Over a third of prospective homeowners in the UK could only afford to purchase a property if it needed renovating according to a report on propertywire.co.uk
Research undertaken by price comparison site Confused.com found properties that required renovation work usually had a reduced sale price compared to other properties in the same location that were on the market, with an average saving of around £44,000.
According to the article the findings show that thirty eight per cent of homeowners said that they had actually bought a property in need of work as it had saved them money on the purchase and forty per cent said that they would consider doing so.
Gareth Lane, head of home insurance at Confused.com said “As house prices seem to be continuing to rise, it would appear that more and more people are resorting to buying properties that need renovation.”
However, of those who had ventured into a renovation project forty five per cent had overspent on their intended budget by around £3,000. The average renovation costs totalled over £33,000 with some going over £50,000 leaving eight per cent realising that they couldn’t afford to carry out the work and 1 in 10 living for more than twelve months on a so called ‘building site’ before they could commence work on their home. Indeed over a fifth admitted that they would never renovate a property again. Gareth Lane said that “Deciding to renovate a property is a big decision and often more expensive than first anticipated”.
But the research did find that for nearly a fifth of those who had completed the work on their property had made a profit of between £25,000 to £50,000.
One of the more concerning aspects to the research is that it found forty one per cent of those who carried out such a renovation project failed to inform their property insurer which could invalidate the cover. You should look to ensure that your property has the appropriate buildings renovation insurance cover whilst undergoing any renovation work.
If you are renovating a property whether to let out, sell or move into, then why not call Click4quote.com on 01206 655 899 for a renovation quote today.