Are you dreaming about purchasing a doer-upper and transforming it into your dream home? We look at the pros and cons of purchasing a renovation project…

The prospect of buying a fixer-upper home is exciting for many: for the renter, it’s a way to get their foot on the property ladder, for interiors fans it’s a way of scratching their renovation itch, and for existing homeowners, it’s a way of creating their perfect forever home. For me, when my husband and I bought our 1930s doer-upper five years ago, it was the chance to upsize and create a family home.

“You have the freedom to customise your home to your exact preferences,” says property and construction expert Thomas Goodman, at MyJobQuote.co.uk. “From the layout and design to the materials and finishes, you can create a space that truly reflects your personal style. Finally, when doing up a home, you will experience a great sense of accomplishment in transforming a neglected property into a beautiful house. The process of renovating can be incredibly rewarding and fulfilling.”

And, if done right, the benefits not only mean a great home to live in, but also the potential of walking away with a pretty profit once it’s time to move on. However, it’s certainly not an easy process (to put it mildly).

Key considerations

There are budget, time and emotional considerations to be aware of. Plus, with the post-Covid rise in the cost of materials, the rise in interest rates, let alone changes brought in by the Autumn Budget (the UK government’s yearly financial statement that outlines the country’s planned spending and revenue, as well as the state of the economy), it’s important to ask yourself whether it’s worth it – figuratively and financially.

According to a recent consumer survey of more than 34,000 home-movers from the UK’s largest property website, Rightmove, the average asking price of a fixer-upper home is £327,224, which is 12% (£44,634) lower than the current national average asking price of £371,858 for all types of home.

“A home in need of refurbishment could be much cheaper to buy than a new build, and will likely also cost less than a comparable second hand home that’s modern and well cared for,” says Phil Spencer, TV presenter, property expert and founder of the property advice website Move iQ. “So, if your property search is focused on fixer-uppers, you should be able to afford somewhere larger, or in a better area, than if you only search for the finished article.”

Doer-upper renovation costs

However, as Andrew Boast, property expert and founder of SAM Conveyancing, points out – while many purchasing a fixer-upper might see potential savings on the purchase price, they often underestimate the full range of renovation costs.

“For example, many older homes have outdated electrical wiring that may not meet current safety standards or be able to handle modern electrical demands, while old or inefficient windows can be expensive to replace, cause drafts, increase your energy bills, and even compromise your home’s security.”

The cost for labour and materials can easily run up and may add an extra 20-30% on your costs, especially if structural issues such as plumbing or electrical systems need attention or, worse, completely replacing. “Even minor fixes, like freshening up the walls with new paint or updating appliances, can become unexpectedly expensive if this needs to be done in every room,” continues Andrew.

“Add on the constantly fluctuating cost of materials and the potential need for specialised contractors, and your savings can be outstripped by the renovation expenses, which may end up exceeding the cost of buying a property in better condition.”

Create a realistic budget

Even worse, you may end up overcapitalising; where your upgrades and improvements, no matter how swish, exceed what buyers will likely recoup in a future sale. Therefore, before going ahead with a purchase, create a detailed, realistic budget that includes the cost of materials, labour and potential unexpected expenses, with a contingency budget of around 30%.

Of course, there are some jobs you may be able to do around the property – my husband and I seemed to spend a lot of time sanding the skirting boards. However, it’s important to assess your DIY skills and be realistic with the amount of time that you can dedicate to the project. Plus, when it comes to complex tasks such as plumbing, electrical works and structural repairs, we always recommend hiring a professional.

Do your research about the property

It’s also vital before signing on the dotted line that you do your research about the doer-upper property. As Phil explains, “Renovation work is notorious for overrunning and going over budget, and it can be risky – sometimes it’s only when you start work that you discover hidden problems that turn out to be expensive to solve. That’s why it’s essential to get a thorough survey done on any fixer-upper you’re considering buying, and to speak to a few builders to get a good idea of what your project is likely to cost.

“Don’t forget that it can be more difficult to get a mortgage on a fixer-upper. Some properties are considered ‘unmortgageable’ if they’re not deemed habitable – i.e. with a functional kitchen and bathroom – so make sure you use an independent mortgage broker to help you evaluate your finance options.”

Think about timings

And if money is not an issue, time is the next big consideration. “A crucial factor often overlooked by buyers is the time commitment involved in renovating a property,” says Andrew. “Unforeseen issues, permit delays, waiting for planning permission to be secured, and even contractor schedules can quickly turn a project that looks like it will take just a few months into a year-long slog, sometimes longer.

“This can be especially troubling for buyers who need to live elsewhere during renovations if the home is not in a liveable state – with delays meaning more months covering both a mortgage and rental costs, which can stretch even the most robust of budgets. Add in storage costs and the cost of transport, and just one month of delays could end up costing you thousands.”

The Autumn Budget’s 2% increase in the UK’s second home surcharge, raising it from 3% to 5%, will also affect renovators looking to live in one place while renovating another.

A rollercoaster of emotions

Finally, the whole process of renovating a home can be very emotionally draining. “Dealing with contractors, making design decisions, and managing unexpected challenges can be overwhelming,” says Thomas.

Andrew agrees, and adds, “Taking on a fixer-upper project also comes with a lot of stress and takes a lot of organising to get done. From managing budgets, vetting contractors and coordinating timelines, to solving problems as they arise, managing this kind of project can be all-consuming, especially for buyers new to the renovation process. Add on unexpected issues with structural integrity, or hidden hazards like mould or asbestos, and the stress can compound, making a ‘simple project’ more mentally taxing than you might expect.”

Remember it’s a long-term commitment

Ultimately, deciding whether to take on the challenge of a doer-upper is a personal choice. “Remember that buying and doing up a fixer-upper is a long-term commitment, and not everyone wants to be constrained in this way,” says Phil. “Moving into a new build should be a breeze in comparison, and if ever your situation changes and you need to move, it is easier to sell a new build than a half-finished renovation project.”

It will all depend on what stage in life you’re at, how willing you are to live with the mess of renovation work, and how much you want to create a home perfectly tailored to your needs.

He concludes, “Fixer-uppers can be a huge source of pride and frustration – often both – but they are never a quick fix.” So, if you’ve read all this, and still plan on going for that doer-upper, we wish you the best of luck, and be sure to send us updates. Happy renovating!

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