MARKET
OLD VS NEW Buying a new home versus a property requiring renovation? Ginetta Vedrickas looks into the pros and cons
actively seek a project, and the 43% who remain open to one will only consider it where the asking price reflects the work involved. What they want instead is certainty, a home they can live in from day one, at a price that holds no surprises.” RENOVATION COSTS LRG’s survey found that, where first time buyers do take on work, the motive for doing so was necessity rather than appetite. Research from Nationwide published earlier this year found that two-thirds of recent first time buyers had bought a cheaper property because it needed work, and that three- quarters ended up doing more than they had planned. Inevitably, rising building costs play a major factor in the shift towards buying a ready-to- move-into home. Analysis by lender Octane Capital, published in June, put the cost of refurbishing a typical doer-upper at £85,000 or more, while the Building Cost Information Service forecasts that building costs will rise even further, around 14% over the next five years, with labour costs adding the biggest pressure. As the cost of building work climbs, the discount a doer-upper offers no longer makes economic sense and a home in good repair is often the better value purchase, even at a higher asking price. First time buyers in LRG’s survey observed that “materials and labour costs have risen so refurbs no longer cost the same as you thought a few years ago”. Examining the data, Manning says, “Buyers haven’t fallen out of love with homes that need work. They’ve fallen out of love with paying twice, once at the asking price and
Buyers haven’t fallen out of love with homes that need work. They’ve fallen out of love with paying twice renovation, with a slim majority, 53%, who won’t take on any major work at all. The largest single group, 41%, are open to a renovation project, but only where the asking price genuinely reflects the work involved, leading to the report’s conclusion that the former appeal of the doer-upper hasn’t disappeared; it has simply been repriced. Interestingly the clearest shift is among first time buyers, explains Mark Manning, Managing Director of Manning Stainton, part of LRG, “Once the doer-upper’s natural constituency, they are now among the most condition-conscious buyers in the market, with 20% ruling out major work entirely, against just 4% of family movers. Just 5% would While traditionally first time buyers have sought out cheaper properties to renovate, many of today’s FTBs are choosing to buy a ready-to-move-into home. In a survey of over 700 buyers and sellers carried out earlier this year, research from property group LRG found that buyers’ expectations of a home have changed. Just 6% said that they would actively look for a property needing significant
Expe C nt
As a new build owner myself, I believe a carefully chosen new home can offer better long-term value and lifestyle. However, buyers should examine the service charge, lease terms, developer’s track record, local resale market and the price per square foot of comparable homes before committing.
James Nightingall , Founder, HomeFinder AI
96 First Time Buyer October/November 2026
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