As the average cost of a house in the UK has risen to a whopping £276,759, it may be very tempting to consider selling your home whilst the market has risen by approximately £24,500 in the last year alone! That being said, there are a number of personal, economic and sociological factors to consider if you are looking to sell your home in 2022, versus extending the living space in your home which could add even further value! Let’s evaluate them below.
Benefits of moving
House market prices are at an all time high
If you purchased a property with the intent of creating value, selling your home to put down a larger deposit with lower mortgage repayments could be a financially astute decision for you to make in the current market. There is no way of knowing how long market prices will continue to increase, so it may be worthwhile to take advantage of this while the buying market is so saturated.
A chance for a better lifestyle
If you’ve always wanted to move or relocate, then utilising the capital gains you have made by working and investing in your property could help you achieve this. Particularly if you wanted to relocate out of a city now that many careers have work from home and hybrid options, investing in a countryside location could bring you ample garden space as well as a roomier home.
No stressful building work
Whilst at Cobbydale Construction we adhere to quieter construction framework, and are able thanks to our project turnaround time to typically achieve this in 1-2 months, outside of our catchment areas of Keighley, Skipton, Bingley, Ilkley and Silsden you may not find the same with other construction companies. A definite benefit to buying a new home, is that you can evaluate whether it will need any structural work in the conveyance survey and choose accordingly. Perhaps, it can even help you negotiate a more amenable price!
Benefits of extending
If you are leaning more towards renovating or extending your home, you would not be alone! A recent study conducted by Lloyds TSB found that ⅖ homeowners would rather build an extension than move. Let’s see why.
It’s more money in your wallet
Why choose to move with all the accompanying financial fees that surround moving? With selling, you would have to engage with agent listing fees, agency commission (assuming you don’t want to sell the property yourself). Then there are the considerations of potential remortgaging, potentially paying stamp duty, removal costs, alternative accommodation if there is a quick sale, the list is long. In comparison, extensions tend to cost between £1,500-£2,500 per square metre as a national average.
| Moving House Service | Price |
| House Deposit | £30,000 on average (15%) |
| Property Survey Costs | £500 (RICS Home Survey Level 2) |
| Solicitor’s Fees for Selling a House | £1,046 |
| Solicitor’s Fees for Buying a House | £1,040 |
| Estate Agent Fees | 1-3% of value |
| Average Removal Company Cost | £1,181 |
Statistics provided by a study conducted by Lloyds TSB
You can stay in the home you love, and create additional space
For many homeowners, your home becomes a huge part of your lives. It is a place that holds countless memories, perhaps of your children as they grow up, perhaps they still live with you! There are many alternatives with extensions such as attic/loft conversions, house extensions, garage conversions, building conservatories for extra living space that are a lot more cost effective than moving.
Create longer term value
As the housing market prices are expected to continue rise throughout 2022, by 3% in areas outside of London, and 2% in the capital you can add additional value whilst continuing to gain by not selling. If you did decide to sell further down the line, you would have more property to sell, as well as roomier living space in the meantime.
Drawbacks to selling
Love for your home
A study conducted of people who would rather extend than move found that understandably, 50% were reluctant to move due to love of their current home. When moving it is not just the home you are leaving, but your friends, neighbours and family in the local area for somewhere unless you have visited substantially, you do not know what it is like to live there.
Not adapting well to the new property
Especially if you are leaving a particular sized community for another. You always run the risk when moving that you will not initially, or at all, adapt well to your new circumstances. 25% of people in a study cited the reason for not moving was that their locality was better than those of properties they had viewed. Obviously this is dependent on your personal ability to handle stress, but why subject yourself to that for you, your loved ones and pets when you have the option to renovate or extend your living space?
Hassle
We’ve already covered the statistics of costs involved with selling and purchasing property. However, there’s also the hassle of having to pack everything, ensuring you don’t damage the property whilst removing furniture and/or appliances, and then unloading and installing your new set-up for your new home.
Cost of a new home
49% of the same study that answered why they did not want to move, answered that the rising cost of house prices was the main factor. Whilst house prices are rising considerably, finding a property that you can buy outright or with more favourable mortgage terms can be difficult.
Drawbacks to extending
Planning permission
Planning permission is often cited as a main consideration as to why people are reluctant to renovate or make home improvements. Conflict with neighbours, and engagement with local authorities in obtaining planning permission being two of the most negatively viewed factors. Recent changes under permitted development allow for a kitchen extension to the rear of the house, porch, or conservatories often without planning permission in many cases. However, it is advisable to get in touch with your local council to ensure you have the right to extend or not bypass your neighbours’ property boundaries.
| Extension Service | Price |
| Extension Per Square Metre | £1,500 – £2,000 |
| Planning Permission | £190 – £206 |
| Property Survey Fees | Starting at £400 |
| Architect Fees | (Between 3-10% of extension cost) Minimum of £2,700 to £4,000 |
| Building Regulation Checks | Usually 10% of extension cost
|
Statistics provided by a study conducted by Lloyds TSB
Overestimated value
Whilst most experts are inclined to agree that adding a home extension will increase the value of your property, the housing market is volatile and subject to change. Remortgaging your house in order to accommodate this may not be worth the cost of adding such an extension.
Rogue builders
Sadly, like many industries there are construction companies who do not adhere to accredited frameworks such as the Federation of Master Builders or Association of Master Tradesmen as we do. You can check out our guide on 11 questions to ask a construction company when hiring here. The safest bet is if you are in our local areas of Silsden, Skipton, Bingley, Ilkley and Keighley is to approach us for a free consultation on what type of extension would add the most benefit to your home. We can also undergo construction projects according to your specifications as opposed to set building projects.
Did this guide help you? Do you think we covered everything? Let us know in the comments below or check out our home improvement projects to see how we can help you add to your home.