On October 20th the Government announced that average House prices in the UK had increased by 10.6% in the year to August 2021. Why have prices risen over the past 24 months and how can I add value to my property and make it more attractive to potential buyers?
In recent years, we have endured a devastating global credit crunch, the longest and deepest recession since the 1930s and then the impact of Covid. Yet, despite this financial and economic upheaval, UK house prices have bucked the trend, avoided a major collapse and now exceeded pre-crash levels.
The economics of Covid have made house prices, especially in areas away from city centres, even more expensive as the ability and feasibility of remote working or hybrid working becomes more common. Added to this, we also have relatively low-Interest rates which means buying rather than renting a property is far more attractive. The is also the temporary stamp duty holiday.
One final factor is the constraints on house building. The government estimates we need to build 250,000 new houses a year to keep pace with the growing demand.
In truth over the past 10 years, we have built annually close to 50% of this figure for a number of reasons:
- Lack of available land
- Environmental Costs and protecting Greenbelt land
- The “Not in my back yard” mentality – people are in favour as long as these new houses are not in their local area
- Lack of social housing
With all these factors in place we face the very simple economic truth of...
IF DEMAND INCREASES THEN PRICES WILL RISE .
Like most areas of the UK, property prices across the West Midlands are still booming. Unless you want to move, this could be a great opportunity to increase the value of your own property through a series of home improvements. One of the UK’s largest real estate agents, Savills, have predicted that the West Midlands and Birmingham in particular will continue to be one of the fastest growth regions over the next five years, forecasting price rises of up to 24%.
Bigger projects such as loft conversions, adding a conservatory or converting a garage will deliver the largest rewards. It is important to consider every aspect of home improvement in detail, especially with garage conversions. The ability to park close to your front door also adds value to your property – off street parking is a must have for many.
In addition, if you have had any work carried out such as an extension or conversion, make sure you have obtained the correct planning permission and building regulations and have the relevant documents.
We have a team of designers who are here to help, guide and advise you on your next home improvement projects. If you would like to pop into our Showroom, then please call us on 0121 451 3724 and we will ensure a member of the team is available to help.
Finesse Windows are a family-owned company celebrating our 40th year of trading. Earlier this year we were awarded the WHICH? Trusted Trader of the Year award in recognition of being the ‘best of the best’. .