“For many first-time buyers, opting for a cheaper property that needs work is a deliberate and savvy choice rather than a compromise,” said Carlo Pileggi (pictured right), head of mortgage products at Nationwide.
“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.”
Mary-Lou Press, president of industry body NAEA Propertymark, however, noted that while purchasing a property requiring work can allow buyers to secure a home in their preferred location and build long-term value, prospective buyers must have a clear understanding of the costs, timescales and disruption involved before proceeding.
“Research showing that many buyers ended up carrying out more work than expected highlights the need for thorough property surveys, realistic budgeting and access to trusted professional advice throughout the buying process,” she said.
“Buyers should also factor in rising costs for materials, labour and potential structural issues that may not be immediately visible when viewing a property. Encouragingly, many buyers are planning ahead financially and considering renovation costs alongside their deposit and mortgage arrangements. However, affordability pressures continue to stretch many households, reinforcing the need for greater housing supply and more affordable homeownership options across the UK.”
