New research reveals that many UK homeowners are very optimistic about the increasing value of their homes.
Homeowners are always keen to know the value of their home, particularly if they are thinking of selling. If would-be sellers perceive that their home has increased substantially in value, they may be more likely to put it on the market.
And new research from Co-op Insurance has revealed that the majority of UK homeowners do believe their home has gone up in value since purchasing it, to the tune of an average of £33,125.
It is increasingly common nowadays for people to see property as an investment, as a reliable way of making money. The findings, which came from a survey of 1,000 UK homeowners, found that 31% purchased their property with a firm eye on how much money they could generate from their investment. Banking on house prices increasing year on year was the main way (62%) in which homeowners would hope to achieve this.
Meanwhile, for almost a third of people taking part (32%) location was the key deciding factor, with buyers keen to purchase homes in already sought-after areas, thus increasing the chances of the home going up in value significantly. Up and coming locations are also a popular choice, as these areas tend to witness very fast house price rises over a short period of time. The buzz surrounding these places is reflected in increased demand and fierce competition for homes.
Some 32% of people carried out thorough research before picking an area classed as ‘up and coming’. These are often previously neglected or ignored locations that are now benefitting from a boom in popularity, thanks to better transport links, new homes, regeneration, gentrification, national fame, infrastructure projects or a combination of these factors.
Elsewhere, 29% purchased a home that was in clear need of a complete revamp. Of course, homes that are freshly renovated are highly likely to go up in price just by virtue of being in better condition than when the property was bought. Property developers, landlords and first-time buyers may be most attracted to a home that is in need of renovation. The initial outlay is likely to be much lower, but renovation costs must then be factored in. However, the home is likely to go up considerably in value once it is up to standard, making the time, money and effort involved in renovating fully worthwhile.
In most cases, full-scale renovations won’t be needed, but people are still keen to stamp a mark on their property and regularly tinker with their surroundings. Some 76% of those surveyed said they had made changes to their property since moving in, with rearranging rooms from one thing to another a common occurrence.
Of those who have carried out improvement or renovation works, 60% believe this has added value to their home. Homeowners have invested an average of £18,224 on renovations and decorative tasks. With the value of a home rising by £33,125, homeowners are generating, on average, a £14,900 profit as a result of their outlay.
Londoners have seen the biggest average increase in profits as a result of renovation and decorative works, with a massive 94% of respondents who reside in the capital believing their home had gone up in value by more than £20,000.
The research also revealed that the kitchen is king for would-be buyers. If you are a seller looking to renovate one room in your home to impress prospective buyers, you should look no further than the kitchen. For 56% of those surveyed, the kitchen is the room that really sells a home. We’ve outlined before why the kitchen is now arguably the most important room in a house and why sellers should pay extra special attention to it.
As we’ve said many times before, though, getting your whole home up to scratch – ensuring it’s clean, tidy, welcoming, well-lit and attractive – will massively improve your chances of selling quickly and for the best possible price.
In the current climate, with demand continuing to outstrip supply and market conditions in favour of sellers, homeowners have every right to feel confident about steady house price growth and a continuing rise in property values.