First-time buyers in the West Midlands are increasingly turning to 'doer-uppers'—homes in need of renovation—to secure a property in their preferred area, according to a new survey by Nationwide Building Society. The research reveals that 63% of first-time buyers in the region opted for a fixer-upper to save money, with 76% admitting they had undertaken more DIY work than anticipated.
National trends in DIY and renovation
Nationally, 93% of first-time buyers completed at least one renovation or DIY project after moving in. Of these, three-quarters carried out more work than initially planned, with 25% doing much more and 18% taking on major structural projects such as knocking through walls or building extensions. The most common tasks included painting and decorating, bathroom and kitchen improvements, flooring, and general repairs.
Benefits of buying a fixer-upper
The survey found that 41% of first-time buyers were able to purchase in their preferred location thanks to the lower cost of a doer-upper. Additionally, 30% enjoyed shaping their home to their tastes over time, while 22% future-proofed their property for plans like starting a family. Nearly a quarter (23%) reported that renovation work increased their home's value. Overall, 89% of first-time buyers described themselves as confident, excited, or willing to take on DIY projects.
Financial considerations
Six in ten first-time buyers spent over £2,500 on DIY and improvements since moving in, with 29% spending more than £5,000. To fund these projects, 62% factored renovation costs into their deposit savings, and 21% borrowed more on their mortgage to keep cash back for improvements. Nationwide noted that a loft conversion or extension could boost a typical three-bedroom home's value by up to 24%.
Carlo Pileggi, Nationwide’s head of mortgage products, commented: “For many first-time buyers, opting for a cheaper property that needs work is a deliberate and savvy choice rather than a compromise. By taking on a home requiring renovation, they are not only able to get onto the property ladder in the location they want, but they can shape it to their own taste while adding to its value. Although there’s a real enthusiasm amongst first-time buyers to roll up their sleeves, our research suggests many have had to undertake more work than they initially intended. This is where planning and having the right support can make a real difference.”
The research was conducted by Censuswide on behalf of Nationwide, surveying 2,000 first-time buyers across the UK in April.
