A recent survey conducted by Nationwide Building Society has uncovered that a significant majority of first-time buyers are opting for properties that require renovation work, enabling them to secure their dream homes at a more affordable price. According to the findings, 66% of first-time buyers purchased a "doer-upper" to save on the property price, while 93% have undertaken at least one renovation or DIY project since moving in.
Renovation Efforts Exceed Expectations
Among those who embarked on renovation projects, 75% reported completing more work than initially anticipated. Of this group, 25% said they had done much more than expected, and 18% tackled major structural projects such as knocking through walls, building extensions, or converting lofts to bring their property up to standard.
Benefits of Choosing a Fixer-Upper
Despite the additional effort, many first-time buyers reaped rewards. Over two-fifths (41%) were able to buy in their preferred location, and 30% appreciated the ability to shape the home to their tastes over time. Additionally, 22% future-proofed their homes for plans like starting a family, and 23% reported that renovation work helped increase their property's value.
Enthusiasm for DIY remains high, with 89% of first-time buyers describing themselves as confident, excited, or willing to take on such projects. One in five (20%) specifically chose a property needing work because they enjoy DIY and renovation.
Financial Commitments and Spending
Six in ten (60%) first-time buyers have spent over £2,500 on DIY and home improvements since moving in, with 29% exceeding £5,000. Common projects include painting and decorating (57%), bathroom improvements (49%), kitchen upgrades (48%), new flooring (46%), and general repairs (45%). Notably, 18% have undertaken major structural changes. According to Nationwide, a loft conversion or extension with a large double bedroom and bathroom can increase the value of a typical three-bedroom home by up to 24%, though net gains depend on individual circumstances.
Financial planning for renovations is common: 62% of first-time buyers factored DIY or renovation costs into their savings when building a deposit, while 21% borrowed more on their mortgage to fund improvements after moving in.
Regional Variations
The survey highlighted regional differences in the propensity to buy cheaper homes needing renovation. The North East led with 77%, followed by London (70%), the East of England (69%), Wales (69%), and the North West (67%). At the lower end, Scotland had 52%, and Northern Ireland 61%. Similarly, the percentage of first-time buyers who performed more DIY than expected varied, with the North West at 83% and the South East at 68%.
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. Although there’s 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."
The research was conducted by Censuswide on behalf of Nationwide, surveying 2,000 first-time buyers across the UK in April.
