House in valleys goes under hammer for £0

A terraced house overlooking the Welsh valleys is going up for auction with a £0 guide price, but the renovations needed may test even the most experienced of builders.

The three-bedroom house in New Tredegar, Caerphilly county, has significant fire damage and has been described by the auctioneer as being in a “sorry state”.

The property has no reserve price which means that it is on the market for £0 until someone bids on it.

But Martin Roberts from BBC One’s Homes Under the Hammer has warned that the guide price is “nothing more than a marketing ploy”.

The three-storey terrace on Jubilee Road is sure to turn heads for bidders looking for a bargain.

But Roberts said: “It is not going to ever sell for nothing, so you have to be really careful.

“The danger with something like this is that it is going to cost you £100,000, for example, to renovate it.

“Then after all of that it is only worth £85,000 because you can buy another one next door for £80,000.

“It is not going to be a bargain if you can’t do it up for less than what it is when it is done up, it is really important that you don’t start this journey without being sure of the outcome.”

Newport-based Paul Fosh Auctions, which is selling the property, spoke of the nearby “sweeping valleys views” but also pointed out the home was “severely damaged in the fire”.

Sean Roper, of Paul Fosh, added: “This large property with huge potential could end up being sold at auction for a matter of just a few hundred pounds, depending on interest and a developer’s appetite for the challenge.”

The house has three rooms on the ground floor, four rooms on the first floor and a further three to four rooms on the lower ground floor.

According to Rightmove, the average property on Jubilee Road has been sold for £83,000 over the past year.

Bidding will begin on 1 October at noon and ends on 5 October.