A recent survey has found that two-thirds of first-time buyers have purchased a property in need of renovation, commonly known as a 'doer-upper', as a strategy to reduce the initial purchase price. The study, conducted by Nationwide, polled 2,000 individuals who had recently taken their first step onto the property ladder.
Renovation Work Exceeds Expectations
According to the findings, nine out of ten first-time buyers had completed at least one renovation or DIY project since moving into their new home. Among these, three-quarters carried out more work than they had initially anticipated. Specifically, 25 per cent of respondents reported undertaking significantly more work than expected, while 18 per cent took on major structural projects to bring their property up to standard.
Financial Investment in Improvements
The survey also highlighted the financial commitment involved in these renovations. Six in ten first-time buyers spent over £2,500 on home improvements, with 29 per cent investing more than £5,000. Despite these costs, many buyers view the 'fixer-upper' approach as a savvy financial decision, allowing them to achieve their dream home at a reduced overall cost.
Nationwide described opting for a fixer-upper as a 'savvy choice', enabling buyers to purchase in better locations and add value to their homes relatively quickly. The research found that 41 per cent of respondents were able to buy in their preferred location, and 30 per cent appreciated the ability to shape the home to their tastes over time.
Planning and Financing Renovations
Nearly two-thirds of first-time buyers factored DIY or renovation expenses into their savings plans while building their deposit. Additionally, more than a fifth borrowed extra on their mortgage to retain savings for post-move improvements.
Carlo Pileggi, Nationwide's head of mortgage products, commented: 'For many first-time buyers, opting for a cheaper property that needs work is a deliberate and savvy choice rather than a compromise. By taking on a home requiring renovation, they are not only able to get onto the property ladder in the location they want, but they can shape it to their own taste while adding to its value.'
He added: 'Although there's a real enthusiasm amongst first-time buyers to roll up their sleeves, our research suggests many have had to undertake more work than they initially intended. This is where planning and having the right support can make a real difference.'
