The question is on everyone's minds now, especially with all the uncertainty surrounding interest and mortgage rates.
There are many things to consider, construction costs, estate agent fees, the love for your current property and the area you are situated in; the list goes on.
It would be best to consider the following factors when choosing between moving or improving your home.
Space Requirements
Circumstances have likely changed since you bought the property.
First-time buyers tend to purchase smaller properties to climb the ladder, with two-bedroom properties considered the ideal starter home. You may want to start a family or extra living space.
If you only require an extra bedroom or a larger kitchen, that could be facilitated through a loft conversion or a side extension.
Ultimately, an extension will be a smoother and more straightforward process than finding and purchasing a new home.
Budget
House extension costs are a significant investment, but so is moving home.
The average cost of an extension depends on your property's type, size, and location.
For a 20m basic extension, the UK price ranges from £36,000 to £52,000.
However, it is essential to remember that improving your home will significantly increase its value by 5% to 20%, depending on the extension type.
Moving home comes with various extra costs, including stamp duty, removal, and legal fees. These should all be factored into your decision-making.
Location
If your property is situated in an ideal location, it could be advantageous to improve your current home.
Consider the distance from loved ones and relatives, transport links, schools and workplaces and evaluate whether the area you are considering moving to is more beneficial.
Housing Market
The housing market is another crucial consideration, with house prices being negatively impacted by rising interest rates.
Another critical concern is increasing mortgage rates, which could affect your affordability to secure a house that meets your wants and needs.
Property experts predict a property price drop following various economic factors landing at one time. With interests rate set to remain high well into 2024, the market is unpredictable and moving now could leave you in negative equity should house prices come down.
Plan of action
Once you have considered all the above factors, create a list and compare the various options, which will help you make a well-informed decision.
If neither option is definitive, discuss both options with experts in each field.
Contact a local construction company to understand what extension options are available and at what cost, and contact a mortgage broker to understand your financial viability for purchasing a home.
Are you considering improving your home?
We are an award-winning construction company based in Hertfordshire (but we also operate in London).