Why and How Should We Be Improving Not Moving?

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Since the UK’s unprecedented vote to leave the European Union, there has been an increasing amount of economic uncertainty, which has been reflected in buying habits with buyers exhibiting prolonged signs of caution when ascertaining whether to invest in properties. There has been a continued decline in confidence with homeowners selling their properties due to rising inflation and stagnant wage growth; furthermore, mortgage rates are set to rise, which will restrict the borrowing ability for first time buyers and homeowners alike. 

However, the recent budget announcement that stamp duty land tax will be abolished for first time buyers, which will effectively exempt 80% of all first-time buyers from the duty, is an encouraging development and one that many individuals within the property sphere will be following closely.

In the capital, space is limited and comes at a premium, and with house prices slowly stagnating, adding value to a property in this location has ample potential to be highly beneficial and lucrative. There has been a 183% increase in planning applications for basement conversions and loft renovations in a bid to expand without compromising on outside space.

The addition of a basement has the potential to increase the value of a property by approximately £700 to £900 per square feet in the UK capital. Alternatively, if looking for a slightly more simplistic expansion, traditional extensions that increase space on the side or back of a house can add approximately 11% more value to a home.

Updating Existing Features

With new build property sales dropping by around 21% compared to this time last year, it is clear the negative stories in the media regarding the quality of new builds are encouraging buyers to turn to older properties. Another key factor is that there is currently a lack of newbuilds to buy, and with Brexit on the horizon, investors are cautious to invest and lend to high risk development opportunities. However, the new Government budget pledges to address the lack of new builds with plans to build 300,000 homes a year.

This is a fantastic venture as there are currently around 92% of councils who are not meeting the affordable housing needs in their areas, which shows how much new builds are needed across the country as a whole.

With these concerns relating to new builds, buying a home older than 20 years has become increasingly more attractive to seasoned home buyers. 

However, older properties do come with their own problems of ageing, and whilst period properties excel in character and history, they lack suitability for the UK’s weather and modern security systems.

Updating features like doors, windows and even roofs could add further value to a period property. For example, period properties commonly have single glazed Georgian or timber windows that are simple not efficient enough. Fortunately, nowadays we can recreate these traditional windows using modern concepts like double glazing, correct seals and security. In the long run, this will assist in saving money through being more energy efficient, and contribute to the overall aged interior and exterior aesthetics.

DIY Jobs

Adding value does not need to take form of spending an incredible amount to increase to the sell-ability of a property. According to property expert Phil Spencer, a fresh coat of paint on the exterior of the house could add an estimated £5000 to a property. Furthermore, a cleanup of the drive and windows will also help create positive first impressions of a property. It should be noted that if a rented property is being sold, both the interior and exterior may need more attention as it is likely to have had a greater amount of different tenants and general wear and tear may be more prevalent.

Even though we saw a growth in property value over the previous month, improving not moving has been increasing in popularity due to other factors like the Bank of England raising their base rate from 0.25% to 0.5% earlier this year. Furthermore, a survey carried out by comparethemarket.com showed Brexit and increasing house prices were main factors in homeowners deciding to improve their current property as opposed to moving.

In summary, although moving homes or buying a new property is an exciting concept, it can be extremely expensive. The uncertainty of the current housing market makes investing a riskier prospect resulting in renovating being a more attractive option. This way, homeowners can increase comfortability in their own home whilst being about to reap the monetary benefits when the housing marketing is more stable in the future.