During 2022, the demand for property projects experienced a sharp decline. The reasons? The rising costs of building materials and a scarcity of tradespeople. With everyone keen to renovate or upgrade their homes post-pandemic, tradespeople were maxed out. Consequently, countless renovation projects sat untouched, gathering dust.

But as with many things in life, change is the only constant. According to Stacks Property Search, a buying agency, the term ‘properties with potential’ is once again a popular search criterion among prospective buyers. Clare Coode from Stacks highlights that the once stalled demand for projects has not only resumed but is gaining rapid momentum. Good renovation opportunities are now in higher demand than ever before.

She cites a compelling example: “A quaint, dilapidated farmhouse with a picturesque barn recently hit the market. Situated close to the sea, the renovation costs for this property were pegged at around £1 million. However, the final sale, conducted through sealed bids, went for a whopping 50% above the initial ‘offers over £1 million’ guide.”

The Cornish Attraction

Cornwall, with its sweeping coastal views and idyllic landscapes, is particularly popular among property aficionados. Some properties are so rare here that buyers often lean towards knock-down-rebuild prospects. These unique property opportunities can be worth millions. In some cases, buyers are even prepared to pay more than the house’s projected value, either due to the perceived long-term appreciation or the inability to find their dream home through traditional means.

But Cornwall’s charm isn’t uniform. A chic bungalow with a sea view might have a £1.5 million price tag. But after spending another £1 million on refurbishments, its value could soar to £3 million or more. However, potential buyers must tread carefully. Location is paramount. Building a luxury abode in a less desirable area of Cornwall might not yield the expected returns.

Key Considerations for Property Projects

1. Plot Relevance: The location of your property matters immensely. Buyers shouldn’t compromise on this, even if it means waiting longer to find the perfect plot.
2. Plot Size and Context: It’s essential to ensure the property doesn’t feel overwhelming for its plot. Also, if you’re considering building in an Area of Outstanding Natural Beauty (AONB), remember that there might be restrictions. It’s unlikely, for instance, that you’d get permission to erect a three-storey building sandwiched between single-storey homes.
3. Cost & Time Estimations: A common pitfall is underestimating the time and money required. Hastiness can prolong the project and inflate costs. It’s wise to view episodes of home renovation shows, like Grand Designs, to get insights into how even well-planned projects can face delays.
4. Trade Costs: Even though the price of building supplies has declined from its peak, the cost of skilled labour remains high. Specialist tradespeople may still have year-long waitlists.
5. Preparation is Paramount: Before embarking on a project, it’s invaluable to consult architects and planners. They can offer guidance on what’s feasible and how to align your vision with practical constraints. Moreover, having a clear plan reduces the chances of costly alterations later on.
6. Accommodation During Renovation: Decide where you’ll reside during the renovation. Some opt to live on-site in caravans, but it’s a choice suited for only the most resilient.
7. Overseeing Your Project: Regularly monitoring the progress is crucial. If you can’t oversee it personally, it’s worth hiring a dedicated project manager. This person should not only have technical expertise but also understand your vision and communicate effectively.
8. Financial Prudence: Lastly, while it’s tempting to opt for the cheapest or quickest contractor, it’s essential to prioritize quality. Get multiple quotes, understand the market, and don’t skimp on essential aspects.

Conclusion

The allure of property renovation, especially in regions like Cornwall, is undeniable. However, diving into such projects requires thorough planning, astute understanding, and a patient approach. By doing your due diligence and staying informed, you can unlock the immense potential that the UK property market has to offer.