More people are investing in their current home instead of moving because of economic uncertainty and high property prices, a report has revealed.
Insurer Hiscox identified a five-fold increase in the number of homeowners who had renovated their existing home in the last five years.
Factors such as predicted interest rate rises, the cost of stamp duty and even Brexit were, the report revealed, prompting homeowners into ditching the property market and adapting their homes to suit their changing needs instead.
But the biggest concern was around prohibitively high house prices.
In 2013, Hiscox said, just 3% of those owning a home were improving instead of moving but in just five years this figure has risen to 15%.
Millennials were even more likely to renovate, with one in four of those in the 18 to 34 age bracket altering their property to fit in with their evolving lives.
Local council figures reinforced Hiscox’s findings, revealing a 29% rise in the number of planning permission requests from homeowners in the last ten years.
Requests for loft conversions had gone up the most, increasing by 114%.
Indeed, adding a bedroom to a home can be the most effective way of boosting the value. Estate agents said an extra bedroom could increase the value of a property by an average of 11.2% or £25,383.
Yet, Hiscox’s figures reveal bathroom and kitchen renovations were the most popular and garden projects were on the rise too.
Phil Thorn, head of direct home insurance at Hiscox UK and Ireland said: “People are looking at ways to adapt their existing homes to meet their changing needs, whether that’s a growing family or the beginnings of a new home business.
“Many view home renovations as an easier or more economical alternative to move, but our report highlights that these projects are often underestimated in both cost and scale.”
