Financial website This Money has revealed that 35% of residents in the UK are buying houses that need repairs because it is the only opportunity they have to get a step onto the property ladder. Their data reveals the:
- Average UK house price (as of Jan 2016) is £196,829.
- Average cost of property that needs work is £152,792.
- Average cost of renovation is £33,039.
- The cost of buying a home and renovating it themselves is £185,831, resulting in a saving of £10,998.
But the question is, are we saving any money? 10% of the buyers end up living in an incomplete home, whilst 45% of buyers spend more than their initial budget for the project. So, is it really worth it?
Bedroom furniture specialists Oldrids & Downtown have looked into this further to discover the key trends in home renovation, so that you can make the most informed decision when you come to make your next purchase.
In further research, Barbour ABI aimed to identify trends in the home improvement market. During which, they discovered which UK locations were both the most – and least – likely to invest in a home improvement project.
Most likely districts for home improvement
- Kensington and Chelsea
- Hammersmith and Fulham
- South Bucks
Least likely districts for home improvement
- Stoke on Trent
- West Dunbartonshire
Factors influencing cost
A home improvement project can be a huge investment, so it is wise to consider some of the factors that can influence the cost. These can include:
The size and style of the home
The size of the property is a factor to consider for a renovation project; the larger the property, the more likely it is that the project will be larger and therefore cost more. Not only that, but the style and age of the property should also be considered; the older the property, the more likely there are to be repairs.
The postcode of the home
Just like home insurance and house prices, the postcode of the property can impact the cost of renovation.
Other features of the home
As previously mentioned, the size of the property can impact the cost of renovation, so it is worth considering how the number of bedrooms, bathrooms and garages will impact the project when gauging affordability.
Estimated costs for renovation
Any home improvement project can seem like a daunting project to invest in, but if you break it down into smaller tasks it becomes a more manageable project to tackle. A renovation project isn’t a one-size-fits all task. It is worth considering the below checklist for a quick calculation before diving into the project, but remember to bear in mind that there are factors that are unique to each property that could affect this.
|Task||Estimated cost on average 3-bed home*|
|Adding a bathroom||£2,500|
|Adding a kitchen||£4,500|
|Adding central heating||£5,000|
|Removing dry rot||£1,000|
|Fixing collapsing ceilings (related to damp)||£500 per room|
|Replacing the roof||£3,000|
|Replacing roof tiles||£200|
*Estimate supplied by Homebuilding & Renovating
Trending in home improvement
Bathrooms 365 have published research on the home improvement market which reveals that the new building projects from the government have been creating new opportunities for the home improvement industry. This comes as a boost for the market, following the forecast of 60 B&Q closures. However, with the interest in home improvement steadily increasing, as are sales, which contributes to a healthy progression in the industry.
The study noted key trends in home improvement and renovation:
- The motive of renovation is still profit by increasing the home’s value
- Home improvement is still desirable, but homeowners have to save
- Desire for an increased number of bathrooms in the home
- Improvement to the design of the bathroom
- Improvement of layout and features to be more environmentally conscious