Making the decision to renovate your home or purchase a property with the intention of renovating, is an exciting choice for homeowners. However, with the Cost of Living Crisis and rise in house prices, you may be deterred from beginning such a project with so many financial unknowns.
Our experts have created the following guide to help you start budgeting, with an estimated cost of renovating a house in 2023, as well as all the information you need to know before committing to such a large project.
How much does it cost to renovate a house?
Every house renovation project is unique and so the total cost of renovating a house can vary depending on the project details.
As a general guide, it has been estimated that a 3-bed house renovation would cost between £77,000 and £140,000. The following factors will affect the renovation costs:
- Property size
- Property age and condition
- Renovation complexity
- Structural work
- Building extension work
- Quality of materials, fixtures and finishings
- Decoration and interiors
- The location of where you live
With so many costs to consider, start by listing all the jobs you will need to do on your property. From here, you can calculate the renovation costs and start planning your budget.
However, make sure you add a 10-15% contingency to your budget for any unexpected issues that are likely to arise through the project.
Additional costs to remember
Alongside the obvious costs of structural work, installations and redecorating, there are other costs that you shouldn’t forget while budgeting.
1. Surveys and planning application
2. Stamp duty and legal costs
If you’re renovating a property you’ve just purchased, ensure you factor in stamp duty and solicitor costs. The stamp duty will be charged at a higher rate if it’s your second property.
3. Rent costs
If you are renting before moving into your newly renovated home, or even if you need to find temporary accommodation during the build, this will come at a cost and must be accounted for.
Moving house vs. renovating: which is cheaper?
If you’re struggling to determine whether moving house or renovating your current house will be the more economical option, consider the benefits and cons of each option.
If you decide to renovate your current house, it is highly likely the overall cost will be considerably less, with the choice to renovate in stages that will spread the cost out over a longer period of time. If you love the area you’re in, you’ll be able to keep living there while improving your home and creating your dream space.
On the other side, moving house may be the fresh start you are looking for, giving you a new lease on life. You’ll be able to choose a better location with an even nicer neighbourhood. You’ll be able to avoid all the stressful building work that comes with living on a building site.
Our sister company, Bruckland Capital, is offering an alternative way to build wealth, with construction investment opportunities resulting in a significantly higher return of 10-15%.