House prices in the UK
Estate agents across the UK are predicting a lower than average rise in house prices across England and Wales in 2018. Savills and Rightmove are all saying that house prices will rise by an average of 1% and Countrywide’s report suggests a 1.5% rise.
At an average of 1%. house prices would rise by the lowest increment since 2011, when UK house prices rose by an average of just 0.8%.
Equity when moving home
For homeowners, the low rise in house prices may mean that the equity in your property is unlikely to rise by a significant amount during the next year, which isn’t great news for people who are looking to sell their home or rental property.
To back this up, according to the Office for National Statistics, for the year ending June 2017 the nominal total value of residential property transactions in England and Wales fell by 7.6%.
What types of homes should extend this year?
According to Rightmove, homes with two bedrooms or less which are typically bought by first time buyers will rise in value by 3% in 2018. Typical second homes, usually with between three and four bedrooms and either terraced or semi-detached, are predicted to rise by 2%.
It’s often the larger houses that are detached and so have plenty of space to build to the sides as well as upwards, which are the best opportunity areas for extensions. These properties are unlikely to increase in value between now and the end of the year if they’re left in the same condition as they are now. Rightmove predicts that the price of these houses (largely influenced by how many of them are in London), will fall by an average of 2%.
To us, this seems like a good opportunity to make your own luck by staying put and developing your property yourself. By doing this you can make your house into the type of home that you want without moving, or add value to it for when the housing market picks back up again.
Planning to upscale in 2018?
If you were planning to move to a house with more bedrooms, a bigger garden or just more space, 2018 could be the ideal year to build on your existing property to both raise its value in terms of money, but also in terms of its use to you.
Similarly, if you’re a landlord developing a property will have the same effect – not only are you still likely to make more money on it if you sell it after adding an extension, but you’ll almost always be able to charge more in rent for a bigger property with more space or bedrooms.
Advice about adding an extension to your home
If you’re thinking about staying put this year and wish to develop your house into the home of your dreams, then we’re definitely able to help. As specialists in home extensions, alterations and renovations, whatever you’re looking to achieve we’ll work with you to create the best results using careful planning and precise practice.
Speak to a member of our Loughborough based team today on 01509 734550.