Property Investment Trends
Residential real property values in the UK are on the mend. That’s the good news for an industry and sector of the economy that has been fairly volatile in recent years. The bad news is that homeowners who survived the 2008 housing crunch are disenchanted with selling and relocating. The current trend for existing homeowners is to hold on to what they have and improve their property.
Some homeowners are still underwater and owe more than the value of their property. Others suffer from a general lack of confidence in real property and rather than take losses in the immediate future are finding ways to make their home more to their liking.
Current real property trends were recently published by ratedpeople.com who surveyed 2,000 homeowners to evaluate their real estate interests and activity. The results could be interpreted as surprising by traditional standards but perhaps should be expected after the housing market volatility of 2008.
Perhaps the biggest surprise of the ratedperople.com survey was the shift from the old real estate guiding principle of location, location, location as the top priority. Today, the biggest concern of existing homeowners and their families is living space.
The second most important concern is room size. Most UK homeowners are struggling with space and with room size and consider these factors more important than location. The cost of homes in what are generally considered the “best locations” may be influencing the idea of relocating. Also, with construction costs and interest rates favouring the consumer, the idea of adding more space and bigger rooms makes financial sense.
Jonnie Irwin of ratedpeople.com explains, “Faced with a difficult housing market, homeowners should be looking at what they can be doing to improve their current home – and where they can add value – rather than moving on.”
How to Add Space and Increase Home Valuation
The easiest way to add space and add to the home’s valuation is to add an extension or conservatory. Existing homeowners report high satisfaction levels with these changes to their homes.
As homeowners migrate to the back of the house which may or may not overlook a garden, the thought of an extension or conservatory can add significantly more value to the home than the addition would cost. Adding a cost-effective extension with energy efficient, insulated glass and glazed windows is the most appealing option.
Ratedpeople.com found that, “A well-planned extension nearly always adds value. But, look at house prices in your local area to gauge how much value another bedroom will add to your property – be careful not to overdevelop.”
Another reason that glazed extensions are popular is the fact that more and more UK homeowners are tending to work at home. This creates the need for an office that was originally unplanned. The office is usually situated in the front of the house so the family naturally migrates to the kitchen in the back of the home.
Adding an extension with access to the kitchen can dramatically increase the living area and family interaction. We may not sit down to dinner as much as previous generations but we like to interact while food is being prepared or enjoy a good movie on a big screen TV.
Many existing homeowners are finding ways to add another bedroom alongside the residence. Even then, glazed extensions provide the opportunity for more space and greater enjoyment of the garden patio. Side extensions do not usually add as many square feet to the residence but are an easy way to get an extra room.
Ratedpeople.com also found that UK homeowners were still very keen on their gardens. If you can find a way to enjoy your outside environment while inside the house, all the better. Your property value will climb and you will enjoy the merits of your hard work.
One clear recommendation was that you should plan your extension so as to have minimal effect upon your garden. You can relocate your favourite plants if necessary but preserving what you have is a popular theme.
Entertaining at home is returning to our social environment. Add good space to entertain, invite friends over to see and enjoy your new extension and gardens.