Home Builders Federation report highlights high renovation costs

Research from the Home Builders Federation (HBF) indicates that property buyers frequently underestimate the costs associated with renovating older homes to meet modern standards. According to the HBF report, ‘Nothing Compares to New’, renovating a three-bedroom semi-detached property to match the energy efficiency, technology, and comfort of a contemporary new build could cost approximately £170,000.

The study found a significant gap between consumer expectations and actual costs: 56% of adults expected to spend no more than £50,000 on a ‘fixer-upper’, while only 1% anticipated costs exceeding £150,000.

Affordability remains a primary driver for choosing older properties. The report notes that 42% of respondents feel mortgage affordability limits force them toward renovation projects, a figure that rises to 54% among those aged 25 to 34. Steve Turner, executive director at the HBF, noted that the value of integrated features in new builds, such as energy-efficient heating and modern layouts, is often overlooked when calculating the long-term value of renovation versus new construction.