🏡 Move, Don’t Improve! Moving House vs. Home Renovations 🛠️
🏡 🛠️ The idea of expanding your home through renovations has traditionally been a popular solution – ‘improve don’t move’ was the popular saying 🛠️. However, in the post-pandemic/Brexit world, moving house might be a more economical and less stressful option compared to altering your existing property. Here we look at why.
🛠️ The idea of expanding your home through renovations has traditionally been a popular solution – ‘improve don’t move’ was the popular saying 🛠️. However, in the post-pandemic/Brexit world, moving house might be a more economical and less stressful option compared to altering your existing property and here’s why:
🚀 Rising Renovation Costs💸
One of the most significant shifts since the pandemic has been the dramatic increase in the cost of building materials. 📈 A recent article in The Sunday Times confirmed that building materials have risen by 38% since February 2020, and in some areas, there is a 5-year waiting list for good builders. 🛠️ Brexit exacerbated the situation, resulting in a shortage of skilled labour in the construction industry. This scarcity of labour means higher wages for those who remain, further driving up the costs of renovations, leaving builders to ‘name their price!’ 🏗️ House value increases have not kept pace with the increase in building costs. 📉
😓 The Stress Factor*😓
Renovating a home is not just expensive; it’s also incredibly stressful. Coordinating with contractors, managing timelines, and in some cases living in a construction site can take a toll on your mental well-being. 🏡 The noise, dust, and constant presence of workers can disrupt your daily life, making it hard to relax in your own home. Doing this with a young family causes additional complexity and stress. 👶
On the other hand, moving to a new house can be a fresh start without the associated stress of renovations. 🌟 While moving itself can be challenging, it is a one-time event. You can plan your move, execute it, and then settle into your new home without the prolonged inconvenience of ongoing construction work. 🏡 A good estate agent will help here! 🏡
💰 Financial Considerations💰
When weighing up the financial implications, moving house often makes more sense in the current market. The costs associated with moving—such as estate agent fees, stamp duty, and moving services—are generally more predictable and can be budgeted for more easily than the variable costs of a renovation project. 📊 Moreover, with the property market experiencing high demand in many areas, selling your current home might provide you with enough capital to move to a larger or better-suited property. 📈
Another financial aspect to consider is the potential increase in property value. While renovations can add value to your home, there’s always a risk of overcapitalisation—spending more on improvements than the increase in home value. Moving to a new home that already meets your needs can be a safer investment. 🏡 It’s not just the cost of the works! Would you need to vacate the property? Could you afford to pay rent on an additional home as well as a mortgage, along with the associated cost and inconvenience of moving? For many, the answer to this is NO – especially given the increase in rental prices over the past 2 years! 📈 It is also a case of finding the money to carry out the works themselves. You may be able to buy a new home but do you have the cash to do the works? 💸
📊 Conclusion 📊
Stats have shown that moving is becoming preferable to improving as figures in The Sunday Times confirmed the number of planning consents granted to householders in England in 2023 was 160,000, an 18% fall compared to 2022 and a 30% fall when compared to the pre-pandemic peak in 2021. 📉 The higher the property values in an area, the more likely improving will be cost-effective. If you live in the North of the country, you are more likely to move, not improve. 📦 While the allure of customizing your current home through renovations is strong, the reality of increased material costs and labour shortages makes this option less appealing. Moving house, on the other hand, offers a fresh start with less stress, more predictable costs, and the opportunity to choose a home that better fits your needs. 🏡
