Demand for renovation-ready homes is running well ahead of the general housing market as affordability pressures push more buyers towards lower-cost properties with potential to add value.
According to new analysis from The Property DriveBuy across England, there are an estimated 601,525 homes currently listed for sale, of which around 223,280 have been sold subject to contract (SSTC) – giving an overall buyer demand level of 37.1%.
But for fixer-upper homes, the share already under offer rises to 50.2%, highlighting a growing appetite for properties requiring significant renovation work.
The trend is most pronounced in the North West, where 52.9% of project homes have already found buyers, followed by the South East (52%); the West Midlands (51.8%); the East of England (51.3%) and Yorkshire and the Humber (51.1%).
SCARCE SUPPLY
Fixer-uppers, however, remain a relatively scarce segment of the market. They account for just 5.4% of all homes listed for sale in England, with the highest concentration in Yorkshire and the Humber (6.8%); the South West (6.7%) and the North East (6%).
In absolute terms, the South East leads the market with more than 4,000 fixer-upper listings – almost a fifth of the national total – followed by London (15.8%); the South West (15.4%) and the East of England (11.3%).
POPULAR ENTRY POINT
Steve Foreman (main picture, inset), Founder and Chief Executive of The Property DriveBuy, reckons that project homes are becoming an increasingly popular entry point for first-time buyers struggling with high borrowing costs.
He says: “Fixer-uppers offer the potential to buy below market value and add equity over time. It’s a chance not only to save at the point of purchase but to build long-term value.”
ACCIDENT NOT INTENT
Foreman adds that many buyers discover renovation projects by accident rather than intent.
“Often, it’s the unexpected listings that generate the most excitement – where buyers see potential and are inspired by the idea of transforming a property into something uniquely theirs,” he says.
