Protect even the smallest home from the threat of falling prices
At first glance, everything is still rosy for the UK’s homeowners.
Asking prices for property in England and Wales hit a record high this month, with sellers marketing their homes for an average £313,000, according to property listings portal Rightmove.
What’s more, buyer demand is high, with more sales achieved so far this year than at any time since 2007. Yet, while the market is buoyant, there have also been signs that the sales prices actually being achieved are beginning to cool. Nationwide’s data showed the average selling price of a home fell 0.3 per cent last month.
There’s no shortage of experts calling that a temporary blip, but homeowners across the country are already trying to work out the best ways to ride out any possible dip without falling into negative equity. Suddenly, the property game is all about adding value.
Grand designs, small spaces
We all love home improvements; we’re a nation obsessed with property. We watch TV shows in which plucky couples build epic homes and where designers rip out every wall to create attractive, modern living spaces that command a serious premium.
Yet individually we often seem to have far less design scope. The average UK home has shrunk significantly over the last 100 years; research from the NAEA (the National Association of Estate Agents) shows that in the 1920s the average dwelling was 153m squared.
Almost 100 years later the average home is approximately half the size at 83m squared, meaning homes have shrunk by 46 per cent in the last century.
Some buyers may feel this limits their scope to add value to their homes. After all, if there is no wasted space in a new build or other modern property then there’s very little chance the owner can knock through a few walls or add an extension to increase their home’s worth.
However, with the right ambitions, experts insist it’s still possible to have big ideas in a tiny space.
Improving not moving
Research from Co-op Insurance shows that 91 per cent of homeowners believe their property has increased in worth since they bought it and by an average of £33,125.
And that’s not all down to house prices, which have been trending upwards despite the slight dip last month. In fact, growing numbers of homeowners are making their own mark on their properties and adding value through renovations and improvements.
Design expert Kevin McCloud, speaking to The Independent ahead of his appearance at the Grand Designs Live event in London later this month, says that displaying existing space to best effect is a key improvement and one that can be done with minimal outlay.
“There are design solutions and storage options that make our lives a lot easier and show a home to best advantage.
“It isn’t always about the size of what we have, it’s about the design and the way we work with it and the sense of space. I mean, even cleaning your windows introduces more light into a room and makes it feel lighter and brighter.
“When filming House of the Year I’ve seen how small spaces can be really cleverly designed. For example, fitted storage, like a large bench running the full length of a room or alcove. Actually, that’s what quite a lot of good design is. Once you start to declutter then the room feels bigger; a lot of what architects do is ensure a space isn’t cluttered.”
Ellie Rees, owner of the ethical estate agency Brickworks, suggests that homeowners can maximise the value of their property simply by dressing it for market.
“We are continually surprised by how dressing a property with our own stock of furniture, painting, putting new flooring down and so on, can at worst add value and at best sell a property that has been sitting there for an age,” she explains. “Very basic adding to the fabric of a building with new lighting fixtures and fittings, for example, is obvious but effective.”
Boosting value
The Co-op Insurance study found that 60 per cent of homeowners said their renovation work has led to an increase in value. Typically they had spent £18,224 and seen a £14,900 profit as a result of the work they carried out.
Modern home owners may find it hard to dream up developments that work within their homes. Yet there are a number of ways they can make physical adaptations that could still add value.
Neil Simpson, sales director at Bewley Homes, says: “Sometimes it is subject to planning but, if a development has [a garden], the owner of a new home can usually extend up to 70 cubic metres, enabling them to add value with the addition of an outside room or sun lounge.”
“Another way to add value to a smaller or new-build property would be to buy a smart garden room,” suggests Bruce King, director of estate agent Cheffins. “These are becoming more and more popular as they can provide an office, or even have plumbing to create an en-suite guest space.
“This can add around £30,000-£50,000 to the final value of the house. As working from home becomes more common, often buyers are looking for a workspace which is separate to the main house. The majority of decent examples will cost from around £5,000-£10,000 and the really best in class also include a woodburner and smart furnishings.”
http://www.independent.co.uk/money/home-value-improve-investment-protect-uk-housing-market-prices-economy-brexit-a7703191.html
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