Investors and builders are saying that Brexit might increase the rates of important home improvements, such as Loft conversions or Extensions, because it is hard for them to find skilled workers who can manage the tasks professionally. In addition, much of this sentiment is fuelled by the uncertainty surrounding the future of the economy in the post-Brexit period.
New research has shown that Brexit might have a negative impact on the construction industry and the property markets with banks questioning their mortgage lending and suppliers increasing their margins as a buffer by as much as 3 to 4%.
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With such considerations making the decision to do a loft conversion or extension is getting harder for the homeowners. Why are minor improvements still the best option in property investment… here’s what you need to know
Investing in the house is best option
Within the next 5 years increase growth in the property market has still been predicted and worse case projections still show London to be stable market. There are various investors who have made it clear that people who have converted their lofts and have extra space will be able to generate a better profit in case they plan to sell their house. Requiring little capital, planning and being cost effective experts predict that loft conversions and extensions will remain a key investment area.
If the housing market slows over the next 24 months the banking industry will suffer as the economy is affected and in turn will also affect the economy. In such cases the banks will look for safer investments to replace this lost income, so the costs of mortgaging or releasing equity from your home, especially for home improvements that add value are set to stabilise or even fall to encourage more applications. This could make loft conversions and extensions a better investment that a new property within the next 5 years.
Always work with a trustworthy company
One of the most important things to consider if you are planning to have loft conversion is to always work with trustworthy companies. Yes, of course we will say that, but it’s true. You need to ensure the selection of the builder is right for you, that they specialise in that field and large enough to absorb the changing costs in market over the next 24 months.
Normally you are quoted a price months before the works begin, this period is normally filled with services and home extension designs process as well as planning (. During that time period and even throughout the build the cost of labour and materials may sway, if a small company cannot absorb this cost, it could have a devastating impact on you. Likewise, a large company that experiences a 5% impact on costs could fold within months unless they have a very flexible business model.
In summary, Brexit, no Brexit, deal or no deal… if you already own your home then you still have a great opportunity to expand your home, very cheaply and in the process avoid any volatility in the housing market whilst increasing the value of your home above the cost of the build. Not to mention avoid the increase cost of moving and mortgage rates.
If you’re considering these projects, we at Clapham construction service recommend getting a reputable company in to support you through the process.