners it is to create the perfect home (73%).
The average asking price of a fixer-upper home is £327,224, which is 12% (£44,634) lower than the current national average asking price of £371,858 for all types of home.
Rental price growth has increased by 61% over the past ten years, intensifying the financial pressures on renters and likely driving many to consider more affordable fixer-upper properties as a pathway to ownership.
For renters a £44,634 discount compared to average property prices could be a significant advantage. This cost difference could be especially impactful in areas where property prices are high, like the South East and London, making it easier for renters to transition to ownership.
Improving energy efficiency to reduce energy bills (57%) is an important motivator to renters and home-owners who are interested in buying a fixer-upper to make future cost savings from living in a sustainable home.
Rightmove’s Energy Bills Tracker shows that the difference in bills between homes with higher and lower energy efficiency ratings can be significant.
The average energy bill for a three-bedroom semi-detached house with an EPC rating of F stands at £4,323 per year, compared with £1,657 for the same house with an EPC rating of C - a difference of £2,666.
Potential buyers in the South East, West Midlands, and London are the most open to purchasing a fixer-upper property, with affordability likely driving this trend in regions where property prices tend to be higher.
Tim Bannister, Rightmove’s property expert says: "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.”
