Eyeing a Cornwall doer-upper? The upgrade bill could hit £173,900

The asking price looks like a bargain. The kitchen is tired, the windows rattle and the boiler has seen better decades, but you tell yourself you will sort it over time. New research suggests the bill for that optimism could run well into six figures.

A report from the Home Builders Federation (HBF) estimates that bringing a typical older three-bedroom semi up to modern new-build standards could cost as much as £173,900. The findings have prompted South West housebuilder Cavanna Homes, which builds across Devon, Cornwall and Somerset, to urge anyone thinking of buying a home to work out the true cost of an older property before they commit.

What buyers expect to spend

The HBF report, Nothing Compares to New, was published on 28 September. It found that more than half of those surveyed (56 per cent) expected to spend no more than £50,000 renovating a property. Almost a third (29 per cent) thought £25,000 or less would do it.

The HBF’s own estimate is a lot higher. Upgrading an older home to include the energy efficiency, modern fittings and features commonly found in today’s new builds could cost between £57,350 and £173,900, depending on the work needed.

Those figures are illustrative, based on a typical three-bedroom semi-detached home. The real cost depends on the property’s age, condition, size and location, and on exactly what needs doing.

Where the money goes

Energy-saving upgrades alone could cost between £23,100 and £83,000, according to the HBF.

• Solar panels: an estimated £5,000 to £10,000
• Low-carbon heating: £3,000 to £10,000 after the applicable government grant
• Major insulation improvements, including windows and doors: up to £50,000

Hannah Newnes, Sales Director at Cavanna Homes, said: “Buying a home is one of the biggest financial decisions most of us will ever make, so it’s completely understandable that people are looking carefully at what they can afford.

“An older property with a lower asking price can seem like an attractive option, particularly for buyers who are trying to make their budget stretch further. But it’s important to understand what that property might cost over the next five, ten or even 20 years.

“Renovation projects can be incredibly rewarding, and there will always be people who love the idea of putting their own stamp on an older home. However, the cost of replacing a kitchen or bathroom, upgrading insulation or installing a more efficient heating system can quickly add up.”

The running costs after moving day

Separate research from the HBF and Octopus Energy, Watt a Save: The New Build Advantage, was published in February. It found that new-build homeowners could save an average of £420 a year on energy bills compared with people living in older properties.

On average, the study says, modern new builds are around 21 per cent cheaper to run. Compared with some of the least energy-efficient older homes, the potential saving rises to around £620 a year. Those are national averages, and real savings vary with the property, how much energy a household uses and the tariff it is on.

Hannah said: “Energy efficiency is an increasingly important consideration for buyers, particularly when household budgets remain under pressure. While people naturally look at mortgage repayments and the purchase price when deciding what they can afford, ongoing running costs deserve just as much attention.”

Older home or new build?

Cavanna Homes is careful not to write off older homes altogether. “We’re certainly not suggesting that an older home is always the wrong choice,” Hannah said. “But we would encourage anyone considering a move to compare the complete picture, including the cost of renovations, maintenance, energy bills and the time involved in carrying out improvements.

“A home that initially appears more expensive could ultimately represent better value over the longer term.”

Not many buyers see it that way yet. Just 19 per cent of HBF respondents believed new builds offered better value for money once purchase prices, energy bills and renovation costs were weighed up together.

“The housing market is challenging, and we know that many buyers are taking longer to make decisions,” Hannah added. “That’s why it’s so important that people have all the information they need to make the right choice for their circumstances.”

📷The interior of a Cavanna Homes showhome