For many years it was a given that renovating your home was a sure-fire way to add value to it. Some people made an enviable profit out of buying, renovating and selling properties on repeat – or ‘flipping’ homes.

Yet since the pandemic, the cost of renovation has spiralled and squeezed margins, putting many off. Last year, the number of planning applications made fell to the lowest level since records began in 2012. Building costs are up by as much as 30 to 50 per cent since 2019. 

The average cost of a loft conversion is now around £50,000 – nearer £100,000 in London – and the average cost to fit a new kitchen is £3,500, according to Checkatrade.

With UK property prices only rising by around 2 per cent in 2025 – and falling in certain parts of the country – there is no longer a guarantee that property owners will make back the hefty amounts they spend on an extension or swanky new kitchen.

But don’t discount renovations just yet – those who have the right skills to spot and do up a rundown property with potential can make a profit by offering a turnkey house to prospective buyers.

Abigail, 31, has made a tidy sum on each of the three homes in Derbyshire she has done up.

Currently halfway through her third renovation – the first she is doing jointly with her boyfriend James – she is already a seasoned pro at sniffing out where money can be made and how to keep costs on track.

Abi, a senior project manager in the automotive industry, says: ‘My family bought and renovated homes so I feel it was in my blood.’

Abi is currently halfway through her third renovation – the first she is doing jointly with her boyfriend James

Those who have the right skills to spot and do up a rundown property with potential can make a profit by offering a turnkey house to prospective buyers (pictured, the house Abi and James are renovating)

She met James in 2018 on a graduate scheme at the equipment manufacturer JCB and between them they have a lot of practical skills, plus some they have learned on YouTube. She says: ‘I love seeing a blank space and imagining what it could be. Renovating is very satisfying and I like learning new skills.’

Her first house was a two-bed terrace in Uttoxeter, Staffordshire, which she bought for £125,000 in 2020.

Abi says: ‘I ripped out the bathroom, taught myself some plumbing on YouTube, decorated, updated electrics and spent £6,000 in total,’ she says. The £6,000 was spent on bathroom materials, electrician, carpet and decorating materials.

The two-bedroom property sold for £140,000 in 2021, giving Abi a profit of £9,000, which she ploughed into the £20,000 deposit for her next home.

Her second property was another two-bed house in Mickleover, Derby, which she bought for £167,000 in 2021.

‘I had it rewired for around £3,000 and I did a glow-up on the garden,’ she says.

‘I was going to build an extension to replace the conservatory on the back but after realising that would cost too much, I just changed the panes of glass and replaced the trim,’ she says. Abi was quoted £20,000 to replace the conservatory, while her works cost her £1,000-£1,500.

Knowing when to save and when to splurge is the key to your profit margins, she says. ‘I didn’t rip out the kitchen, just replaced worktops and painted doors myself.’ She spent £16,000 on the house and sold it two years later in 2023 for £220,000 – banking a profit of around £37,000.

The hallway in the do-er upper is now sleek and stylish with wooden flooring

They reconfigured the large, red-papered hallway to include a handy cloakroom and boot room in the entrance

Abi and James have been posting pictures of the renovation on their Instagram account

Abi lived in both houses while doing the renovation works and admitted that it can be ‘quite stressful’. She says she always leaves one room in good condition so there’s somewhere serene to escape to.

Knowing when to use professionals and when opt for DIY is key, she adds. ‘Anything such as electrics and gas, that comes with regulations, we don’t touch it,’ she says. ‘Plus, plastering is a skill that we leave to the experts.’

Building up a trusted group of tradesmen has helped them avoid too many disasters.

She says: ‘We had a plasterer who ghosted us, but otherwise, we project-manage ourselves, which we can do when working from home. It’s important to keep an eye on what’s being done if you use someone new – things can go wrong very quickly. Be clear about what you want from the start, with the brief and the budget.’

The couple’s current project is a work in progress – and her biggest renovation to date.

They bought a two-bed semi in the pretty village of Newton Solney near the border of Derbyshire and Staffordshire for £262,000 in September 2023.

‘Buy the worst house in the street, is definitely a good tip. You can improve the house but never upgrade the area, and we chose a beautiful village with some very desirable houses,’ she says.

‘Do your research about how much houses sell for and budget for how much needs to be done to the property before you buy it. Also, don’t overdo it – there’s a price ceiling on a three-bedroom, which will never go for the same price as a four-bed.’

Before, the kitchen had a scuffed carpet, ugly cupboards and a single overhead light

Now it’s been transformed into a kitchen-diner with a table island. The average cost to fit a new kitchen is £3,500, according to Checkatrade

The most expensive job was the rewiring of the house at £11,000, plus the kitchen, which now has modern grey cupboards

The two-bedroom house was originally a three-bed property, so they have reinstated the third bedroom by adding a stud wall for £100.

They also reconfigured the large, red-papered hallway to include a handy cloakroom and boot room in the entrance. Their joiner did the walls for little more than £200, plus using Ikea furnishings the whole budget was less than £500.

Again, the couple has pivoted on their plans to add an extension. They had budgeted £30,000 for a ground-floor extension but a combination of having a conifer hedge outside and the building being on clay soil made it clear that ‘costs would spiral’. Abi explains: ‘The foundations would require a structural engineer and digging down 1.8 metres. We knew this would make it way more expensive than the £30,000 budget.’

‘Agents told us it might sell for £400,000 with an extension, but for between £370,000 and £380,000 without, so we decided it simply was not worth it.’

But that doesn’t mean that it is not worth splurging selectively, she says. ‘Certain wow factor items can be worth it, such as quartz worktops in the kitchen or a bespoke front door for kerb appeal.’

Some canny shopping around can bag you stand-out items at bargain prices. Abi says: ‘I love John Pye Auctions, for example. You can get some great ex-display stock – we did our whole bathroom that way. My biggest bargain was a Burlington Bathroom vanity that I got for £300 instead of £3,500. The loo was £20 and the shower tray similarly cheap.’

Before, the bathroom had old-fashioned carpet, a yellowing bathtub and blue and white polka dot curtains

Now it has a double sink, a roomy bathtub and a separate shower with glass doors

Abi and James have pivoted on their plans to add an extension. They had budgeted £30,000 for a ground-floor extension but a combination of having a conifer hedge outside and the building being on clay soil made it clear that ‘costs would spiral’

For the light fittings, the couple went to Swedish megastore Ikea. She says: ‘It helps having an eye for design. I use Google Images to find something I like and then I ask it to ‘find me a similar product’. I use trade accounts at stores such as Howden to save money on timber and paint – not just B&Q where products are DIY spec.’ 

Trade accounts are used by builders to get professional quality products and save on paying VAT. You generally need to be professional and registered for VAT, but it’s useful to know someone whose account you can use, says Abi.

She says waste removal costs have rocketed – she now pays £380 per skip. ‘Grab lorries [heavy duty lorries] can be much cheaper – we paid £180 to have 10 tonnes removed. Make sure to sell scrap metal – we made £600 by selling an old boiler, copper pipes and electric cabling to a local dealer.’

They plan to spend around £10,000 more on their current home, which includes bifold doors (on order for £4,000) patio slabs at £1,000, gardening landscaping for £500-£1,000, driveway and dropping the kerb outside at £2,000, and electric power to the shed at around £2,000.

The most expensive job was the rewiring of the house at £11,000, plus the kitchen. ‘I think the kitchen and bathrooms will give the biggest bang for their buck. The marble vanity in the bathroom was the biggest ‘wow’ for such a low-cost item.’

Abi and James expect to finish their works on the house in around six months and plan to sell it within the next two years. They will then look to buy their ‘forever home’ – an even bigger project for the pair.

They hope to sell their current home for £370,000 to £380,000 and make a profit of around £40,000.

The couple post about their renovations on social media, including on Instagram at @ahouserenovation_