Home Renovation Cost vs. Buying a New Property in the UK

If you are a homeowner in the UK and you need a change, you have a choice: you can renovate your home or move.

You must consider both financial and emotional considerations when deciding between these options. At Build Abode, we speak with clients all the time who have made a similar choice. As always, the main question we get as we sit down with them for a complimentary consultation is this: What does a home renovation cost?

Here, we will break down everything you need to know.

The Average Home Renovation Cost in the UK

We can begin with a general cost breakdown. According to several sources and our data, the average renovation cost ranges from £20,000 to £100,000+. We can look at this room by room or project by project. A kitchen renovation, for example, generally ranges from £10,000 to £30,000. A bathroom renovation is usually less, ranging from £5,000 to £15,000.

Adding an extension to a house costs £40,000 to £100,000+, and converting a loft costs £30,000 to £70,000.

Factors That May Affect the Cost of a Home Renovation

Several factors affect the cost of a home renovation. First, you must consider the property’s age and its condition. Another factor is the cost of materials and labour. You must also consider the costs associated with planning permissions, building regulations, and interior design costs.

Additional Considerations to Keep in Mind About a Home Renovation

Before you settle on a home renovation, there are some considerations we want to mention. First, there may be hidden costs that you aren’t prepared for. These include structural issues, plumbing upgrades, or rewiring. We suggest adding 10—20% to your budget to cover these things.

You also should consider time and inconvenience. Though we do our best to schedule your project as soon as possible, there might be an extended waiting period if you wait to place your deposit. Also, when you get a home renovation, you must consider noise, dust, and other factors. In other words, you will live on a construction site during the project’s duration.

The Average Cost of Buying a New Property in the UK

The national average of a new home in the UK ranges from £280,000 to £350,000. In London, the average is around £680,207.

Costs in Addition to the Price of the Property

After considering the cost of a new home, you also need to consider other costs associated with moving house. For instance, there is a Stamp Duty. The cost of this depends on the value of the property. There are also various legal fees ranging from £1,000 to £2,000. If you get a mortgage, those fees range from £500 – £2,000, and your property survey and valuation process will cost between £300 – £1,500. Finally, consider moving costs, ranging from £500 to £2,000.

Other Considerations Before Buying a New Property

There are a few other considerations you should consider before buying a new property in the UK. First, you may lack inventory in the area you wish to move. Also, even after you buy a property, you may require or desire renovations. Finally, some mortgages can become less affordable depending on the impact of interest rates.

Financial Comparison – Which is More Cost Effective?

Here, we can examine the financial comparison between home renovations and buying a new home.

The average cost of a renovation is £20,000 to £100,000+. There is usually no Stamp Duty associated with this, nor are there moving costs. Minor inconveniences may occur, like temporarily living in a construction zone.

The average cost of buying a new home is £280,000 to £350,000+ (over £680,000 in London). Additional costs include Stamp Duty (£2,000 to £15,000+) and moving costs (£500 to £2,000).

The Pros and Cons of Renovation vs Buying

The Pros of Home Renovation

• More affordable, in most cases, when compared to buying a new home
• No hassle or stress from moving
• Allows for customisation
• Can significantly increase the value of your property

The Pros of Buying a New Property

• A fresh start in a fresh place
• No inconveniences related to construction
• Option to relocate to a more desirable neighbourhood or location

The Cons of Home Renovation

• Unexpected costs may occur if unplanned problems arise, like structural issues
• Living on a construction site can disrupt your day-to-day
• Depending on your location, some properties might have structural limits on conversions/extensions

The Cons of Buying a New Property

• More upfront costs (Stamp Duty, legal fees, moving costs)
• Property markets might be highly competitive, which makes finding the perfect home a challenge
• Even after the purchase, you might require renovations to your new property

Which Option Might be Best for You?

Now that you know the difference between home renovation and new property costs, you may still be wondering what is right for you.

Renovation might be the best option if you love the location you live in now, but you don’t love the home you are in. It is also the best option if your home has good renovation potential. Also, if you have a lower budget, the renovation cost is significantly lower than buying a new home.

Buying a new property might be the best option if you need a bigger space that renovation cannot achieve. You are also better off buying a new home if there are major structural limitations. Finally, it may be better to buy a new home if the market conditions are good for sellers and you can make a large profit on the sale of your property.

Work with Build Abode for Your Next Home Renovation

Have you decided that a home renovation is better for you? We would love to invite you to get in touch with us, schedule an appointment, and join our team for a complimentary consultation at our Stockley Park location. We look forward to working with you on the home renovation of your dreams.