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Do-er uppers bought by cash-strapped Brits

Christina Hoghton
Written By:
Posted:
22/02/2016
Updated:
21/02/2016

When buyers go for a property that is in need of renovation, it’s usually all they can afford

It is often money desperation that leads to Brits buying homes in needs of renovation, rather than a passion for home improvements.

And many don’t have the money to actually carry out the work needed, according to a study from Confused.com.

The website found that than a third (35%) of homeowners who bought a property that needed renovation did so because it was the only way that could afford to buy a home.

Nearly one in 10 (8%) renovation homeowners couldn’t afford to do the work to it, while the same number admitted to living on a ‘building site’ for a year or more.

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For those who get it right, buying a renovation proeprty can be financially rewarding, as nearly one in five (19%) have made a profit of between £25,000 – £50,000 from a successful renovation project. On average, homeowners who have bought a property that needed renovation reckon they saved themselves £44,037 on the purchase price.

Gareth Lane, head of home insurance at Confused.com said: “Of those that could afford make home improvements it’s worrying to note that many haven’t let their insurers know. You should always tell your home insurer about major works that is being done to your property or if it is not in a good state of repair. Your home insurer also needs to know about home renovations that add value, such as a loft conversion, for example.

“When you have a home insurance policy you must disclose any changes that are made the property, otherwise you may be at risk of invalidating your home insurance policy or undervaluing the property and not being fully insured.”