New research conducted on behalf of Ocean Finance shows that of the 12% of people in the UK who have purchased a house as a renovation project, the average profit they have made or expect to make for their efforts is between £20,001 and £30,000. This was calculated by subtracting the purchase price of the property and the cost of the renovation work from the value of the house now.
However, 7.8% of these respondents claimed they had either pocketed or hoped to make a profit of more than £100,000.
This profit may be seen as just reward for a lot of hard work. While the majority (78%) of the people who have taken on a renovation project have completed it, 22% admitted it was still underway.
Many respondents also revealed that the project had not been as easy to complete as they were expecting. In fact, 46% of home renovators admitted the work involved had been harder than they anticipated.
However, despite this the end result may have been worth it for most, as 63% of people who had taken on a property renovation scheme said they would do it all again.
People aged between 25 and 34 years old were found to be the most likely to have invested in a property in need of improvement, with 19% of this age group revealing they have done so. This might be because this is the age when people are thinking about taking their first steps on the property ladder, and buying somewhere that needs a facelift could save them some money.
Londoners were also the most likely to take on a renovation project (20%). With house prices in the capital so much higher than the average across the rest of the UK, buying a house or flat that needs doing up might save residents money.
Ian Williams, spokesman for Ocean Finance, said: “Taking on a renovation project can be a daunting prospect, but not only could it help you bag your dream home for a bargain price; you may end up making a profit too.
“Of course, people should always make sure they carefully budget so that they don’t end up spending more than they can afford on doing up the property, and that they don’t take on a project they can’t manage.
“House prices can go up and down, as can mortgage rates, and this may have an impact on the project’s budget – but if all goes well, when the work is finished not only will they be left with a sense of achievement, but hopefully a healthy profit as well.”
