The hidden costs of renovating an older home

While taking on a fixer-upper might seem like a great way to get on the property ladder, a recent report from the Home Builders Federation reveals the financial reality of bringing an older house up to modern standards.

If you are currently weighing up your options, here are the hidden costs of buying an older home you need to consider before signing on the dotted line.

How much does it cost to renovate an older home?

Taking on a property that needs a bit of work might seem like a good idea when you’re picturing picking out paint shades and choosing new kitchen tiles. However, the reality is that renovating a second-hand home up to scratch involves far much more than basic cosmetic touch-ups.

According to the 'Nothing compares to new report', upgrading a standard three-bedroom semi-detached house to modern living standards can cost anywhere from £57,350 to a staggering £173,900. This is because, once you start peeling back old wallpaper, you'll often quickly discover that most of your budget will go towards invisible fixes like updating old electrical wiring, replacing pipework, and complete re-plastering long before you can even think about soft furnishings.

Higher energy bills and retrofitting expenses

Bringing a second-hand property up to current energy efficiency standards by installing modern wall insulation, solar panels, and the low-carbon heating systems found in a new build home 

can cost up to £83,000. And if you choose to skip these important upgrades, you could end up paying for that decision every single month through your utility bills.

Modern builds are constructed with efficiency added in from day one, with 87% achieving an A or B Energy Performance Certificate rating. Living in a modern new build home can save you up to £618 a year on energy bills compared to an older house with an F or G rating, alongside an extra £126 a year saved on water bills.

Layout changes and stripping back old DIY

A common misconception when house hunting is that buying an older property is the only way to create a space that is perfect for you. What often gets overlooked is that renovating an older house forces you to spend thousands on major structural work, such as knocking down internal walls or building costly extensions, just to achieve open-plan living, which is popular with modern families.

With a modern new build home, you get functional, light-filled layouts already built into the floorplan from the very beginning. And because you can select your kitchen cabinets, worktops, bathroom tiling and flooring long before you even pick up the keys, you get to focus on adding all the extra enjoyable details that make a house feel like home.

Unexpected repair bills from day one

Research from Purple Bricks found that around 40% of second-hand home buyers find themselves hit with an average bill of £4,000 for unforseen, emergency repairs soon after getting the keys to their new home. Having to fork out extra cash right after paying a deposit and solicitor fees can completely derail the renovation plans you have.

When you buy a new home, you can leave those hidden costs of renovating an older home behind, and you won't be left to navigate or pay for issues with your new home after you move in. Each of our new build homes come with a two-year builder guarantee to fix minor defects at no extra cost, alongside a 10-year structural warranty that protects your investment long-term. And on top of that, we're also registered with the New Homes Quality Board to give you extra protection and you also get access to the independent New Homes Ombudsman Service.

Looking for more reasons to buy a new build home?

You can discover even more reasons why you should buy a brand new home here.