As the Brexit confusion continues, huge uncertainty remains in the air when it comes to the home prices outlook for 2019. Now, there is even more talk than even last year for opting for a home extension or refurbishment, instead of moving house!
Stay put and extend seems to be the favoured course for many now. We at Mint have handled more extension building forward planning enquiries from Cheltenham and the Cotswolds than we have at this time over recent years.
We have again launched our no obligation ‘Extend Instead’ campaign to help people make the right decision to move or not to move. Many feel the answer is surely to stay put and build an extension, if they need more room, rather than cope with both the falling price of their current home and the added expense of moving to a new property.
There is much debate on the property price outlook in the light of the Brexit tangle ….here is a telling ‘take’ on what is indeed a delicately balanced developing scenario from the highly respected and influential onthemarket.com
Moving home or staying put is a dilemma which confronts most homeowners at some time in their lives, and their decision, to some extent, often depends on the state of the housing market. At a time when property prices continue to rise, it can make sense to move house and progress up the housing ladder that way.
When the market is a bit sticky – as it is at the moment in most parts of the country – extending a property can be a smart option. It is certainly one which more and more homeowners seem to be contemplating going forward. Apart from anything else, they know that they will save money on stamp duty, and the other costs, associated with moving house.
The other big bonus of extending, of course, is that it adds value to your property. A two-bedroom house that has been upgraded into a three-bedroom house is worth significantly more. How much value is added by the various extension options – from loft conversions to conservatories, from additional bedrooms to extra loos – varies from property to property.
Nationwide figures suggest that a loft conversion could increase the value of a property by 21 per cent, while adding an extra bedroom through an extension might add 11 per cent. Savills the Estate Agent estimates that a conservatory might add 10 per cent in value. But other building works only show marginal gains. Many buyers now expect a second bathroom as standard, for example, if you decide to install another one, you will be catching up rather than getting ahead of the game.
pay their way
There is also the cost of the building works to be taken into account. It is no good adding £20,000 to the value of your property if you have spent £25,000 in the process. Most extensions pay their way and many can yield a profit, though results vary from area to area.
A major new study which analysed data from the Land Registry, the Office for National Statistics and Energy Performance Certificate figures, identifies the parts of the country where extensions are most profitable. In central Bedfordshire, a typical extension will add £57,025 to the value of an average home costing £300,130 – or £5,459 more than it cost to build. In second place is Canterbury, where the notional ‘profit’ on an extension is £5,264. At the other end of scale are Swindon in Wiltshire and Thanet in Kent, where the net added value of an extension is just £66.
In central London, where property is at such a premium, the rules of the extension game are very different. Hamptons estimates that in Kensington and Chelsea, where the average cost of a house is nearly £2 million, extending will add value of £212,706 after £45,120 of construction costs, though one of the challenges can be getting planning permission granted.
One thing is certain: the option of extending rather than moving to a bigger property is one which homeowners need to take seriously, particularly at a time of static house prices. So, find a good builder , use your imagination, do your sums – and you may be pleasantly surprised by the results. You might have bought yourself some extra time in the property you love, too.
Note –The above content provided by OnTheMarket.com is for information purposes only. Independent and professional advice should be taken before buying, selling, letting or renting property, or buying financial products.
Mint can help with your extension and renovation.
Mint offers a full development and finishing service to add value to your home and we’ll help with any questions or concerns you have. Whatever your need request your ‘Extend Instead’ review or quotation to improve, refurbish or extend your home.
Contact Mint Builders on 01242 279739 or email firstname.lastname@example.org