A survey from Nationwide found that two-thirds (66%) of first-time buyers bought a cheaper home because it required DIY or renovation work, with 19% saying it was significantly cheaper.
Since then, they’ve taken on more work than they anticipated, however, with 93% completing at least one DIY project since moving in and three-quarters carrying out more work than they expected when they bought the property.
Carlo Pileggi, Nationwide’s head of mortgage products, said: “For many first-time buyers, opting for a cheaper property that needs work is a deliberate and savvy choice rather than a compromise.
“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.”
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Regional differences
Taking on a ‘project’ was most likely to happen in the North East and least likely in Scotland. For many, choosing a fixer-upper was a strategic decision rather than a compromise.
London is also a prime choice for fixer-uppers, with 70% of those buying there expecting to do work to the property. This dropped to 61% in Northern Ireland and just 52% in Scotland.
The extra work comes at a cost, though, with six in 10 first-time buyers saying they have spent more than £2,500 on DIY and home improvement projects since moving in, with 29% spending over £5,000.
Small projects the most popular
While nearly one in five (18%) first-time buyers have taken on serious structural renovation, smaller projects remain the most popular for new homeowners.
Some 57% did painting and decorating, with 49% opting for bathroom improvements. Meanwhile, 28% did plumbing or electrical work and 22% took on projects to improve energy efficiency.
Mortgage support is planned
Many first-time buyers decide to borrow more so they can do these projects.
Nearly two-thirds (62%) factored DIY or renovation expenses into their savings when building their deposit. More than a fifth (21%) borrowed more on their mortgage so they could keep savings back to fund improvements after moving in.
Pileggi said: “Although there’s a real enthusiasm amongst first-time buyers to roll up their sleeves, our research suggests many have had to undertake more work than they initially intended. This is where planning and having the right support can make a real difference.
“Nationwide’s Helping Hand offers eligible buyers the opportunity to borrow more, helping them plan renovation costs and feel more in control as they turn a fixer-upper into the home of their own.”
Making the most of their money
A recent study by Rightmove found that fixer-uppers were 12% cheaper than fully ‘done up’ homes, and the Nationwide study showed that those who choose them are looking for value.
Respondents said they were purchasing a fixer-upper to buy in the location they wanted (41% said this was the main reason), to shape their home to their own tastes over time (30%), to increase the value of the property (23%), or to prepare the home for future plans, such as starting a family (22%).
