Why Extensions Are Wise In An Uncertain Property Market
The UK property market has been through some startling ups and downs over the past year or so, with the pandemic initially curbing activity, before house prices and activity starting back on an upward trend.
Different regions have seen their own trends, of course; recent data from Nationwide showed that London actually had the weakest regional market in the first three months of the year as the capital’s population shrank for the first time since the 1980s, while the renewed stamp duty holiday in England announced in March led to a house price surge in April as activity jumped.
However, experts are uncertain about what some next across the UK. A panel of experts interviewed by iNews expressed concerns about what lay ahead. Among these was were Guy Harrington, the chief executive of residential lender Glenhawk, who suggested factors such as the ending of furlough could lead to a significant correction later this year.
All this could make the trajectory of prices very uncertain, which means householders might consider extending their existing homes instead of moving. This offers a range of advantages.
Firstly, it offers another way of effectively upsizing, without having to contend with all the uncertainties of the property market. It also means you don’t have the upheaval of moving home itself.
Finally, it can also add considerably to the value of the home, which means those who add an extension but then move in the future will have more money to play with and thus greater buyer options.
Last week the Bank of England predicted the UK economy will surge by 7.25 per cent this year, the fastest rate in 70 years. However, as the Bank’s governor Andrew Bailey noted, with the economy having shrunk by 9.9 per cent last year, this is not a boom but a case of catch-up. It would still mean the economy having no net growth over the whole period since 2019.
Amid such uncertainty, now may not be the best time to buy.
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