Here, he discusses the upfront purchase costs for both old/new homes, and the considerations to make when buying a period property...
There are lots of benefits when it comes to buying a new build. First, and very topically, they are much more energy efficient – which is an attractive selling point with the rapidly rising cost of living.
Lots of buyers are also attracted to the fact that they are usually built in sought-after areas with good transport links.
And personalisation/choice during construction means that buyers can design a bespoke home without living through renovation – and get a 10-year warranty when they move in.
However, whilst there are no official figures, experience tells us that if you compare a new home and a period home of the same footprint, the new build will typically be 30% more expensive. The average price of a new build property in the UK is £323,667.
On the flipside, the average price of an older property is £250,271. For this reason, and since they usually ooze character, some people prefer purchasing a period property.
However, the cost saving of buying an older home must be gauged versus the renovation costs and the ongoing energy bills associated with older properties.
If the property requires a full renovation, the average cost for a 3-bed house is £76,900. Of course, not all properties will require a full renovation, but some may require structural work – meaning the costs are higher – so homes should always be surveyed structurally, and you should have realistic expectations when it comes to budgets.
Old homes, as beautiful as they are, have their quirks, and sometimes this can lead to expense. For example, single-glazed sash windows can leak energy for fun – they account for around 20-30% of the overall heat loss for your home. So, if you want to reduce the lofty heating bill, then replacing them with double glazing is a good idea – but they will typically cost £1,300 each to install and may only save £200-£300 per year in energy, so it’s a long-term investment.
High ceilings associated with Victorian properties will add around £500 p/a to your heating bill – but there’s not much you can do about that.
If you need a new energy-efficient boiler, that alone is likely to set you back £2,500-£3,000. Some well-placed extra insulation (around £500 worth) in the attic will also bring down your heating bills.
Realistically, if you’re moving into a Victorian period home which has benefitted from very little planning around energy efficiency, you may need to make an investment of around £5,000, just to bring heating costs down by around 20%.