Nationwide Building Society has issued a warning that more than a quarter of first-time buyers have spent over £5,000 on do-it-yourself projects and home improvements. As the challenge of affording a home continues to grow, many first-time buyers are turning to fixer-upper properties to achieve their dream of homeownership.
Fixer-uppers come with hidden costs
While these homes are often more affordable in terms of the initial deposit, they can bring substantial additional expenses to bring them up to a desirable living standard. A survey of 2,000 first-time buyers conducted by Nationwide found that two-thirds (66 per cent) opted for a cheaper home specifically because it required renovation work, with 19 per cent saying it was significantly cheaper than other options.
Majority undertake multiple projects
Since moving in, 93 per cent of first-time buyers have completed at least one project, and 34 per cent have carried out many projects. However, these improvements come at a cost. Sixty per cent of first-time buyers have spent more than £2,500 on DIY and home improvement projects since moving in, with 29 per cent spending over £5,000. Common projects include painting and decorating, kitchen and bathroom upgrades, new flooring, and general repairs.
Carlo Pileggi, Nationwide’s Head of Mortgage Products, commented: “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.”
He added: “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.”
