Two-bedroom house could be yours for just £7,000

It comes with an outbuilding and double glazing - so what's the catch?


The property exterior

It's a handy little Victorian terrace, within walking distance of the centre of Gainsborough, Lincolnshire. It has two bedrooms, an outbuilding, and even double glazing - all for the bargain price of just £7,000.

So what's the catch? And would you fancy Britain's cheapest home?

The home

According to ITV, the auction guide price means that this is a contender for the title of Britain's cheapest house. At the moment this is held by a two-bedroom terrace by the railway in Ferryhill Station, County Durham. It had been empty for a decade, and had no internal ceilings or kitchen: it sold for £8,250 in March 2012. If this house goes for £7,000 it will easily take the title.

However, this doesn't necessarily make the house an unmissable bargain. It is in a terrible state after a terrible fire, which destroyed much of the property, and led it to be abandoned in chaos. The Daily Mail reported that it had been targeted by arsonists.

The burned-out bedroom still has a charred bed, piled high with debris that used to belong to the inhabitants. The windows of the front room have been boarded up and the sofa upturned on old boxes and duvets. The kitchen is in no fit state either, and the bathroom is filthy, shambolic and needs to be ripped out.

Is it a good investment?

Any buyer would need to completely renovate the home. Obviously the cost of the renovation will depend to a great extent on the approach the buyer takes, and the skills they have themselves. However, assuming they get someone in to do all the work, it could set them back as much as £50,000, which would bring the total cost to £57,000.

It's also worth bearing in mind that as we reported in February, houses with very low guide prices often attract so much attention that they sell for much more. A terrace in the Welsh Valleys sold that month for £15,000 - after being listed at £8,000.

In the previous October, a three-bedroom house in Stockton-on-Tees near Middlesborough was expected to become the cheapest in the country after being listed at auction for £750. In the end it sold for £14,000.

In the area you can get a two bedroom terraced Victorian property which has been recently renovated, for less than £55,000, and one in reasonable condition for £45,000. In fact, you can get homes which have been abandoned in the middle of a renovation project for between £20,000 and £35,000. It's worth noting that a huge number of the properties at this end of the market are being auctioned, or have seen their prices cut dramatically since first hitting the market, so they could end up selling for even less.

It's clearly not a market where someone who pays £14,000 for the property and £50,000 to renovate it is going to make any money.

On the other hand...

However, for the right person this could be a nice little earner. Assuming it sells for around £14,000, and that the right people could renovate it for £20,000, they'll have a fully-refurbished home for the grand total £34,000.

They could sell for £55,000 and walk away with a decent profit, or rent it out for anything from £250 to £350 a month - which would be a reasonable return on their investment.

But what do you think? Is this a great opportunity, or a ridiculous risk?

The cob house that was built for £150

The cob house that was built for £150