UK Homeowners Are Becoming Improvers Not Movers

The debate between moving to a new home or improving the one you have has always been a big one for homeowners. When you want more space, different features or other benefits your home doesn’t offer, many people would opt to move. But despite low-cost borrowing and steady or falling house prices, more people than ever are an option to improve rather than move.

Changing trends

According to data from the HM Land Registry, house prices in England and Wales increased by less than 1% on average last year. The average property is now worth just over £230,000 but the figures also show that the number of people applying to move house is dropping.

Even the first time buyer category has seen a drop. Figures in June showed that they were down 1.5% on the same month of the previous year and things have continued in a similar vein since them. Home mover mortgages were down 3.6% while pound for pound remortgages were down by nearly one quarter.

Remodel rather than remortgage

But what do all these figures mean? According to experts, even accounting for a seasonal lull in the summer, all types of house buyer mortgages are down, including buy to let mortgages for landlords.

While the stable house price situation may seem to encourage people to make a move, the reality is that they aren’t. One of the factors is the cost involved with moving – including stamp duty, estate agent and conveyance fees and moving costs, it can cost around £11,000 to move to a new house.

Improve your home

What the stats do show is that people are instead borrowing money to do work on their existing properties. Lending for home improvements has increased by 8% this year on last year and studies show one in five people would now rather improve than move.

The changes to Permitted Development also means there is more you can do to your home without the need for planning permission. The system was introduced in Wales in 2014 and means there is a range of additions and alterations that can be done to your home without planning permission, although there are conditions and exceptions. In all cases, building regulations still apply.

What are the most profitable improvements?

In terms of the improvements that people are making to their homes, they are varied.

Many people still look at the work done from the view of later selling their home so the balance between spending money on what you want and what will get a return is part of the decision.

But what are the top improvements that are people are making to their homes?

Converting the loft or garage

One of the main reasons for moving house is to gain more space but often, we have ways to make our homes bigger without moving. That’s why converting a loft or garage is one of the most popular options for homeowners to spend their money on. Both can add 10-15% to the value of the home but more importantly, can be used for anything from an extra bedroom to a home office.

Both also fall under Permitted Development in the majority of cases. While there are still regulations about things like insulation, fire escape facilities and access, these are a cost effective way to make your home larger.

Upgrading the boiler and heating

Opting for a new heating system and upgrading to new boilers are improvements that can save you money as well as making the house more pleasant to live in. The older a boiler gets, the less efficient it is, and this costs you money in wasted gas and electricity.

Upgrading to a new top rated energy efficient boiler can save on gas and electricity bills. Having a new and improved boiler and heating system also makes the home more comfortable. There’s nothing worse than constantly being cold in your home and a new system can solve this problem.

Changing the layout of rooms

The continued passion for open plan living isn’t just for people who are building a new home – there’s lots of ways to incorporate it into an existing property. Another top improvement is to look at changing the layout of the rooms to make them more multi- purpose and allow light and heat to freely flow through them.

People are also clever about making the layout of rooms flexible. An open  plan kitchen and living room can quickly be turned into two, cosy rooms with the use of room dividers. Then opened up again the next morning to let the sunshine flow through.

Landscaping the garden

While Wales is still a country of keen gardeners, not everyone wants to spend the time needed to keep a cottage garden. In fact, people are more than ever using their gardens as outdoor rooms and that means landscaping them is a popular way to spend money on the house.

Adding patios to the rear, decking areas or even a driveway at the front are all popular options that redefine the garden space for things that the homeowner prefers. Again, many of these jobs can be done under Permitted Development but always check with your local authority.

Spending on the home

Spending on the home to improve rather than move is a trend that shows no sign of slowing. With a third of homeowners remortgaging to do work on their homes, the trend doesn’t look likely to change direction any time soon either.