Buyers turning towards renovation properties to get onto the ladder

 
Buyers turning towards renovation properties to get onto the ladder

More buyers are being inventive in their bids to get themselves onto the property ladder, according to a new report that shows more people are going for cut price homes that require some renovation before they move in. 

Recently, a study found that the majority of people looking to get themselves a home for the first time are happy to make some sacrifices, including moving away from an area they like or living further away from friends and family than they might otherwise choose to. 

And now, Confused.com has said that more than a third of people (35 per cent) who purchased a house that needed renovation before they moved in, did so because it was the only way they could afford to get their hands on property. 

Of those surveyed, some 38 per cent said they had purchased a home that needed at least some work because it saved them thousands of pounds, while 40 per cent of people who already own a home said they would do the same if there was a potential to make savings. 

Properties needing renovation work before someone can move in are often purchased for far lower prices than they would in their original state because of the scale of the work needing carried out. Whether at auction or through estate agents, people can make savings of as much as £45,000 through buying this way, according to Confused.com. 

And many who have done this as a way to get on the ladder are not only unlocking home ownership that would otherwise not be accessible to them, they are finding that they are also able to turn a tidy profit overall. 

The research from the company found that 19 per cent of people who had bought in this way made a profit of between 25 per cent and 50 per cent when it came to selling their home. 

"As house prices seem to be continuing to rise, it would appear that more and more people are resorting to buying properties that need renovation," said Gareth Lane, head of home insurance at the firm.