Are fixer-uppers really the cheap and cost-effective investment many believe?
They are popular amongst landlords but research by lettings agency Benham and Reeves has analysed the current cost of purchasing a property in need of modernisation and how these homes compared to the rest of the market.
The results may be surprising to some.
The research shows that at an average sold price of £358,034, unmodernised properties present a more affordable investment - they are 4.5 cheaper than similar, modernised homes in the same area.
Benham and Reeves then looked at the average cost of bringing an unmodernised property up to standard, a task that is estimated to require a budget equal to 15.8 per cent of a property's original value.
On the average unmodernised home, that’s £56,569, meaning landlords will eventually fork out a total of £414,604 to get their fixer-upper up to scratch - £40,552 more than the cost of buying a modernised property outright.
While an unmodernised home in the capital will cost almost £32,000 less on average, almost £115,000 will be spent on renovating it.
The investor in the East of England will eventually fork out £56,543 more while in the South East this overspend averages £44,440.
Even in the North East where the cost of renovating a fixer-upper is at its lowest, an unmodernised home will eventually cost almost £7,000 more once accounting for the cost of bringing a property up to spec.