What Are the Costs for a Full Home Renovation in the UK?
Planning a full home renovation can be exciting, but working out the budget is often one of the hardest parts. Costs vary widely depending on the size and age of the property, the amount of structural work required, the quality of materials and, importantly, where you live.
For a typical three-bedroom home, current 2026 UK cost guides put a full renovation broadly in the £40,000 to £180,000+ range. A more extensive renovation involving structural changes, new services and higher-quality finishes can go considerably higher.
London is particularly expensive. Current London estimates put full renovations at roughly £800 to £1,800 per square metre for many projects, with premium properties and complex refurbishments going beyond this.
Key takeaways
- A full renovation of a typical three-bedroom UK home can cost around £40,000 to £180,000+, depending on the work involved.
- Location makes a major difference with renovations in London costing substantially more than cities in the North and Midlands because of higher labour and access costs.
- Always keep a 10–15% contingency for unexpected problems, particularly when renovating older properties.
What does a full home renovation include?
A full renovation can include structural repairs, new foundations or underpinning, roofing, a new kitchen, bathrooms, plumbing, electrics, heating, flooring, plastering and decoration.
Some projects also include new windows, doors, insulation and changes to the layout.
The phrase "full renovation" is not a fixed industry definition. One builder may use it to describe a cosmetic refurbishment, while another may mean stripping the property back to its structure and rebuilding the interior.
For this reason, the figures below should be treated as budgeting guides rather than quotations.
A 2026 UK cost guide puts the average renovation of a three-bedroom house at around £43,530 to £110,350, including a range of major works.
More extensive full-house projects can be significantly higher.
Full renovation costs by location
The table below gives useful planning figures for a typical 3,4 and 5 bedroom house undergoing a substantial renovation - based on data from VZ Builders, a team of house builders in Totteridge. London figures are broken down by area. The city figures should be treated as broad budgeting ranges because the condition of the property and specification can move the final price considerably.
| Area | 3-bedroom house | 4-bedroom house | 5-bedroom house |
| North London | £120,000–£210,000 | £145,000–£255,000 | £170,000–£300,000 |
| East London | £110,000–£195,000 | £135,000–£235,000 | £155,000–£275,000 |
| West London | £123,000–£218,000 | £150,000–£265,000 | £175,000–£310,000 |
| South London | £114,000–£201,000 | £140,000–£245,000 | £165,000–£285,000 |
| Manchester | £45,000–£75,000 | £55,000–£90,000 | £65,000–£105,000 |
| Leeds | £43,000–£72,000 | £52,000–£86,000 | £62,000–£100,000 |
| Birmingham | £45,000–£75,000 | £55,000–£90,000 | £65,000–£105,000 |
| Liverpool | £42,000–£70,000 | £50,000–£84,000 | £60,000–£98,000 |
| Newcastle | £40,000–£68,000 | £49,000–£82,000 | £58,000–£95,000 |
London area figures are consistent with current 2026 whole-house renovation benchmarks, which place North London at approximately £119,700–£211,200, East London at £110,300–£194,700, West London at £123,400–£217,800 and South London at £114,100–£201,300.
For comparison, current UK renovation data puts London at around 30% above the UK average, while cities such as Manchester, Leeds, Liverpool and Newcastle generally sit below London because labour and associated project costs are lower.
These figures assume a substantial renovation rather than simply replacing a kitchen and bathroom.
Foundations for a home renovation
Foundation work can be one of the biggest unknowns in a renovation.
If the existing foundations are sound, there may be little or no additional foundation cost. However, problems such as subsidence, movement, poor drainage or an extension built on inadequate foundations can change the budget quickly.
Simple foundation repairs may cost several thousand pounds, while underpinning or major structural work can run into tens of thousands.
Before allowing money for this part of the project, a structural engineer or suitable building professional should assess the property. This is particularly important with older homes.
Foundation work can also affect other parts of the renovation. If floors have to be removed or walls supported, you may need additional structural engineering, temporary works and reinstatement.
For this reason, foundations should have their own contingency rather than simply being absorbed into the general building budget.
Kitchens refurbishment - £5,000-£30,000+
The kitchen is often one of the most expensive rooms in a renovation.
A basic kitchen refurbishment can cost around £5,000, while a mid-range kitchen can reach £12,000 to £25,000. Premium kitchens can go beyond £30,000, particularly when bespoke cabinetry, stone worktops and high-end appliances are involved.
The layout makes a major difference. Keeping the sink, cooker and appliances in roughly the same positions can reduce plumbing and electrical work. Moving them can involve additional pipework, wiring, flooring repairs and structural work.
The kitchen itself is only part of the cost. You also need to allow for appliances, lighting, flooring, plastering, decorating and installation.
In London, a mid-range kitchen renovation can be noticeably more expensive. Current 2026 estimates put a mid-range London kitchen renovation at roughly £10,000 to £33,000.
Bathrooms refurbishment - £3,000-£20,000+
Bathrooms can be relatively compact, but they can still consume a sizeable part of a renovation budget.
A basic bathroom renovation may start at around £3,000 to £5,000. A more typical mid-range project can cost £7,000 to £10,000 or more, while premium bathrooms can reach £15,000 to £20,000+.
The main costs include the suite, taps, shower, tiles, waterproofing, flooring, lighting and labour.
Changing the location of a toilet, bath or shower can increase the cost because drainage and water supplies may need to be altered.
Bathrooms also need careful waterproofing. Saving money by using cheaper installation methods can cause expensive problems later, particularly if water gets behind tiles or into floors and walls.
If you are renovating a whole house, it is often worth deciding on the bathroom layouts before plumbing work begins.
Roofing - £5,000 to £18,000
The roof protects everything underneath it, so it should be high on the renovation priority list.
A typical new roof can cost roughly £5,000 to £18,000, depending on the size, materials, access and complexity. Current 2026 estimates put an average new roof for a three-bedroom renovation at around £12,250.
A roof replacement normally involves more than simply putting new tiles on.
You may need new battens, membranes, insulation, leadwork, gutters and ventilation. Scaffolding can also add a significant amount to the bill.
Older properties can be particularly expensive because roof structures may need repair before the new covering is installed.
If the roof is already in poor condition, dealing with it early can prevent water damage to ceilings, plaster, insulation and timber inside the house.
Patio - £10,000+
A patio is usually a smaller part of the overall renovation budget, but it can still make a noticeable difference to the finished property.
The price depends mainly on the size and material. A straightforward patio using concrete paving may cost a few thousand pounds. Natural stone, porcelain, intricate patterns, steps, drainage and difficult access will increase the price.
You also need to consider preparation. If the existing patio has to be removed, the ground may need excavation and levelling before the new surface can be installed.
Drainage is particularly important. Water should not be allowed to run towards the house.
For homeowners carrying out a full renovation, it can make sense to complete major external drainage and groundworks before the final patio is installed. This avoids damaging a new patio later.
Electrics - from £3,500
A full rewire is common in older properties, especially homes with outdated wiring or insufficient electrical capacity.
A whole-house rewire is currently around £3,500 to £8,000 nationally, with London estimates reaching approximately £4,600 to £10,600 depending on the property and specification.
The final cost depends on the size of the house and the number of sockets, switches, lights and circuits required.
A renovation is often the best time to carry out electrical work because walls and ceilings may already be open.
It is also a good opportunity to plan for modern requirements, such as additional sockets, outdoor power, security systems, smart-home equipment and electric vehicle charging.
Electrical work should be carried out and certified by a suitably qualified electrician.
Flooring - from £2,000
Flooring is another area where your choice of finish can dramatically change the budget.
Budget laminate or vinyl can keep costs relatively low. Engineered timber, natural stone and premium porcelain can increase the price considerably.
For a three-bedroom house, a broad allowance of around £2,000 to £6,000 is often used for flooring, although a larger property or premium specification can go much higher.
London projects can cost substantially more. One current London renovation guide estimates around £6,000 to £16,000 for engineered oak or good-quality LVT throughout a three-bedroom property.
Remember to include preparation.
Old floors may need levelling, damp treatment or repairs before new flooring can be installed. This is particularly important in older houses.
Plumbing - from £2,000
Plumbing is often hidden behind walls and floors, making it easy to overlook when preparing a renovation budget.
A whole-house replumb can cost around £2,000 to £10,000 in a typical property, although the cost can rise if the heating system, boiler, radiators or drainage also need replacing.
Moving bathrooms and kitchens will normally increase the cost because water and waste pipes have to be repositioned.
A full renovation is a good opportunity to replace old pipework before walls and floors are finished.
You should also consider the heating system. A new central heating system can add several thousand pounds to the project, while a boiler replacement can cost roughly £1,800 to £4,000 nationally according to current cost data.
Other renovation costs to consider
The eight areas above are important, but they do not make up the entire renovation.
You may also need to budget for:
- Plastering
- Decorating
- Windows
- Doors
- Insulation
- Heating
- Joinery
- Waste removal
Structural alterations can add considerably to the cost. Removing a wall, for example, may require an engineer, steel beam, building control approval and additional making-good work.
Professional fees should also be considered:
- architect
- structural engineer
- Interior designer
- building surveyor
- planning consultant
- party wall surveyor
London projects can have additional costs for scaffolding, parking, permits, access and party wall matters. These costs can be particularly noticeable on terraced properties.
Do you requirement planning permission?
Before undergoing any major home renovations, you will need to check if you require planning permission, which can be submitted to your local council. If all your renovation work is internal and cosmetic, there is no need for any planning permission, but anything external such as adding side or rear extensions, converting a garage into living space or adding a loft conversion - will typically require planning permission and require approval by the council.
You will likely need an architect to draw these plans which are submitted to the council for approval - and this can take a few weeks or months depending on the scale of your plans.
How much contingency should you allow for a home renovation project?
For a straightforward renovation, 10% is a sensible starting point as a contingency. For an older property or most sophisticated house build, 15% or even 20% may be more appropriate.
This is because opening up an old house can reveal problems that were not visible during the initial survey.
You might find damaged timber, old plumbing, inadequate wiring, damp, asbestos-containing materials or structural movement.
For example, a £75,000 renovation with a 15% contingency would mean keeping around £11,250 available for unexpected costs.
It is better to have the money available and not need it than to stop work halfway through the project.
How to keep a renovation under control
The best way to manage costs is to decide what you want before work begins.
Changing your mind once the project is underway can be expensive. Moving a wall after electrics and plumbing have been installed can mean paying for the same work twice.
Get detailed written quotations rather than relying on a single total figure.
The quotation should clearly explain what is included, what is excluded and which materials have been allowed for.
It is also worth comparing several contractors. The cheapest quotation is not automatically the best value, particularly if it leaves out important parts of the work.
Where possible, keep the layout of kitchens and bathrooms close to the existing layout. Current renovation cost research suggests that retaining existing plumbing and electrical positions can save around £2,000 per project across kitchens and bathrooms.
Final thoughts
A full home renovation in the UK can cost anywhere from tens of thousands of pounds to well over £150,000, depending on the property and the amount of work required.
For a typical three-bedroom home, a sensible starting budget might be around £50,000 to £100,000 for a substantial renovation outside London, while London projects can easily reach £100,000 to £200,000 or more.
The condition of the property is just as important as its size.
A small Victorian house requiring structural repairs, a new roof, full rewire and replumb could cost more than a larger modern property that only needs its finishes and services upgraded.
The best approach is to survey the property first, create a detailed scope of work, get several quotes and keep a contingency fund.
Most importantly, treat online renovation prices as planning figures rather than promises. Your property's condition, location, access and chosen specification will ultimately determine the final cost.
How To Top Up Finance During a Building Project When Cash Flow is Running Short
Running short of cash during a building project is more common than many people realise. Even with careful planning, unexpected costs can arise. You might face higher material prices, weather delays, design changes, or labour shortages that push your budget beyond the original plan.
According to a UK construction report, around 60% of building projects experience some form of cost overrun, while 40% of small developers face cash flow issues at least once during a project.
Perhaps you have started with a bridging loan to pay for your renovations or development finance, but have come into extra costs. No matter how hard we try to prepare, we can often find ourselves with unexpected costs and issues with a property build.
These problems often mean you need to find extra funds to complete the build, pay contractors, or cover materials before the project is finished. In these moments, it’s essential to explore the different finance options available, depending on your circumstances and how close the project is to completion.
What are your options if you need to top up your building project?
There are several ways to boost your cash flow and keep your building project on track. These include:
- personal loans
- mezzanine finance
- investor funding
- credit cards
- second or third mortgage
Each option has its benefits and risks, so it’s important to understand them clearly before deciding.
Compare top-up finance options
| Type of Finance | What It Is | Typical Amount You Can Borrow | Typical Interest Rate Range |
| Personal Loan | Unsecured loan repaid monthly over 1–5 years | £1,000 – £25,000 | 6% – 15% |
| Mezzanine Finance | Secondary funding sitting behind the main loan | £50,000 – £2,000,000+ | 10% – 25% |
| Investor Funding | Private or institutional investment for a share of profits | £10,000 – £1,000,000+ | Profit-based or negotiated |
| Credit Cards | Short-term revolving credit for small expenses | Up to £10,000 (limit dependent) | 20% – 35% |
| Second Mortgage | Secured loan against property equity | £10,000 – £500,000+ | 4% – 9% |
| Third Mortgage | Additional secured loan on property with existing mortgages | £20,000 – £300,000+ | 10% – 20% |
What is a personal loan and how can it help?
A personal loan can be a straightforward solution if you need a smaller amount to cover short-term costs. It does not usually require collateral, which makes it easier and quicker to obtain than a mortgage or business loan. Most personal loans are repaid over one to five years with fixed monthly payments, giving you predictability in managing your budget. (Source: Salad)
However, personal loans often have limits on how much you can borrow, typically up to £25,000, and interest rates can vary depending on your credit score. They are most useful for smaller cost overruns or unexpected expenses that need quick payment.
What is mezzanine finance and when is it used?
Mezzanine finance is a specialist type of funding often used in property development. It sits between a senior debt (like a mortgage) and your own investment, acting as a top-up when your main loan does not cover all project costs. Lenders provide funds in exchange for higher interest rates or sometimes a share in the project’s profits.
This type of finance is useful when the project is close to completion but extra capital is required to finish it. It can be arranged relatively quickly, but the cost is higher than standard loans, so it’s important to calculate whether the potential return on your project justifies the expense.
Can speaking to investors help you complete your project?
If your building project shows good potential for profit, attracting private investors can be a smart option. Investors may be individuals, firms, or property funds willing to put money into your project in exchange for a percentage of the profit or ownership.
This approach works well if you have a solid business plan and clear timelines for completion. Investors can provide large sums of money, sometimes without the strict repayment schedules of traditional lenders. However, you may have to share control or profits, which can be a trade-off worth considering for the sake of completing your project.
Should you use credit cards for construction expenses?
Credit cards can be a fast way to pay for smaller costs such as materials, equipment hire, or fees, especially if your cash flow problem is short term. Some builders use business credit cards to manage spending and benefit from interest-free periods.
However, relying too heavily on credit cards can become risky. Interest rates are usually high—often above 20%—and if payments are missed, debt can grow quickly. It is best to use this option only for temporary gaps and ensure repayment as soon as possible.
How can a second or third mortgage help fund your project?
A second mortgage, also known as a secured loan, allows you to borrow against the value of a property you already own. This can provide a larger amount of money than a personal loan, making it suitable for bigger projects. The interest rate is often lower because the loan is secured by property, but the risk is higher since your home or building could be at stake if repayments are missed.
In some cases, if you already have a second mortgage, you may consider a third mortgage, though this is much rarer and usually comes with strict conditions and higher rates. It is often used by experienced developers who are confident in the project’s profitability and have clear repayment plans once the property is sold or refinanced.
See also second charge loans.
What is the best option for your situation?
The best choice depends on how much funding you need, how quickly you can repay it, and the level of risk you are willing to take. For smaller shortfalls, a personal loan or credit card may be enough. For larger projects, mezzanine finance or investor funding can provide the capital needed to finish the build.
Always calculate your project’s potential return and repayment capacity before committing. Keeping communication open with lenders, investors, and contractors can also prevent future cash flow problems. With the right approach and planning, you can stabilise your finances, complete your project, and still achieve a successful outcome.
How Can You Sell a Property with a Sitting Tenant in the UK?
Selling a property with a sitting tenant means selling it while the tenant is still living there and paying rent. In the UK, this is a legal and common practice, especially for landlords who want to sell to other landlords or investors. However, there are some important things to think about before going ahead with this type of sale.
What Is a Sitting Tenant?
A sitting tenant is someone who has a legal tenancy agreement and continues to live in the property while it is being sold. This can include tenants on rolling contracts or those with fixed-term agreements. The tenant keeps the same rights after the sale, and the new owner takes over as the landlord.
It is often less desirable to buy properties with sitting tenants because rent is fixed for a certain price due to laws surrounding 'fair rent' and there is no certainly over the quality of tenants. With sitting tenants, there are opportunities to buy the property below market rate, sometimes at 75% or 80% of the value.
If It's Less Desirable, How Do You Sell A Property With a Sitting Tenant?
- Open market - through agents
- Through auction (see auction finance loans)
- Through a private buyer (see companies that buy properties with sitting tenants)
Do You Have to Evict the Tenant First?
No, you do not have to evict the tenant before selling the property. In fact, many buyers are happy to purchase homes with sitting tenants, especially if the tenant has a good history of paying rent and taking care of the property. Evicting a tenant takes time and can be costly. If the goal is simply to sell the home and not to use it yourself, selling with the tenant in place is often quicker and easier.
However, if you want to sell to someone who wants to live in the property, you may need to give the tenant notice. In England, this usually means giving a Section 21 notice, which gives tenants at least two months to leave. If the tenant does not leave, you might need to go to court to get possession of the property.
Can You Increase the Rent Before Selling?
You cannot simply increase the rent to charge more without following the proper steps. If the tenant is in a fixed-term tenancy, the rent usually cannot be changed until the term ends, unless the contract allows it.
For periodic (rolling) tenancies, you can increase the rent, but you must give proper notice. In England, this is at least one month’s notice for monthly rent. The rent must also be fair and in line with similar properties in the area.
Raising the rent just before selling might not be the best idea, as it could upset the tenant and make the property harder to sell. It’s often better to let the buyer decide on rent changes after the sale.
Can You Update the Tenancy Agreement?
You cannot force a tenant to sign a new agreement just because you are selling - this will lead to a tenant deposit dispute. The existing tenancy agreement remains valid and will transfer to the new owner. If the tenant and new landlord agree, a new contract can be signed after the sale, but this is not required.
Buyers will want to see the current tenancy agreement, rent payment records, and any deposit protection details. This helps them understand what they are taking on and shows that the sale is being handled properly.
Pros of Selling with a Sitting Tenant
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You continue receiving rental income until the property is sold.
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The property is more appealing to investors who want instant rental returns.
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The sale process can be faster, as there’s no need to wait for tenants to move out.
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No need to spend time or money fixing up or staging the property for viewings.
According to government figures from 2023, around 4.6 million households in England live in private rented homes, so there is strong demand for investment properties.
Cons of Selling with a Sitting Tenant
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Fewer potential buyers, as most homebuyers want to live in the property themselves.
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The sale price may be slightly lower due to reduced control for the new owner.
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Buyers may be put off if the tenant has not maintained the property well.
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Can make the property less attractive to non-investor buyers.
Conclusion
You can legally sell a property with a sitting tenant in the UK, and it can be a smooth process if done properly. You don’t have to evict the tenant, but you must provide all the legal documents and follow the rules.
Selling with a sitting tenant can save time and keep rental income coming in, but you may get fewer offers and a slightly lower price. Think about your goals and speak to a solicitor or estate agent to make the best decision for your situation.
What Does a Property Manager Do and Should I Hire One?
A property manager oversees the day-to-day operations of rental properties on behalf of the landlord or owner. Whether it is a business, residential or commercial building, there may be multiple occupants and the role of the property management is to help with things like collecting rent, sorting out building maintenance and repairs and in some cases, disciplining and evicting bad tenants.
The roles of property managers includes:
- Selling vacant units
- Screening tenants
- Collecting rent from tenants
- Coordinating maintenance and repairs
- Enforcing lease agreements
- Handling tenant complaints or disputes.
- Evicting of tenants
- Ensuring compliance of local and state property laws
- Financial reports
- Supervising on-site staff, builders or maintenance workers
As a busy landlord with a big portfolio, you may be more interested in building and growing your property portfolio and getting the finance and completing the sales. Therefore, you might want to sub out the property manager role to someone to deal with the day-to-day running of it.
This could be someone that is hired on an hourly rate, contractual basis, part-time or full-time. You may insist on having multiple property managers for the same building or the same manager for multiple buildings.
What Kind Of Building is a Property Manager Suited For?
A property manager is ideal for a residential or commercial building with a lot of tenants and rooms, both occupied or vacant. This includes student properties, office spaces, flats and homes that are rented out, residential blocks and more. Others buildings might include those where the owner or landlord is not regularly there, such as AirBnBs, holiday rentals, chalets, villas and more.
A property manager may be excessive for a one-off individual property, but rather look after a portfolio or a bit residence or commercial building which requires ongoing maintenance and a desire to keep lots of tenants happy.
A big residential block would be a good candidate for block managers or property managers, with lots of maintenance usually required and a lot of tenants to stay on top of.
How Much Do Property Managers Charge?
Property management fees will vary based on location, with property managers in London likely to be a little pricier. It may also depend on the type of property and the services provided. No doubt that newer buildings may be less maintenance compared to a huge building which is old and needs a lot of ongoing work.
Typically, property managers charge between 8% and 12% of the monthly rental income for full-service management of residential properties. If a building is generating £10,000 a month in rent, the property management agency or individual, will likely charge £800-£1200 per month.
But this may depend on various factors. There may also be reduced rates for the more tenants they manage and the economies of the building.
Additional fees might include leasing fees (equal to half or a full month’s rent) for finding new tenants, maintenance markups or advertising expenses to find new tenants.
For vacation rentals or short-term rentals, the management fee might range between 20% and 30% due to more frequent turnovers and hands-on management.
Is It Worth Hiring a Property Manager?
Hiring a property manager is worth considering if you lack time, live far from the property, or are inexperienced in rental management. Or if you are a busy landlord who needs to focus on growing their portfolio, accessing bridge finance, talking to investors and you travel around a lot.
Property managers can save you time and stress, ensuring legal compliance and minimising tenant issues. However, their fees can significantly cut into your rental income.
For small properties or if you’re hands-on and nearby, managing it yourself may be more cost-effective.
On the other hand, for owners with multiple properties, complex rentals, or little experience, a property manager can add value by optimising occupancy, reducing tenant turnover, and ensuring efficient property operations.
The decision ultimately depends on your situation, priorities and the complexity of managing your property.
For landlords interested in hassle-free property management with guaranteed rent payments, there are services that provide rent guarantee coupled with full property management, maintenance, and tenant relations at no direct cost, ensuring peace of mind and steady income even through void periods.
How Much Can Solar Panels Add Value to My Property?
Solar panels could add anywhere between 2% to 4% to a house’s value; however, some solar experts say that this may not be immediate. While it is not clear exactly how long they will take to add value, what is clear is that solar panels will not detract from property value and could make it far easier to sell the property.
Installing solar panels on a residential property is a smart long-term investment as well as a step towards more sustainable living. Beyond adding value to the property, there are plenty of benefits to adding solar panels including reduced carbon footprint and reduced energy costs.
Here, we explore the different factors that could impact the amount of value that solar panels could add, how much money they could save you and how to get the most out of your solar panels.
How Much Do Solar Panels Add in Value?
Eco Experts say that solar panels can add 2% to 4% to the value of your home depending on their size, quality and age. Therefore on a £1 million home, it could add in the region of £20,000 to the property's value.
When a property features solar panels, it can make it more attractive to potential buyers - including buyers who want to make their home more energy efficient, reduce their carbon footprint as well as cost-savvy buyers who want to save on their energy bills on a long-term basis.
In certain areas, solar panels may be more valued than others, certainly if you are adding solar panels in London, this could add more value than in a colder part of the country where there is less sunlight.
| Value of The Home | Valued Added at 2% | Value Added at 4% |
| £500,000 | £10,000 | £20,000 |
| £600,000 | £12,000 | £24,000 |
| £700,000 | £14,000 | £28,000 |
| £800,000 | £16,000 | £32,000 |
| £900,000 | £18,000 | £36,000 |
| £1,000,000 | £20,000 | £40,000 |
How Does The Type of Solar Panel Affect Value?
The amount of value that solar panels add to a property will depend on multiple factors including:
- Size - the size of the solar panels play a role. As larger solar panel systems generate more electricity, they tend to add more value to a property.
- Efficiency - the greater the efficiency of the panels, the more sunlight they can convert into electricity and the more value they hold.
- Location - depending on where you have your property, your solar panels will get a different amount of sunlight which impacts their efficiency. That’s why properties with solar panels in sunnier regions of the UK will likely hold more value
- Energy prices - as energy costs rise, households have a greater potential to save with solar panels, making them a more appealing option.
How Much Money Can Solar Panels Save Households?
Electricity bills
UK households can save anywhere between £300-£700 annually by installing solar power - cutting their electricity bills by around 50-70%. The savings grow for bigger houses; for example, one- to two-bedroom houses could save around £290 per year whereas three-bedroom houses may save an average of around £480.
Energy Independence
When a house is fitted with solar panels, the household becomes less reliant on the grid for their electricity needs. This means they are protected against future energy price hikes and could save a great amount of money.
Government schemes
With the Smart Export Guarantee (SEG) scheme, homeowners have the opportunity to make money off their solar panels by exporting surplus electricity back to the grid in exchange for payment from the energy supplier.
What Are The Long-Term Financial Benefits of Solar Panels?
While it can take time to see the financial benefits of solar panels, they do come and they are substantial. In fact, solar panel systems typically pay for themselves within 6-12 years.
The initial cost of a solar panel installation, as of April 2024, is between £2,500 - £3,500 to £12,000 - £13,000, depending on the size and other key factors. However, after making that initial investment, your energy bills will benefit from significant reductions.
You can expect to save between £440 and £1,005 annually thanks to solar power installation. In addition, you could even earn money by selling extra energy back to the supplier grid for a fee.
Within around 6-12 years, depending on a range of factors, you will have recuperated your investment. Especially as energy costs increase, the payback period becomes even shorter.
Additional Value
In addition to financial benefits, solar panels also make your home more valuable from an environmental perspective.
When you fit solar panels on your residential home, you reduce carbon emissions by around 1.5-2 tonnes annually and help to contribute to a cleaner environment.
These panels can also be a huge drawer for buyers seeking a more sustainable lifestyle as the home aligns with their goals.
Choosing to invest in solar panels will help add value to your property and save you substantial money in the long- term, as well as making it a more attractive option to potential buyers. With a chance to save money, earn additional revenue and sell your home more easily, investing in solar panels is a worthwhile investment.
Can a home battery storage system really save you money? 5 things you MUST think about
This piece was kindly contributed by Dave Roberts, UK MD at energy storage specialist GivEnergy.
A home battery storage system can help you cut energy bills and carbon emissions. However, before diving in, there are plenty of factors you need to consider when choosing the right system for you. Break-even point, battery capacity, renewables, and everything else in between all require close attention. With high upfront cost, it’s important to see a home battery storage system as a long-term investment. Choose the wrong system, and you could end up with diminished ROI and slower payback periods. Choose the right system, however, and you’ll reap the financial and environmental rewards.
Here, we bring you five things you should consider before investing in a home battery storage system.
1. Upfront cost
How much you spend upfront will help determine how much a home battery can save you in the long-run.
The total upfront cost of a home battery includes the following:
- Battery unit and battery inverter
- Installation
… and if you want solar PV panels:
- Solar panels (number of, and quality of panels will affect overall cost)
- Installation
Here are the latest average battery and solar panel costs in the UK, according to figures from the Microgeneration Certification Service (MCS).
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Batteries
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For an average 1-2 bedroom property with 6 panels
Around £2,500
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For an average 3-bedroom property with 10 panels
Around £4,500
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For an average 4+ bedroom property with 14 panels
Around £8,000
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Solar panels
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For an average 1-2 bedroom property with 6 panels
Around £4,216
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For an average 3-bedroom property with 10 panels
Around £7,026
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For an average 4+ bedroom property with 14 panels
Around £9,837
Other things to consider in upfront cost
Remember that a home battery storage system is for the long-term. You want a system which will help save as much money as possible over as long a time frame as possible.
Pay attention to the following when choosing a battery storage system:
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Warranty / design life
Most home battery storage systems come with a manufacturer’s warranty, and will have a specified design life. (Note that those two figures aren’t necessarily the same length of time – design life will typically be longer than a warranty period.)
So, check that the system’s warranty / design life is in line with the anticipated savings to cover its cost.
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Depth of discharge (DoD)
DoD refers to the amount, in percentage terms, of battery capacity which can be discharged safely.
For example, let’s say a 12kWh battery has a DoD of 85%.
85% of 12kWh gives you a total of 10.2kWh. So, in practice, you can only use 10.2kWh of battery capacity before it needs to be recharged.
Batteries with a higher DoD will allow you to get more out of your battery. As a general rule of thumb, 80% DoD should be a minimum for home batteries. Premium products may go up to 100% DoD.
In the long-run, it might be worth spending a little extra cash upfront on a battery with higher DoD.
2. Payback period
Otherwise known as ‘break even point.’ Payback period refers to the time it takes to make enough savings to cover the upfront cost of your system.
Think of it like this.
Let’s say you spend £11,500 on a solar PV and battery storage system.
You save £11,500 on bills over seven years. Your payback period is… seven years.
You save £11,500 on bills over eight years. Your payback period is… eight years.
You get the idea.
Calculating your payback period is essential to make sure you choose a system which will save you money.
Other than upfront cost mentioned above, here are a few other things you need to factor into your payback period:
- Cost of electricity (if you’re storing cheaper electricity from the grid)
- Average use of electricity (factoring in seasonal variations, addition of high-powered devices, etc.)
- Generation of renewables (if you have installed renewable technology)
Let’s delve into some of these in a bit more detail.
3. Electricity usage
Knowing roughly how much electricity you use is the next key step towards sizing a home battery which will save you money.
Electricity usage is measured in kilowatt hours (kWh).
Let’s say you have a washing machine with a 1500W (1.5kW) power rating. You use it for three hours per week. That gives you a total weekly usage of 4.5kWh.
Use this simple formula to calculate the electricity usage of any electrical household device:
Power (kW) x no. of hours used = usage in kWh
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Monitoring electricity usage
Fortunately, keeping track of how much electricity you use has never been easier.
For monitoring overall household usage, a smart meter will suffice.
Meanwhile, for individual devices, you may want to consider using smart plugs.
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Adding high-powered devices
Your electricity usage may change over time as you add new electrical devices in your home.
New washing machine? New dishwasher? Lucky enough to have a hot tub?
Make note of how much electricity these devices will use.
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Seasonal variations
Think about how your electricity usage will change throughout the year.
For instance, average UK electricity usage tends to spike during December and January, and then drop over the summer months.
If you have a heat pump, your electricity will increase whenever you heat your home.
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Sizing a suitable home battery storage system
Here’s one idea for sizing a suitable home battery.
Make a rough calculation of your peak daily electricity usage during the course of a year; this will likely be during the height of winter.
You can then choose a battery storage system with at least enough capacity to cover said peak electricity usage. This way, you can get the most out of your battery storage system, even when your electricity usage is at its highest.
4. Cost of electricity
We know what you’re thinking.
‘A home battery storage system is supposed to save me money on bills. Why do I need to think about the cost of electricity?!’
Allow us to explain.
Let’s say you don’t have the means to install solar PV panels. Perhaps, you don’t have the roof space. Or maybe, you can’t afford a solar installation.
Standalone battery storage is a viable alternative, especially for those on a smart time-of-use tariff.
Charge your battery during off-peak hours when electricity is cheaper, such as overnight. You can then use that stored energy to power your home during more expensive peak hours.
This way, you can avoid more expensive electricity charges.
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For example…
... let’s say you live in the northeast of England and are on Octopus Energy’s Agile tariff.
During June 2024, the average electricity price during peak hours is 30p per kWh. Meanwhile, the average electricity price during off-peak hours is 15.8p per kWh.
In theory, this means you could save an average of 14.2p per kWh of electricity used, assuming you charge and discharge your battery strategically.
If standalone battery storage is for you, think about how much electricity your property uses during peak electricity hours. Choosing a battery with enough capacity to cover this usage will help you maximise the money you can save on bills.
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Even if you don’t have a standalone battery…
… factoring in electricity prices could still be important.
If you have solar, there will be days when your panels generate little energy. In this case, you may want to fill your battery up with cheap electricity from the grid to make up for the lack of solar.
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Bear in mind…
… nobody has a crystal ball and can’t say for sure what future electricity prices will be.
Electricity prices depend on:
- Your supplier
- Your tariff
- Price caps
However, getting a rough calculation will still help you size the right home battery storage system.
5. Solar PV
Home battery storage coupled with renewables is the perfect combination.
You have a means of generating clean energy, as well as a means of storing it for when you need it most.
Note that…
… other renewable technology can be combined with battery storage: wind turbine for home, hydroelectric generator, etc.
However, due to scalability and relatively low cost, solar PV panels tend to be the renewables of choice for homeowners.
So, for the sake of brevity, let’s stick to solar panels for now.
Solar and storage
To make the most of your solar PV panels, you need sufficient battery storage capacity.
Otherwise, a lot of the solar energy you generate will be wasted.
You need to know the peak power of your solar array. This is measured in kilowatt-peak (kWp). This number tells you the maximum amount of energy your panels can produce in ideal conditions. (I.e., well positioned panels in direct sunlight.)
When sizing battery storage to complement your solar array, consider choosing a battery with at least enough capacity to store your panels’ kWp.
This means on days when your solar panels are generating as much energy as possible, you’ll be able to store as much of it as possible.
What about days when you don’t generate much solar?
Inevitably, there will be days when your solar panels generate little energy, such as during cloudy and overcast weather.
On days like these, you could consider storing cheaper electricity from the grid to make up for the solar energy you don’t generate.
In short, your home battery storage system can be a mix and match between solar, and a standalone battery.
If you’re not sure about solar…
… check out this solar panel calculator from Energy Saving Trust. This will help you determine what kind of solar PV array is right for you.
So, can a home battery storage system really save you money?
With thorough consideration, the right home battery storage system really can save you money. Not to mention you can significantly reduce your carbon emissions.
All things considered, it’s near-impossible to size a home battery storage which will exactly meet your needs. Your energy needs may change over time. You don’t know what the price of electricity will be in 5, 10, 15 years’ time.
However, you can get a system which is as close as possible to meeting your needs, if you do your homework.
Consider that upfront cost, calculate that capacity, and size up that solar.
This will give you the best chance of choosing a home battery storage system which will save you money in the long run.
Good for you. Good for your bills. Good for going green.
Is Having a Good Credit Score Important For Getting a Mortgage?
Yes, having a fair or good credit score is very important when applying for a new or existing mortgage. Your credit score is one of the things that mortgage brokers, lenders and banks look at when determining your eligibility, including other factors such as your income, equity in your current home, employment status, age and current debt levels.
By having a good or fair credit score, it not only boosts your eligibility for a mortgage, but can help you access the best mortgage rates on the market because you are deemed to be a safer person to lend money too. Over the course of the mortgage term, this could help you save hundreds or thousands of pounds per month on your mortgage bills.
Based on rates as of May 2024, a good credit score customer can pay 4.64% per month on their mortgage, compared to someone with bad credit who might pay 7.3% (Source: SimplyAdverse.co.uk)
What is a Credit Score and Why is it Important?
A credit score is a numerical value which gives an indication of how good you are to lend to - for products including car finance, mortgages, credit cards and loans. You are automatically given a credit score in the UK when you turn 18 and it is a score that you build up over time by paying off different things like credit card bills, utility bills and even mobile phone bills.
With your score ranging from 0-999 (higher is better), your credit score does not usually stay still, it is something that improves or decreases over time based on how well you are paying off your current debts and bills.
A credit score is important because it is essentially your ticket to financial freedom and the ability to borrow money through credit cards, get a mortgage and buy a house or even use car finance and buy a car. When it comes to credit cards and personal loans, credit checks are pretty much standard with every application. Without a good credit score, you will struggle to get access to mainstream financial products needed to live your life.
But with a bad credit score which is achieved by missing lots of payments over a long period of time, not only is it hard to get access to credit and finance, but you will always suffer by paying very high rates of interest.
How is a Credit Score Formed?
Credit score information is managed by credit reference agencies such as Experian and Equifax and when a mortgage broker or lender wants to check your score, they will usually pay one of these agencies a small fee each time.
The information about you is managed in real-time, so if you miss a payment today, if you will impact your credit score tomorrow - and so all potential lenders and creditors have an up-to-date insight into your financial position and will not lend to you if they are seeing recent defaults and payments in arrears.
Your credit score is made up of multiple things including:
- Payments history (35%)
- Amounts owed (30%)
- Length of credit history (15%)
- New credit (10%)
- Credit mix (10%)
Does My Credit Score Affect My Remortgage?
Yes, your credit score, whether it is good or bad will affect the rates you pay when you remortgage.
When you get a mortgage, it is often for a few years, such as a 2-year fixed or 5-year variable and after this period expires, you get moved onto the Standard Variable Rate (SVR) which is often very high. So it is common for people to remortgage under fresh terms, but if their credit score is worse since their first mortgage, the rates and terms could be significantly worse or they may struggle to get approved.
Does it Matter if My Credit Score is Getting Worse and I Need a Mortgage?
Yes, it does matter if you need a mortgage but your credit score is getting worse and you are behind on various payments. To get a mortgage and qualify for the best rates, you should have a stable income, employment, not more debt than you can handle and a good or fair credit score.
There are a number of things you can do to maintain your credit score or build it up, including:
- Using credit builder credit cards - this can help you get into the swing of paying off credit on time and this will help build up your score
- Join the electoral register - one of the easiest things you can do is join the electoral register for free and it adds credibility to your name and your credit status
- Close accounts you don't need - having multiple store cards or credit cards does not make your credit look good, regardless of whether you use them, potential lenders think that it is dangerous to have access to so much credit. So very simply, just remove the cards you don't use or need.
- Disassociate from people with bad credit - if you share joint accounts or credit cards with spouses or family members who have bad credit, you are often 'guilty by association' and it is assumed that you will be helping them financially, even if you are not. If you are sharing an account with someone with bad credit, simply go solo.
- Check your credit score regularly - you can check your credit report for just £2 or sign up with one of the credit reference agencies who will send you monthly updates or you can check on demand. Being on top of your credit score can be very useful to get that number as strong as possible.
Do Bridging Lenders Care About Your Credit Score?
Interestingly, not as much. For bridging lenders, they look more at the value of the property you are borrowing against or for and its potential value. Whilst some lenders and brokers do consider credit scores, it is not as vital to be approved and funded. Some providers just don't want to see recent arrears or bankruptcy, but some lenders offer bridging loans to help people come out of these circumstances, so there is certainly lenience.
What Jobs Are There For Accountants in Property Management?
Accountants play a pivotal role in the property management sector, contributing their financial expertise to various areas of the industry.
From property development finance to construction finance and bridge finance, accountants are integral to ensuring the financial health and success of property ventures.
Let's delve into the diverse career opportunities available for accountant services in property management in the UK.
1. Property Development Finance
In property development, accountants are tasked with managing financial aspects throughout the development lifecycle. This includes assessing project feasibility, budgeting, financial forecasting and overseeing costs to ensure projects remain within budgetary constraints.
Accountants also play a vital role in securing financing for development projects, liaising with lenders, and optimising financial structures to maximise returns on investment.
2. Construction Finance
Accountants in construction finance are responsible for managing the financial operations of construction projects. This involves budgeting, cost control and financial reporting to monitor project expenditures and ensure adherence to budgets.
Accountants work closely with project managers and contractors to track costs, analyse variances and implement cost-saving measures to enhance project profitability.
Additionally, they play a key role in managing cash flow, invoicing and procurement to maintain project liquidity and financial stability.
3. Bridge Finance
Bridge finance, also known as bridging loans, provides short-term financing to bridge the gap between the purchase of a new property and the sale of an existing property.
Accountants specialising in bridge finance assess the financial viability of bridge loan transactions, evaluating risks and returns to determine optimal financing structures. They work closely with lenders and borrowers to structure loan agreements, conduct financial due diligence and ensure compliance with regulatory requirements.
Accountants also monitor loan performance, manage repayment schedules and mitigate financial risks associated with bridge financing.
4. Financial Analysis and Reporting
Accountants in property management are responsible for financial analysis and reporting, providing insights into the financial performance of property portfolios and investment projects. This involves preparing financial statements, conducting variance analysis, and providing financial forecasts to support strategic decision-making.
Accountants also assess investment opportunities, perform financial modeling and evaluate risk-return profiles to optimise investment strategies and enhance portfolio returns.
5. Tax Planning and Compliance
Tax planning and compliance are critical aspects of property management, and accountants play a key role in ensuring compliance with tax regulations and optimising tax strategies to minimise tax liabilities.
Accountants advise property developers, investors and property management companies on tax-efficient structures, capital allowances and tax incentives available in the property sector.
They also assist with tax planning for property acquisitions, disposals and restructurings, helping clients navigate complex tax issues and maximise tax savings.
6. Financial Management and Control
Accountants in property management are responsible for financial management and control, overseeing financial operations, internal controls and risk management processes.
They develop financial policies and procedures, establish budgetary controls, and implement internal audit programs to safeguard assets and ensure compliance with financial regulations.
Accountants also monitor key performance indicators, assess financial performance against targets, and implement corrective actions to address variances and optimise financial outcomes.
Diverse Career Opportunities
Tthe property management sector offers diverse career opportunities for accountants, spanning financial analysis and reporting, tax planning and compliance, and financial management and control.
Accountants play a crucial role in managing the financial aspects of property ventures, ensuring financial viability, maximising returns on investment and mitigating financial risks.
With your financial expertise and specialised knowledge, find your next role to see how you can contribute to the success and sustainability of property projects and portfolios in the UK.