Are fixer-uppers still worth it?
April 2025 - The Times
I’m always surprised by homeowners who put their blood, sweat and tears into building their dream home – and then want to do it all over again.
My sister and her husband spent years transforming a tired, suburban, 1960s house into a cool, modernist-style home. And yet a few years later, she’s considering selling up to buy a 1920s fixer-upper that requires major surgery. I warned her that we are living in financially precarious times and that she should only buy it if she is prepared to live there in its current state, avocado bathrooms and all, in case she suddenly can’t afford to fix it up.
The cost of building materials was stabilising after Covid, but it may soar again under President Trump, warns Tim Phillips, a senior quantity surveyor at Quantiv, which advises on building costs. Phillips predicts that the ripple effects from Trump’s economic mayhem will “definitely impact the UK construction industry”, not least because of disruption to shipping and supply chains. “We may see price increases of 10 to 15 per cent for some materials,” he says.
There may be slim pickings on the next series of Grand Designs, then. Interest in fixer-uppers was already cooling for two years owing to rising building costs, interest rates and planning backlogs, according to Chloe Leefe, the director of the London buying agents Aykroyd & Co.
Leefe still sees the odd buyer taking the plunge. “But they’re changing the way they work. Rather than going in straight away and doing extensive projects, they’re doing it piecemeal or living in the property for a year first to build up funds.
She advises against overdeveloping – “don’t go mad on finishes and gold taps” – and suggests prioritising properties that are being sold with planning permission (it could save you 18 months in bureaucracy). But make sure the numbers stack up before you buy: she’ll look at the asking price, get reputable builders to quote a price per sq ft for a renovation, then look at “sales achieved” prices for similar houses nearby. “Basements used to cost £500 a square foot. Now it’s nearly double that. Let’s say you’re adding 1,000 square feet. Will you get that money back? Not always.”
And only take on a fixer-upper if you’re staying for the long haul. “If you’re trying to buy, develop and flip within three years to make a profit, those days are gone.
Phillips advises renovators to place orders well ahead of time for big-ticket items such as kitchens and bathrooms, to avoid price increases later. “There are lots of Easter and May bank holiday sales coming up, so do your homework now and get your orders in to reduce tariff issues.”
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