A new survey from Nationwide Building Society reveals that 66 per cent of first-time buyers are opting for 'doer-upper' properties—homes requiring renovation—to reduce their purchase price. The research indicates that 93 per cent of new homeowners have completed at least one renovation or DIY project since moving in.
However, three-quarters (75 per cent) admitted they carried out more work than initially anticipated. A quarter (25 per cent) did 'much more' than expected, and 18 per cent tackled major structural projects to get their property in order. Despite the extra effort, the fixer-upper route often allows buyers to achieve their dream home at a reduced cost.
Among those surveyed, 41 per cent secured a property in their preferred location, while 30 per cent valued the chance to gradually shape the home to their personal tastes. More than a fifth (22 per cent) future-proofed their home for plans like starting a family, and 23 per cent said buying a renovation property helped increase its value.
Enthusiasm for DIY is high: 89 per cent of first-time buyers described themselves as confident, excited, or willing to take on projects. A fifth (20 per cent) chose a property needing work because they enjoy DIY and renovation.
Spending on improvements is significant: 60 per cent of first-time buyers have spent over £2,500, with 29 per cent exceeding £5,000. Common projects include painting and decorating (57 per cent), bathroom improvements (49 per cent), kitchen improvements (48 per cent), new flooring (46 per cent), and general repairs (45 per cent). Nearly a fifth (18 per cent) have undertaken structural projects like knocking through walls, building extensions, or loft conversions.
Nationwide notes that a loft conversion or extension with a large double bedroom and bathroom can increase a typical three-bedroom home's value by up to 24 per cent. However, net financial gains depend on individual circumstances.
Financial planning is key: 62 per cent of first-time buyers factored DIY or renovation costs into their savings when building a deposit, and 21 per cent borrowed more on their mortgage to fund improvements after moving in.
Carlo Pileggi, Nationwide’s head of mortgage products, said: '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.'
The survey, conducted by Censuswide for Nationwide in April, polled 2,000 first-time buyers across the UK. Regional data shows the highest proportion of buyers choosing cheaper renovation homes is in the North East (77 per cent), followed by London (70 per cent), East of England (69 per cent), and Wales (69 per cent). The lowest is in Scotland (52 per cent).
Regarding unexpected DIY work, the North West tops the list at 83 per cent, followed by the North East (80 per cent) and London (78 per cent). The South East and Northern Ireland share the lowest at 68 per cent each.
