According to research just published by Savills, which has its local branch here in Bell Street, UK homeowners added £6.5billion
According to research just published by Savills, which has its local branch here in Bell Street, UK homeowners added £6.5billion to the value of their homes in the 12 months to March 2015 (£3.6billion in London or the South East), thanks to extending their properties.
Savills found that 220,000 owner-occupiers (equivalent to one in 74 homeowners) had extended and altered their home.
Based on the assumption that the average extension/alteration adds 10 per cent to the value of the average home, this would mean an average uplift of £30,000 per property.
Some properties increased considerably more — although Savills is keen to point out that there is no guarantee that a higher sale price would later be reached.
Katie Baldwin, an associate director of Savills in Henley, said: “The cost of taking the next step up the housing ladder, the changes made by the MMR (mortgage market review) and increased stamp duty for properties over £1million are likely catalysts to home improvements, impeding the rate and volume of transactions in the market, which in the home counties is on average 10 per cent down on the same period last year.”
However, Katie advises doing your research before taking the plunge with a new project, to make sure this will actually add enough value to make sure it’s worth all that hassle, disruption and cost.
She said: “In very general terms, in order for significant value to be added to a property, that property has to initially have the scope to add value.
“For example, significant value can be added to a property which requires total modernisation with new electrics, new plumbing, new kitchens and bathrooms — plus has the scope to extend in size.
“This differs from property which is in very good and liveable condition and where individuals are hoping the installation of a new kitchen, for example, will significantly add to the value of their home. In this scenario, it is less about adding value and more about increasing a property’s saleability.
“The data in the table on the right [Henley falls under South Oxfordshire, of course] could help you decide if it’s worth you altering/extending your home or whether moving could prove to be a better option.”
If you fancy yourself a bit of a Sarah Beeny, or even Kevin McCloud, there are a number of ways you can pinpoint a property. Here are a few local options you may wish to consider...
Property auctions, such as those regularly run by Romans, offer one fast and effective way of buying and selling property and land.
The entire sales process, from instruction to exchange of contracts, is achieved within as little as four to six weeks.
Sales are entirely open and transparent and many of the properties on offer are in need of a complete overhaul.
Romans’ next auction is on Wednesday, September 30, at the regular location of the Green Park Conference Centre, in Reading, where local properties, as well as those further afield will be among the lots.
Call Romans on 01344 753120 for information.
Bungalows are a good choice as they come with large plots and you can either put another floor on top or tear it down and start again (all subject to the usual consents, of course). This three-bedroom detached bungalow, in idyllic Skirmett, has beautiful rural views and is located in an Area of Outstanding Natural Beauty so it has potential with knobs on. For sale with Chancellors at £550,000. Call (01491) 571157 for more information.
NEXT WEEK: Standard Property talks to someone who bought an office property and turned it into a dream home for himself and his young family