To Sell or Not to Sell?

More homeowners are choosing to upgrade rather than move on

Homeowners are choosing to renovate their properties rather than sell up and move on, according to a recent report in the Financial Times.

With increasingly gloomy news on mortgage approvals and the general slowdown in the housing market, householders are using what would have been their deposit money for a new home, to upgrade what they have already got.

Paul Maguire of Abode Renovations on Shepherd’s Bush Green says he has noticed this growing trend locally.

“A lot of people renovate rather than move because it is cheaper for them. I notice now that people have been in their homes for five or more years, as opposed to having recently bought and just wanting to do the place up to sell on,” he said.

According to the Financial Times, the plethora of property programmes on television has been a major factor in motivating people to upgrade: "Householders entranced by television shows such as Grand Designs and Property Ladder have rushed to emulate the new breed of ‘alpha’ remodellers,” the paper says.

But Maguire says many people seem to renovate their properties these days because they feel less inclined to move: “People are happy with the house they have, they just want a change,” he says.

In the local conservation areas, such as Starch Green and Ravenscourt Park, Maguire says major home alterations, such as adding a loft or conservatory, are usually approved, though not always immediately. “The council are strict but helpful,” he says. “You’re allowed to do renovations but you have to be sympathetic to the surrounding area.”

The Financial Times report says some City analysts are predicting the consumer slowdown may yet trickle down to the home renovations market.

But Maguire says he is not worried. “I think that people still do have the funds available to upgrade their homes. I think London is a completely different market to the rest of the country. People are still earning enough.”

He says homeowners are now choosing to make higher quality alterations to their properties: “I notice a lot more people are having solid wood floors fitted,” he says. This chimes with the FT report which says people are ploughing their earnings into their homes: “By boosting the value of their biggest asset, they have armoured themselves against the negative equity horrors of 15 years ago,” the paper says.

For those who still do want to sell, it is clear what buyers are looking for: “Kitchens and bathrooms are always a good thing to do because of the cost. It adds quite a bit of value to your property,” says Maguire.

23 May 2008