You are here: Home - Mortgages - Buy To Let - News -

Relaxed planning laws could boost property values

0
Written by:
07/09/2012
The government's decision to loosen residential property planning laws could push up property values by up to a quarter, said Nationwide.

The Building Society is encouraging homeowners to take advantage of the government’s relaxed planning laws, which were announced yesterday.

For a limited time, property owners will be able to build much bigger extensions without planning permission than at present. The coalition said it wants to make it easier for tens of thousands of families and companies to expand their properties, giving a much-needed boost to the construction industry.

Nationwide has changed its mortgage proposition for further advances offering access to its full range of mortgage deals with a 0.10% discount for existing customers.

Further advance rates:

nwide-deals

 

 

Nationwide’s house price index special report looked at the value of improvements made to an average three-bedroom house.

It found that creating an extra bathroom could add 6% to the value of the property, while another double bedroom could push up the value by 12%. Building an extension or loft-conversion to create a double bedroom and en-suite bathroom could add 23% to the value, while increasing floor space by 10% could add 5% to the average value.

The price for building an extension can cost, on average, around £1,000 per m2 or £23,000 for a single storey and £76,000 for a double storey.

Robert Gardner, Nationwide’s Chief Economist, said: “With housing market demand still very weak, increasing numbers of homeowners may opt to improve rather than move. Our research assesses the factors that affect the value of homes, and the potential to add value.

“Having more useable space is generally thought to be consistent with better quality accommodation and people are prepared to pay for it. A 10% increase in floor space, other things equal, adds 5% to the price of a typical house, while adding space equivalent to the size of a double bedroom to a two bedroom house can add around 12% to its value.

“A second bathroom is also a favourite with homeowners and our research shows that creating an additional bathroom can add 6% to the value of the average house. Homeowners that add a loft conversion or extension incorporating a double bedroom and a bathroom can add about 23% to the value of an existing three bedroom, one bathroom house.”

[Graph supplied by Nationwide]

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2203813-fibre-optics-broadband
No confidence broadband promise

Consumer confidence in the government's promise to deliver the ‘fastest broadband in any major European country by 2015' is practically...

Close