4 reasons you should consider buying a fixer upper

Spic, span and sparkling? No. Some home buyers pass up immaculate, modern properties and willingly head for the shabbiest house in the search results. If you’re on the fence about purchasing a fixer upper, here are four reasons why a wreck could be the right choice.

1. Your initial purchase will be cheaper

Homes for sale that are pristine and newly renovated carry a premium, costing purchasers more. If you’re working to a budget, considering a fixer upper will save you money. How much? Rightmove found homes that need work are listed for sale with a 12% discount, which could save buyers an average of £44,634.

Buying at a discounted price will become more important from 1st April 2025, when the stamp duty thresholds change and most purchases will incur a more costly tax bill. The cheaper the property, the lower the stamp duty, with fixer uppers representing an additional saving.

It’s worth mentioning that the state of the property will affect whether you’ll get a mortgage. Some lenders will not loan against homes that are dilapidated. An absence of central heating, running water and a working kitchen can be red flags, as are the presence of Japanese knotweed, bamboo, asbestos and damp. Also be mindful of the property’s construction – anything that’s not considered ‘standard’, such as concrete, steel framed or prefabricated, may cut off your home loan options. 

2. There’s the potential to add value

Many people who buy fixer uppers do so to add value and even make money. For this to happen, the sums have to be right. Purchasers need to balance how much they have paid for the property, taking into account stamp duty and fees, with how much they spend on renovations and remodelling. 

If, after the work is complete, the property is worth more than the initial purchase price when it’s combined with the money spent on materials and labour, there will be a profit. People who ‘flip’ properties sell improved dwellings quickly, cashing in on any value they have added. Long-term owners should be able to benefit from the added value when they sell in the future. 

3. You can make improvements as and when money allows

How well you can stomach a dated, unmodernised property will dictate how quickly renovations need to happen. The hardiest of home buyers will have the upper hand. They’ll be able to take their time over improvements, saving for each project and perhaps avoiding the need for a personal loan or second charge mortgage.

Extra money can be saved if the home buyers can undertake as much of the work themselves as possible. YouTube is great for have-a-go enthusiasts but we always urge people to use professionals when it comes to gas, electricity and plumbing. 

4. You can create your dream home

Are you a home buyer who wants everything ‘just so’? If that’s the case, moving into a completed property may mean unpicking someone else’s taste in order to apply your own. A fixer upper offers the opportunity to strip back and start with a blank canvas.

If your vision is ambitious – perhaps knocking down internal walls, converting a loft or extending outwards and upwards – it’s wise to check with the local planning department about what might need planning permission and the likelihood of this being granted. 

Before you go out and buy a sledge hammer, give us a call. We’ll use our property knowledge and fixer upper experience to guide your purchasing decisions.