We take a look at both moving house or making home improvements to help you make the right decision for your family.
With the property market back open after the pandemic forced its closure, and the Government cutting stamp duty on properties under £500k, we take a closer look at the pros and cons of moving vs improving your home.
Is it a good time to buy?
Depending on your circumstances, now may be a good time to buy; whether its a first-time purchase or an upgrade to your family home.
From 8 July 2020 to 31 March 2021, stamp duty rates have been suspended on properties costing up to £500,000, meaning buyers could save anywhere between 2 and 5%. With the average house price in the UK being £232,710, that equates to a saving of £4654.20, which could top up your deposit or be put towards your legal and admin fees.
Another positive for potential buyers is the drop in house prices. Since May, there has been a 1.4% decrease in value, with many housebuilders holding properties that they were unable to sell in previous months. With this in mind, there's more room for negotiation, and you're likely to score yourself a substantial discount. Combine this with the government's help to buy scheme, for first-time buyers; this may be a great opportunity to get your feet on the property ladder finally.
However, there is also a downside. As mortgage providers are becoming more reluctant to lend such high loan amounts due to the fall in house prices and the 'COVID crunch', buyers will have to put down more significant deposits. So those with only 5 or 10% saved and no access to other funds, may end up getting refused.
Should I make home improvements instead?
If moving house isn't a viable option or just isn't on your priority list at the moment, add value to your home with some well thought out home improvements.
According to Zoopla, the installation of bi-fold doors can generate a 56% profit while a bit of landscaping can bring in a 43% return.
However, for many homeowners who chose to take on home improvements, 40% of them said it was to create a cosier living space rather than to turn a profit, and 23% said they upgraded to improve energy efficiency.
If you do want to make improvements to your property, decide if you're going to add value to your property before selling or just improve your home to better suit your lifestyle.
What if I'm on a budget?
Being on a budget doesn't mean that you can't make improvements to your home. Whether you have £1,000 or £20,000, focus on the changes that will impact the way you feel about your house.
Below are our top suggestions on how you can make the most of your home improvement budget:
- £1,000 - Upgrade your interior lightening to make your home feel brighter and modern.
- £2,500 - Landscape your garden to create a space which will make you spend more time outdoors.
- £5,000 - Upgrade your current bathroom or install an en-suite.
- £10,000 - Get a new kitchen and update your appliances.
- £20,000 - Create an extra bedroom or office space for ever-growing families.
If you need some inspiration for your home improvement project, social media platforms such as Pinterest and Instagram are great places to start. With so many home and interior influencers ready to share the latest trends, you'll never be short of home improvement ideas.
Low-cost home improvement loan
For those larger renovations, we offer low cost home improvement loans starting from just 3.9% APR Representative between £5,000 and £25,000. Click here to find out more.
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