New build homes offer significant value over renovation projects

Research from the Home Builders Federation (HBF) indicates that buyers of ‘fixer-upper’ properties may significantly underestimate the costs required to reach modern living standards. The report suggests that renovating a three-bedroom semi-detached house to match the energy efficiency, technology, and comfort of a new build could cost approximately £170,000.

While 56% of surveyed adults expected to spend no more than £50,000 on renovations, only 1% anticipated costs exceeding £150,000. Beyond initial renovation expenses, the study highlights long-term savings associated with new builds. Data from Octopus Energy estimates that new homes, which typically achieve A or B energy performance ratings, use roughly 30% less energy than older properties. This can result in annual energy bill savings of approximately £420 compared to EPC D-rated homes, and up to £650 compared to less efficient EPC F or G-rated properties.

The findings also note that affordability pressures are driving buyer behavior, with 42% of respondents stating that mortgage limits might force them to purchase properties requiring significant renovation work.