The old adage of “don’t move, improve” is no longer sage advice given rising costs and Brexit, a senior property figure claims.
Paul Hilton, chief executive of Scottish property portal Paul Hilton, has claimed it is no longer more cost-effective to renovate compared with moving home.
He of course has a vested interest in people moving but explaining his claims, Hilton said: “With the ongoing impact of rising inflation rates and Brexit on the home improvements industry, this no longer seems to be such sage advice.
“The costs of having work done have escalated wildly over the past five years – Which? estimates that the cost of installing a new kitchen alone has soared 22% since 2019, while it’s been well-documented that the costs of renovations like extensions or loft conversions have accelerated beyond the point of affordability for many homeowners, now costing tens of thousands of pounds more than they would have a few years ago.”
Hilton said renovation projects were all the rage a few years ago, as they were seen as one of the few ways that buyers could secure a larger property or a home in a more desirable location – but with the current costs involved in a large-scale refurbishment, he said buying patterns are switching towards fully-finished properties that need next to nothing done to them.
He added: “Anecdotally, we hear many such stories to support this – homeowners who bought doer-uppers in their ideal locations, planning to upgrade the property over time, who have found that the costs involved would be so high, that it makes more financial sense to move to a more finished property, even if that means compromising on location.
“Our monthly list of the ten most-viewed properties on espc.com also reflects this, with overwhelming interest in turnkey homes compared to those that need more substantial work doing to them. It appears that buyers would rather plunge their hard-earned savings into the property itself (perhaps taking a hit on location in the process) rather than commit to the ever-increasing costs associated with renovations.”
He said there are also stronger levels of interest in properties that offer long-term potential, adding: “If we’re all going to need to spend thousands of pounds on upgrading our homes’ heating systems, surely it makes more sense to buy a property that you can stay put in for a long time, rather than one that you may need to move on from in three-five years? Buyers may even be more tempted than before to choose a newer property which comes fully-fitted with all the eco-friendly bells and whistles.”
Hilton added that it’s a good time to move house.
He explained: “There is far more choice on the market than we’ve seen in recent years, giving buyers plenty of options and a far less competitive environment for making offers.”
Source:- https://www.estateagenttoday.co.uk/breaking-news/2024/11/property-boss-why-its-no-longer-cheaper-to-improve-rather-than-move/