top of page
  • Neil Harrison

So, what’s the outlook now for a home move? Extend and add value for later… its still the best  b...

Updated: May 31, 2023

House price growth remains in double digits with an ongoing shortage of homes for sale holding up current house prices. There are early signs that the market is beginning to cool though. But, it is worth noting buyer demand has indeed eased for the first time in eight months …and as a result mortgage activity has eased off.

All this, and more, was noted online right now, reference news reviews as to how the housing market was set to perform going on into the Summer. The overall picture seems to still be highlighting, a situation, as we see it , that adding value to a home with a renovation or extension at the moment might STILL look like a better bet and the less financially challenging course of action than opting for a ‘full on’ home move.

head-winds

Those well-informed people at the HomeOwners Alliance report that looking ahead, right now indicates that various, one might say headwinds, including the rising cost of living and rising mortgage rates, are expected to slow activity and ease off house price growth later this year.

challenging

Across the country latest news is that house prices are still up on average +1.0% in the past month, which amounts to +11.4% in the past year….a fairly challenging figure that is for sure! Say the HOA ….”Most areas of the UK have seen house prices up over the past month along with a double digit house price growth over the past year”.

London slowest

The biggest annual rises in house prices are in Scotland and Wales (+16.2%), and then comes us down here in the South West at +14.1%. The North West sits at +13.3%. London has experienced the slowest rate of annual house price growth (+7.9%). Average house prices are highest in London (£530K) and lowest in the North East (£155K).

regional price differences

Report the HOA “House price growth also varies by property type. Detached homes have seen the biggest rise (+14.9%) and flats/ maisonettes the smallest (+7.6%) according to Land Registry data. 

This may reflect regional price differences (more flats in London), as well as, demand – higher demand for bigger properties and fewer properties of this type available for sale over the past year”.

higher prices

Transactions have remained above 100K in every month of 2022, higher than pre-pandemic levels …..and very much higher than recent historic levels for this time of year.

grown slightly

The outlook then, is that there is a slight - and it is slight - amount of demand now as opposed to the past months of this current year. The stock of homes for sale has grown slightly, but it seems this is not enough to effect the general, more established ‘price revving’ situation we have all been living with for many months now.

will prices ease

The current average home price here in the South West - our local area - is now easing up at a price set level of £318,610 …….which offers a monthly change of almost 2 per cent. The question is …will these prices ease at all enough to make a home move less challenging and pressured in these cost of living crisis times? It seems for many …probably not!

add value

We, at Mint, still feel confident that adding value with an extension or renovation for now - and moving home at a later date - will very much still improve the potential financial pressures being suffered by many. For sure that ’full on’ home move needs to be most carefully considered. It IS - we say - important to still consider a pause in the face of the fact that there are, for sure, so many financial pressures still very much in play all round.

further reports

So what do the experts say… further reports here offer an idea from the HOA. Rightmove suggest ….People may be wondering why the housing market is seemingly running in the opposite direction to the wider economy at the moment. What the data is showing is that those who have the ability to do so are prioritising their home and moving, and the imbalance between supply and demand is supporting rising prices.

double digits

The Nationwide are saying…. House prices posted their tenth successive monthly increase to keep annual house price growth in double-digits. Despite growing ‘headwinds’ from the squeeze on household budgets, due to high inflation and a steady increase in borrowing costs, the housing market has retained a surprising amount of momentum.

under pressure

They also add …. Household finances are likely to remain under pressure with inflation set to reach double digits in the coming quarters…. if global energy prices remain high. Measures of consumer confidence have already fallen towards record lows.”

We at Mint Builders are, of course, here to help locally with all kinds of questions and ideas relating to all your new ‘added value’ home extensions or renovations and the now on your mind.

We are here to advise how you can best extend or renovate your home and so add value for a successful ‘later on’ home move in the future, to beat the current rising home prices and cost of living financial pressures.

Feel free to request our project planning and quotation visit to discuss refurbishment or extension of your home for more enjoyable ‘liveability’ and increased future sales value. Contact Mint Builders on 07734 211958 or email mintbuilders@hotmail.co.uk

2 views0 comments

Comments


bottom of page