Despite the sunny weather, storm clouds have been gathering over the UK economy for quite some time now. The UK housing market, however, has shown remarkable resilience and has marched on relentlessly, increasing drastically every month.
It is no surprise then that there is so much potential in the world of property – particularly if you’re willing to put cash, time and effort into ‘flipping’ a house.
House flipping refers to buying a property at a low price and transforming it to add value and then putting it back on the market. With an increased demand for move-in-ready homes, flipping houses has become a staple investment strategy. And now the top five cities to do exactly this have been revealed.
New research from CIA Landlord Insurance revealed the top five cheapest cities to renovate a house in the UK by analysing the cost and availability of ten essential tradespeople in each city.
The report gathered data from the 28 most populated cities in the UK and analysed the average daily rate of 10 types of skilled tradespeople, essential to renovating a home.
The 10 trade industries utilised in this research include builders, joiners, handypersons, plumbers, plasterers, electricians, glaziers, tilers, gardeners and painters and decorators.
The top five cheapest cities to flip a home:
1. Leicester
According to the report, eight of the top 10 places to flip a home are in the north of England – with Leicester securing the top spot. With the lowest day rates for builders (£173), plasterers (£158) and handymen (£56), the combined day rate of the 10 tradespeople essential to flipping a home in Leicester totals £1,723.
2. Coventry
Coventry came in second with the third-cheapest cost for painters (£155) in the UK and the second cheapest for plasterers per day (£164). However, potential landlords will be wiser to avoid investing in a property requiring electrical changes, as electricians in Coventry cost an average of £237 per day - the 11th most expensive daily cost across the UK cities researched.
3. Wolverhampton
Home to the second most inexpensive glaziers, with costs on average of £161 per day, Wolverhampton came in the third position as the most cost-effective city per day to renovate a property.
However, landlords should be aware that joiners, plasterers and handymen are some of the more expensive tradespeople to hire in Wolverhampton. Therefore, looking for a property with minimal need for these trades, for example, a home which requires minor touch-ups, such as paintwork, will help limit the cost of renovation.
4. Birmingham
Birmingham makes an appearance at number four, with painters and decorators in Birmingham charging the third-lowest day rate in the UK alongside Sheffield and Bradford (£165 per day). Birmingham also has the third lowest-priced glaziers in the UK at £164 for a day's work on average. This makes Birmingham a cost-effective city for investment properties needing re-decoration.
5. Cardiff
Rounding the top five is Cardiff - home to the second cheapest electricians (£209) and builders (£177) per day in the UK, making it a great city to renovate a property in need of rewiring or structural changes.
However, there are a number of trades in Cardiff that are not as competitively priced as electricians and builders. Painters in Cardiff charge a daily rate of £171 and joiners an average of £180, meaning Cardiff ranks 12th across the 28 cities as the most expensive for these trades.
