The real cost of renovating a home
In a recent study, This is Money revealed that 35% of UK residents are opting to buy a home that needs a renovation because it is the only way that they can afford to get onto the property ladder. According to their data, the:
- Average UK house price (as of Jan 2016) is £196,829.
- Average cost of property that needs work is £152,792.
- Average cost of renovation is £33,039.
- The cost of buying a home and renovating it themselves is £185,831, resulting in a saving of £10,998.
The main question is: is it really worth it? The survey also revealed that 10% of buyers end up living in an unfinished home, whilst 45% of those who finish renovating end up exceeding their initial budget.
With all of that in mind, are these home buyers actually saving money? Bedroom furniture specialists Oldrids & Downtown have put together this research on the real costs of renovating a home to help you make an informative decision when you next come to make your purchase.
Locations
In some further research, Barbour ABI in Home Improvers of Great Britain 2016, were able to look into some of the trends within the home improvements market. They identified locations that were most and least likely to carry out renovations in the UK.
Most likely districts for home improvement
1. Kensington and Chelsea
2. Westminster
3. Uttlesford
4. Hammersmith and Fulham
5. South Bucks
Least likely districts for home improvement
1. Blackpool
2. Stoke on Trent
3. West Dunbartonshire
4. Redditch
5. Glasgow
Cost factors
There are multiple factors to take into account when renovating a home, and most of them can affect the price of the project. These can include:
The size and style of the home
The size of your home can influence the price of renovation, the greater the number of storeys, the more likely you are to pay more for renovating. Not only that, but the style and age of the home can contribute to the cost. The older the home, the more likely there are to be repairs.
The postcode of your home
Your postcode not only affects home insurance and house prices, but can also impact renovation prices.
Other features of the home
You should also take into account the number of bedrooms, bathrooms and even the garage, as these can all have an impact on the cost.
Homebuilding & Renovating has a calculator to give a guide to the cost.
An estimated cost
It can be quite daunting looking at a renovation project as a whole, so most projects can be broken into smaller projects. It is worth considering how much each smaller task is going to cost so that you can scale how much it will cost you overall. Use the following checklist to assist you with your calculation but remember that the size, style, age and postcode can change this.
Task - Estimated cost on average 3-bed home*
Adding a bathroom - £2,500
Adding a kitchen - £4,500
Adding central heating - £5,000
Removing damp - £2,000
Removing dry rot - £1,000
Fixing collapsing ceilings (related to damp) - £500 per room
Plastering - £3,000
Replacing the roof - £3,000
Replacing roof tiles - £200
Replacing drains - £800
Replacing windows - £500
Replacing doors - £700
Wiring - £3,000
*Estimate supplied by Homebuilding & Renovating
Key trends
An article by Bathrooms 365 revealed that new build projects by the government has created opportunities for the home improvement market. This research in February 2016 followed a time that had been difficult for the home improvement industry, with 60 B&Q stores having been forecasted for closure. Now the home improvement market increases, the online sales are showing an encouraging progression.
The study noted key trends in home improvement and renovation:
- The motive of renovation is still profit by increasing the home’s value
- Home improvement is still desirable, but homeowners have to save
- Desire for an increased number of bathrooms in the home
- Improvement to the design of the bathroom
- Improvement of layout and features to be more environmentally-conscious