Average UK renovator expects to make £30k profit

The UK is known as a nation of property lovers, which may help explain the popularity of home renovation projects on the television. However, these shows may have inspired many to turn to property renovation themselves – and these people expect a healthy profit for the work they have put in.
 
New research conducted on behalf of mortgage and loan provider OceanFinance.co.uk reveals that of the one in ten (12%) people in the UK who have purchased a house as a renovation project, the average profit they have made or expect to make for their efforts is between £20,001 and £30,000. This was calculated by subtracting the purchase price of the property and the cost of the renovation work from the value of the house now.
 
While this much money is no small change, some home renovators are expecting to make much more. More than one in 20 (7.8%) of these respondents claimed they had either pocketed or hoped to make a profit of more than £100,000.
 
This profit may be seen as just reward for a lot of hard work. While the majority (78%) of the people who have taken on a renovation project have completed it, more than one in five (22%) admitted it was still underway.
 
Many respondents also revealed that the project had not been as easy to complete as they were expecting. In fact, nearly half (46%) of home renovators admitted the work involved had been harder than they anticipated.
 
However, despite this the end result may have been worth it for most, as nearly two-thirds (63%) of people who had taken on a property renovation scheme said they would do it all again.
 
People aged between 25 and 34 years old were found to be the most likely to have invested in a property in need of improvement, with nearly one in five (19%) of this age group revealing they have done so. This might be because this is the age when people are thinking about taking their first steps on the property ladder, and buying somewhere that needs a facelift could save them some money.
 
Londoners were also the most likely to take on a renovation project (20%). With house prices in the capital so much higher than the average across the rest of the UK, buying a house or flat that needs doing up might save residents money.
 
Spokesman for Ocean Finance Ian Williams says: “Taking on a renovation project can be a daunting prospect, but not only could it help you bag your dream home for a bargain price; you may end up making a profit too.
 
“Of course, people should always make sure they carefully budget so that they don’t end up spending more than they can afford on doing up the property, and that they don’t take on a project they can’t manage. House prices can go up and down, as can mortgage rates, and this may have an impact on the project’s budget – but if all goes well, when the work is finished not only will they be left with a sense of achievement, but hopefully a healthy profit as well.”