The Parallel Forces Of The Economy and Falling House Prices
Since the housing bubble burst in 2007, property values have gradually fallen across the UK. And, with many experts predicting that prices are unlikely to recover in the short term, many homeowners are faced with the prospect that the value of their homes are going to remain subdued for the foreseeable future.
Many borrowers have looked at switching their home loans onto the best remortgage deals to save money. And, it is also possible to remortgage your home in order to raise the cash required to undertake improvements designed to increase its value.
One of the leading lenders in the UK has confirmed that house prices are down almost half a percent on last year’s figures, with the average house price now just over £156,000. Other lenders have also backed up the figures.
Until such as time as affordability in the UK improves and more people have the cash to buy a property at the average price of £161,000, prices are set to remain stagnant. With the Bank of England Base rate remaining at 0.5 per cent for over two years it has also been hard for buyers to save enough of a deposit to fund their property purchase.
What You Can do to Maximise the Value of Your Home: Convert the loft – Research from Halifax found that converting your loft is the number one home improvement that you can make. You are more likely to recoup the cost of the work through the value it adds to your home than any other refurbishment or redecoration project.
The same lender stated that the project that adds the most value to a property is concerting the attic into an additional bedroom, especially when you add in an en suite bathroom. This can potentially add thousands to the value and can make the property attractive to a whole new set of buyers.
Redecorating the house – It is possible to increase the selling price of your home by redecorating. Again, you can use a remortgage to finance the work which may include painting, tiling or fitting new carpets. Redecoration is often inexpensive but can add value to your home.
The garden is something that buyers look at in detail, especially for buyers who have children. By landscaping the garden and making it homely and pleasing to the eye, you can add value and make your property more sought after.
An extension, although a large project, is well worth the time, effort and money. You can add more bedrooms, make the kitchen or other rooms larger or even add a garage. All of the these things add huge amounts of value to your property.
If you’re worried about the value of your home then there are ways in which you can maximise your property’s value. And, the best remortgage deals can not only help save you money on your repayments but also raise the funds you need to undertake the work.
Timothy Frodsham writes for JustRemortgages.com one of the UK’s top sites for the latest remortgage rates and best remortgage deals.