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There certainly becomes a point where it becomes financially easier to rebuild. Guess planning restrictions come into play. Also the fact there is no VAT on a new build compared to 20% on a renovation.
I mean it is certainly possible to bring even a much older house up to modern standards, if you throw enough money at it.
Just knock the whole thing down and start again
Can't help but feel the gap between contemporary standards and 1930s stuff is so great there's a point where you'd need to consider just demolishing and having at it properly.
Obviously not entirely viable if the place is terrace or semi, but the example was detached, so...