A derelict property will still set you back £240,000
The latest data from LandSale, the property portal dedicated to land and rural property, reveals that buyers looking to breathe new life into a derelict property could face an asking price as high as £237,500 on average, highlighting the substantial value still attached to redevelopment opportunities across Britain.
Britain continues to struggle with a severe housing shortage and, while the government remains focused on delivering new-build homes to combat the issue, many experts have also pointed towards making better use of the country’s existing housing stock. Recent research estimated that there are around 300,000 empty homes across England, with a combined value of £88bn.
LandSale has therefore analysed another potential source of housing supply: derelict properties. While these properties can present buyers and developers with an opportunity to breathe new life into an existing building, the initial cost of securing one can still be considerable.
Based on current listings, the typical asking price for a derelict property across Britain stands at £122,500, with properties sitting on an average plot of 6.26 acres.*
However, the cost of securing a derelict property varies substantially depending on where buyers look.
In the South East, the typical derelict property commands an asking price of £237,500, despite coming with an average of just 1.42 acres of land.
The North West ranks second, where derelict properties command a typical asking price of £213,750, although buyers get considerably more for their money when it comes to land, with an average plot size of 10.37 acres.
In the East Midlands, the typical asking price stands at £200,000, while prices in Wales (£195,000) and Yorkshire and the Humber (£150,000) also sit above the national figure.
At the other end of the market, buyers looking for a renovation opportunity will find the lowest typical asking prices in the South West, at £67,500, followed by Scotland at £75,000.
Founder of LandSale, Adam Morris, commented:
“Paying close to £240,000 for what may essentially amount to a derelict shell or, in some cases, little more than a pile of bricks and a plot of land, certainly demonstrates just how valuable property opportunities remain in parts of Britain.
But derelict properties shouldn’t necessarily be viewed as housing that has simply fallen into disrepair. For the right buyer, they can represent an opportunity to acquire land in a desirable location, breathe new life into an existing building and create a home that might otherwise be extremely difficult to find.
Of course, the purchase price is only the starting point and buyers need to carefully consider renovation costs, planning requirements and the condition of the property before taking the plunge. However, for those with the appetite and expertise to take on a project, derelict properties can offer a genuinely exciting alternative to buying a conventional home.
They may not provide a silver bullet for Britain’s housing shortage, but bringing viable derelict properties back into use certainly has a role to play, particularly when every additional home makes better use of land and buildings that already exist.”
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