House price rise sparks a huge boom in extensions
ROCKETING house prices have triggered an extension boom because owners cannot afford to trade up. Demand for builders, plumbers and electricians has soared as families desperate for extra space spend tens of thousands making their property larger instead.
That is cheaper for many than buying a larger home and means there is no stamp duty, estate agent’s fees or removal costs.
The number of home owners having major work carried out rose by more than a fifth in the first three months of the year and Royal Bank of Scotland has recorded a 26 per cent rise in customers looking to increase their mortgage to fund bigger kitchens, loft conversions and conservatories. Mortgage broker London & Country says requests to extend existing loans are up by 7 per cent.
Much of the demand is from families trapped by soaring house prices. Owners moving to a £600,000 home face a £24,000 stamp duty bill, plus removal costs and estate agent’s fees that could total £7,500.
‘Cost of a move can
be exorbitant’
Depending on where you live, a singlestorey extension of up to three metres can cost between £20,000 and £50,000, a loft conversion from £20,000 to £40,000 and conservatory from £5,000.
Rated People, a website which helps households find tradesmen, reports a seven-fold leap in major home improvements over the past year. And the number of requests for home extensions between January and March rose by more than a fifth compared with last year.
Marek Mossakowski, director at Rated People, said: ‘It’s been extraordinary. Demand has soared over the past few months, as ever-increasing house prices make a move very difficult for many. The cost of a move to get more living space can be exorbitant, so an extension which costs much less can be very good value.’
Part of the boom is also down to a change in planning laws, allowing most owners to extend their ground floor by up to six metres – about 20ft – without without having to submit a full planning application to the local council.