Why it could be better to renovate rather than move home in the current economic climate

Cost of Living

With the cost-of-living skyrocketing and all our bills rising against a backdrop of high inflation and increasing interest rates, the crisis is contributing to a significant fall in the number of people moving home. 

The last few months have brought about a lot of economic uncertainty. The Bank of England base rate has risen sharply, pushing up mortgage rates. This has shaken confidence in the housing market and so naturally, people are questioning if now is the best time to buy or sell.  

 With all this uncertainty in the property market, rather than moving home, you may have decided it is better to stay where you are and renovate or expand your current property to suit your needs. This can be a fantastic way to help add value to your home and may also mean it is more saleable in the future, when the market settles. 

 Here are some reasons why we believe it may be a better option to renovate your home rather than move:  

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Cost-effectiveness:

Typically, it is more cost-effective to remodel your home in a way that works for you than it is to move to a new house.

High ROI projects:

If you decide to renovate your home during the cost-of-living crisis, it’s important to focus on projects that have a high return on investment (ROI). This means choosing projects that will add value to your home and potentially increase its resale value.

Less competition for homes:

During economic uncertainty, there may be less competition for homes on the market. This can make it more difficult to sell your home and find a new one. Renovating your current home can be a good alternative to moving, especially if you’re happy with your current location.

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Personalisation:

Renovating your home allows you to personalise it to your specific needs and preferences. This can be especially important during a downturn when moving to a new home may not be financially feasible. Savvy homeowners are more interested on the concept of future proofing their home, be it seeking space for adult children to remain at home or moving in elderly family members. Ensuring that the home is sufficiently comfortable and accessible for all can be crucial.

Sustainability:

Choosing to upgrade your insulation levels and install LED bulbs for example may not only cut your bills but could also possibly improve your EPC rating which in turn should make your house more desirable to a potential purchaser. And the upside is, the more energy efficient your home, the more money you will save in the long run even if you decide not to sell.

Looking to move to a new area?

If you are looking to move to a new area and create your dream home while keeping costs down, buying a house to renovate may be a good option. By purchasing a lower-priced property and reserving some of your budget for renovations, you can save money on stamp duty and create a home that meets your specific requirements.

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Ultimately, the decision to move or extend your home should be based on what is best for you and your family. Take the time to carefully consider your options and consult with professionals such as estate agents and architects to help you make an informed decision. 

 If you do decide to renovate your home during an economic slump of any kind, it’s important to carefully consider your financial situation and long-term goals before embarking on a renovation project. The key is to focus on projects that have a high return on investment, are low cost but high impact or help your home function better.  Experts are predicting that renovations focused on increasing comfort, sustainability and functionality in the home will be key this year and beyond. 

Get in touch to discuss your renovation requirements Let’s chat

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