Buyers looking for a renovation project are paying substantial sums before any building work begins, with derelict properties commanding typical asking prices approaching £240,000 in parts of Britain.
Analysis from property portal LandSale puts the typical asking price for a derelict property across Britain at £122,500, with significant regional differences.
The South East is the most expensive region, where the typical asking price reaches £237,500 despite properties coming with an average of just 1.42 acres of land.
In contrast, derelict properties in the South West have a typical asking price of £67,500, the lowest identified by the research.
REGIONAL DIVIDE
The North West is the second most expensive region at £213,750, although properties there come with substantially more land, averaging 10.37 acres.
Typical asking prices stand at £200,000 in the East Midlands, £195,000 in Wales and £150,000 in Yorkshire and the Humber.
Scotland is among the cheapest locations for buyers prepared to take on a major renovation project, with a typical asking price of £75,000.
Across Britain, the average plot accompanying a derelict property extends to 6.26 acres.
HOUSING SUPPLY
LandSale argues that bringing viable derelict buildings back into use could make a contribution to increasing housing supply alongside the construction of new homes.
Adam Morris, Founder of LandSale, says: “Paying close to £240,000 for what may essentially amount to a derelict shell or, in some cases, little more than a pile of bricks and a plot of land, certainly demonstrates just how valuable property opportunities remain in parts of Britain.
“But derelict properties shouldn’t necessarily be viewed as housing that has simply fallen into disrepair. For the right buyer, they can represent an opportunity to acquire land in a desirable location, breathe new life into an existing building and create a home that might otherwise be extremely difficult to find.”
Morris warns that the purchase price is only the starting point, with buyers also needing to factor in renovation costs, planning requirements and the condition of the building.
He adds: “They may not provide a silver bullet for Britain’s housing shortage, but bringing viable derelict properties back into use certainly has a role to play, particularly when every additional home makes better use of land and buildings that already exist.”
Derelict 16th century Herefordshire cottage held together by will power sells at auction
Main picture: A tumble-down local stone-built Herefordshire cottage not lived in since the 1950’s presenting the chance of a lifetime for a new owner has sold at auction.
The grade II listed farmhouse building, described as a ‘renovation challenge’, was listed for sale with Paul Fosh Auctions with a guide price of £85,000.
The far from sold lot which had to be viewed with an eye of optimism sold for £95,000 after attracting eight bids from four separate bidders
Brook Farm near Longtown, in the wilds of rural Hereford, dates back to the sixteenth century but has been abandoned and empty for almost eighty years.
