Homeowners struggle to move up

The figures from Hometrack show the one of the hardest leaps to make is from three bedrooms to four. The average house increase, in proportion to the value of the home, is 37 per cent. The average amount needed to move from three to four beds is £64,000. The most expensive leap is in London at £131,300 and the lowest in Wales at £39,100.

Richard Donnell, director of research at Hometrack, says: “We estimate that nearly half of all private housing stock is made up of three-bed properties. Properties with four or more beds immediately attract some scarcity value and this drives a higher average price.”

The least expensive step, in proportion to the value of the home, is moving from a two-bedroom to a three-bedroom house, with the average increase in value at 19 per cent. The average price for moving up is £27,100. Again, London is the most expensive place to increase property size, with homebuyers needing to find £66,300 to move from two to three beds. Homebuyers in Wales need only find £15,300 to move up.

Donnell says that we are likely to see a continued trend in households staying put and looking to add value to their homes.

“Adding an extra bedroom by way of loft conversion is unlikely to result in homeowners realising the full potential uplift in value,” warns Donnell. “This is because there are price ceilings in local markets. Adding a bedroom that is not in proportion, or makes the home feel smaller, may not add much value at all.”