Rightmove plc

11/13/2024 | Press release | Archived content

Renters seek fixer-uppers, with over £40,000 cheaper price tag

Renters seek fixer-uppers, with over £40,000 cheaper price tag

  • A consumer survey from Rightmove of over 34,000 home-movers has revealed that 68% of renters are eager to take on fixer-uppers to help get on the housing ladder, compared to 54% of home-owners
  • A study of available fixer-upper properties on Rightmove reveals that homes in need of renovation are 12%, or £44,634 cheaper than the average property up for sale
  • The average price of a fixer-upper property in Great Britain right now is currently £327,224, compared to £371,858 for a non-fixer upper
  • Rental price growth has increased by 61% over the past ten years, with the average advertised rent outside of London currently £1,344, compared to £832 in 2014
  • Potential buyers in the South East, West Midlands, and London are the most open to buying fixer-upper properties, with affordability likely driving this trend in regions where property prices tend to be higher

A new consumer survey of over 34,000 home-movers from the UK's largest property website Rightmove reveals that 68% of renters see fixer-uppers as a more affordable route to property ownership, with an average 12% discount on these homes.

The biggest motivator for renters wanting to purchase a fixer-upper is the opportunity to buy at a lower price (73%) and for home-owners it is to create the perfect home (73%).

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.

Rental price growth has increased by 61% over the past ten years, intensifying the financial pressures on renters and likely driving many to consider more affordable fixer-upper properties as a pathway to ownership.

For renters a £44,634 discount compared to average property prices could be a significant advantage. This cost difference could be especially impactful in areas where property prices are high, like the South East and London, making it easier for renters to transition to ownership.

Improving energy efficiency to reduce energy bills (57%) is an important motivator to renters and home-owners who are interested in buying a fixer-upper to make future cost savings from living in a sustainable home.

Rightmove's Energy Bills Tracker shows that the difference in bills between homes with higher and lower energy efficiency ratings can be significant.

The average energy bill for a three-bedroom semi-detached house with an EPC rating of F stands at £4,323 per year, compared with £1,657 for the same house with an EPC rating of C - a difference of £2,666.

Potential buyers in the South East, West Midlands, and London are the most open to purchasing a fixer-upper property, with affordability likely driving this trend in regions where property prices tend to be higher.

Rightmove recently launched a new Renovation Calculator, that helps people explore the added value that existing, or planned renovation works might have on a property.

The new Renovation Calculator is an enhancement to Rightmove's Instant Valuation tool. Once people receive an instant valuation of a property's price, they now have the option to add in completed or planned renovation works to that property and see the potential impact on its value:

https://www.rightmove.co.uk/house-value.html

Tim Bannister, Rightmove's property expert says: "Tackling a renovation project could be a more affordable way to get on the ladder and to 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."

Renter motivators to purchase a fixer-upper

Motivators % of renters
Buying a property for a lower price 73%
Creating the perfect home 70%
Improving energy efficiency to reduce future bills 57%
Adding value to a property 47%
Learning new skills 28%

Home-owner motivators to purchase a fixer-upper

Motivators % of home-owners
Creating the perfect home 73%
Buying a property for a lower price 68%
Adding value to a property 64%
Improving energy efficiency to reduce future bills 57%
Preserving a historic or unique property

25%

Retrofit hotspots: areas with the most fixer-upper properties for sale

Area Region % of listings as fixer-uppers currently for sale
Ceredigion Wales 4.2%
Lincoln East Midlands 3.7%
Carmarthenshire Wales 3.0%
Denbighshire Wales 3.0%
Gloucester South West 2.7%
Hastings South East 2.7%
Slough South East 2.6%
Bridgend Wales 2.6%
Luton East of England 2.6%
Merthyr Tydfil Wales 2.5%

ENDS

Notes to Editors:

  • Survey data from Rightmove's consumer survey, with 34,752 responses, conducted between 7th October and 14th October 2024
  • Average energy bill calculations are based on energy consumption data from the EPCs of all homes for sale on Rightmove, combined with the latest gov.uk postcode level energy statistics, factoring in the energy price cap for October 2024

About Rightmove

  • Rightmove has the UK's largest selection of properties for sale and to rent, adds more listings than anyone else, and over 80% of all time spent on property portals is on Rightmove
  • Rightmove's vision is to give everyone the belief that they can make their move by giving people the best place to turn and return to for access to tools and expertise to make it happen
  • People can search Rightmove for residential resale, new homes, rentals, commercial property and overseas properties and use tools and information including getting a Mortgage in Principle, checking local sold prices, property valuations, market trends, maps and schools
  • Customers include the following key groups: estate agents, lettings agents, new homes developers, rental operators, commercial property operators and overseas property agents
  • Using the UK's largest housing datasets, we issue a number of regular reports to track housing market indicators: our monthly House Price Index (established 2002), our quarterly Rental Trends Tracker (established 2015), and a weekly Mortgage Rates Tracker (established 2023). Historical data is available on request
  • Founded in 2000, Rightmove listed on the London Stock Exchange in 2006 and is a member of the FTSE 100 index