Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
Buyers Show Little Interest in Doer-Uppers, LRG Research Reveals
A new survey from property group LRG indicates that most UK buyers are no longer willing to take on major renovation projects. The research, which surveyed over 700 buyers and sellers between April and June this year, found that only 6% of buyers would actively seek a property needing significant renovation, while 53% said they would not take on major work at all.
The findings highlight a shift in buyer preferences, with first-time buyers showing even less appetite for renovation. Only 5% of first-time buyers said they would actively seek a renovation project, and 43% would only consider one if the price reflected the cost of required work.
Despite the overall decline in demand for doer-uppers, the survey found that 41% of buyers would still consider a renovation project if the asking price accounted for the cost of necessary work. Research from Octane Capital, cited by LRG, suggests that renovating a typical doer-upper could cost £85,000 or more.
For letting agents and inventory clerks, these findings suggest that properties requiring significant work may attract less interest unless priced to reflect renovation costs. The research also indicates that sellers who price realistically from the outset are more likely to achieve a sale, while those who price as if the property is already renovated may see interest decline quickly.
Source: The Negotiator