Insurer shows renovations increasing, moving decreasing
A new report from the insurer Hiscox has suggested that the number of people choosing to stay in their home and renovate rather than move has increased five-fold during the last five years.
The Hiscox Renovations and Extensions report indicates that 3% of homeowners decided to renovate their homes instead of moving, while in the last year that figure had increased to 15%. When looking at young people aged 18 to 34, the figure rose to 26%.
The study looked into the planning permission records of more than 400 local councils and showed a number of reasons for the large increase. 25% cited high property prices, 13% stated that stamp duty put them off moving, while others were concerned about the property market, interest rate rises and even Brexit.
The types of renovations that have been carried out included loft conversions with a rise of 114% in planning permission requests in the last 5 years and living room extensions with a 113% increase. The number of conservatories requested has dropped during the same period.
The report shows that homeowners can expect an increase in the value of their home of around 10% from these types of extensions and they would spend an average of around £16,000 per project - however, overspending is typical and many face problems with neighbours and time over-runs due to issues with contractors and other disputes.
Phil Thorn from Hiscox states that the choice to stay and renovate seems to be the new normal and is seen as more convenient, however, cost and time are often underestimated.
It is also pointed out that homeowners should tell their insurer if they are planning a renovation project.