Renters are increasingly eager to purchase fixer-upper properties as a more affordable route to property ownership, according to property site Rightmove (RMV.L).
The attraction lies in the significant price difference — fixer-uppers are currently priced, on average, 12% lower than non-renovated properties.
The average asking price for a property in need of work stands at £327,224, compared to £371,858 for a home in move-in condition. That’s a saving of £44,634 — a considerable amount, especially for first-time buyers trying to enter the housing market.
According to the findings, 68% of renters are now willing to take on homes in need of renovation, a stark contrast to 54% of current homeowners.
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Rental prices, which have surged by 61% over the past decade, are contributing to the shift. The average advertised rent outside London is now £1,344, up from £832 in 2014, putting increased financial pressure on renters.
As a result, many are looking to the fixer-upper market as a viable means of getting onto the property ladder, particularly in areas where housing costs are highest, such as the South East, London, and the West Midlands.
Tim Bannister, Rightmove’s property expert, said: “Tackling a renovation project could be a more affordable way to get on the ladder and make a space your own. While they do require time and planning, many find the process worthwhile, as it can offer both financial benefits and the satisfaction of creating a home that truly fits their needs.”
The desire to save money is the primary motivator for renters considering a fixer-upper, with 73% of respondents citing the lower price as the main reason for their interest. Homeowners, by contrast, are generally more motivated by the prospect of personalising a home, with 73% choosing fixer-uppers for the opportunity to create their ideal living space.
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The trend is further fuelled by the potential for long-term savings. Many renters and homeowners interested in renovation projects are motivated by the possibility of improving energy efficiency.
According to Rightmove’s Energy Bills Tracker, the difference in energy costs between homes with higher and lower energy efficiency ratings can be substantial. For example, a three-bedroom semi-detached house with an energy performance certificate (EPC) rating of F can incur annual energy bills of £4,323, while the same property with an EPC rating of C would cost just £1,657 — a saving of £2,666 per year.
