"Fixer uppers are still a good option for first-time buyers and there is still money to be made for those looking for a challenge by renovating a property."
This compares to houses requiring only minor structural fixes which sell for £13,500, or 6%, less than the market average.
Direct Line says 'fixer uppers' can provide a more affordable way for first-time buyers to get on the housing ladder, or for investors looking to flip a property to still make a profit.
62% of estate agents believe buyers can capitalise on price reductions if renovations are required and make a profit even if a house requires structural work.
However, there are considerations depending on the area, as one estate agent located in Bristol noted that "stamp duty has eroded the value of any profits".
The research shows homeowners can boost the resale price by £9,980 on average by redecorating every room. The best single room to renovate is the kitchen, which alone can add £9,275 to the value of the property, followed by the bathroom which adds £7,532.
21% of Brits think ‘fixing up’ a home is more cost effective than moving into one that has been already ‘done up.’ Only 12% think the stress of fixing up a home is not worth the hassle of organising a renovation.
Jeremy Bristow, head of home insurance at Direct Line, commented: “Fixer uppers are still a good option for first-time buyers and there is still money to be made for those looking for a challenge by renovating a property. However, homeowners should keep the costs of major work in mind and ensure they are not taking on too much work.
”Putting your own personal touch on a home can be fun and exciting but complications could lead to a hefty bill. With this in mind, renovators should ensure they have a contingency fund in place should they come across any unexpected repairs.
“Householders who are planning home renovations should let their insurer know about any changes being made to their house. Any work that involves walls being knocked down, floors being taken up or electrics changed, can result in damage to the property. Having scaffolding erected and builders coming and going with spare keys also increases the security risk.
“Once the building work has been completed, householders should also inform their insurer of any changes that have been made to their property, as adding rooms can not only add value to their home, but also change their home insurance requirements.”
