Increasing numbers extending property
Using Hometrack’s property valuation system, research suggested that moving from a three-bedroom to a four-bedroom property was the highest financial leap, with an estimated cost of £64,032. In regions such as London the uplift is as high as £131,000.
Richard Donnell, director of research at Hometrack, suggested more people would look to add to their homes, rather than move and said: “We are likely to see a continued trend in households staying put and looking to add value to their homes. We estimate nearly half of all private housing stock is made up of three bed properties. Those with four or more beds immediately attract some scarcity value, which drives a higher average price.”
At the opposite end of the scale, the least expensive step up the property ladder, in proportion to the value of the home, was moving from a two-bedroom to a three-bedroom house, with the average increase in value at 19 per cent. In regions such as the South East and Wales, moving from a two-bedroom to three-bedroom property equated to an uplift of 15 per cent.
Harry Katz, principal at Norwest Consultants, agreed with the findings and said: “This is nothing new. It all starts out when you first buy. You stick to the rules of location, location, location. Then you look at the potential of the property. If these work out OK, then you do the arithmetic. It’s much cheaper to add a bedroom onto existing property than move, and it does away with the need for estate agents, stamp duty and removals.”