Buyers face £70k upgrade bill for second-hand homes

New research reveals homebuyers could expect to fork out more than £70,000 upgrading an average property to new build standards.

Findings from the Home Builders Federation’s (HBF) ‘Get on with living’ report suggest many potential homeowners are significantly underestimating the costs of doing up an existing property.

The report details costs totalling £73,271.80 to bring an average 3-bed semi-detached house to new build standards. That’s despite 71% of the population expecting to set aside no more than £30k, and almost a quarter (23%) forecasting a spend between £10k and £20k.

With 85% of new homes now achieving an A or B EPC rating, vs just 4% of older homes, loft and cavity wall insulation are among the list of potential upgrades and a priority for many homebuyers. In fact, more than half of survey respondents (53%) said lower utility bills and running costs due to increased energy efficiency would encourage them to buy a new home.

Low maintenance was also identified as a key consideration for homebuyers, with 41% claiming that would encourage them to buy new. The expense of upgrades and maintenance works can quickly add up. Typical works to an average 3-bedroom semi-detached home would cost £61,489.30. When including exterior rendering and guttering, this figure increases to a £73,271.80. The full breakdown of cost estimates is as follows:

• Kitchen £10,550
• Bathroom £5,000
• Central heating £6,000
• Rewiring £6,225
• Plastering £9,250
• Flooring £2,264.30
• Insulation £1,950
• Windows and doors £12,000
• Roofing £5,500
• Guttering £900
• Rendering £10,882.50
• Decorating £2,750

Neil Jefferson, Managing Director of HBF said; “This report helps to uncover the hidden savings new builds offer as a result of investment in research and more environmentally friendly building materials. This coupled with home builders’ commitments to support the government’s Net Zero ambitions means that new build homes have superior energy-efficiency performance and offer buyers significant value for money.

“Homebuyers retrofitting an older property often incur tremendous upgrade costs and disruption to their family life, not forgetting unexpected bills putting right horrible hidden histories uncovered along the way.

“In the face of mounting pressures on households, there’s much to be said for value new builds offer and the energy-bill savings energy efficient homes deliver.

The report’s release marks the start of New Homes Week, an annual campaign to raise awareness of the benefits of new homes and share guidance to support prospect buyers to make their move.