It might have been imagined that the pandemic would suppress activity in the property market, but the reverse has happened thanks to the stimulus of the stamp duty holiday. However, while that has oiled the wheels of the market, it has also posed problems for those keen to upsize.
The mini-boom created by the tax break has led to a surge in prices, at least outside London, with rural areas proving most popular thanks to the extra space indoors and out that living in the countryside could provide to people subjected to restrictions on movement.
While that may have been good news for sellers, it has certainly not been the case for buyers hoping to upsize. Indeed, as the Cambridge News reported this week, the surge has held many back from being able to buy as, according to property website Zoopla, house prices are now 30 per cent higher than they were at the last market peak in 2007.
The article went on to highlight the most viable alternative: getting an extension. This provides another way of making a home bigger and with recent changes to planning law making it easier to get permission for such work, there is less red tape involved in getting the project started than there used to be.
Observing how many people in Cambridgeshire are taking this option, Elliot Ewing, director of Milton-based Tereyn Architects said: “We’ve seen a huge increase in home extensions and new build homes as the market conditions and planning laws allow for greater flexibility.”
What that extension could amount to will, of course, depend on the needs of each household. Some might need a new bedroom, a work space or a larger kitchen. But it could also be a great opportunity for people to make bespoke conservatories the centrepiece of their plans, adding a light and spacious element to their home.
By doing this, not only will there be more room, but a part of the home that offers a very different environment. In summer it will be a warm and pleasant place to be, while in winter it can maximise the amount of natural light, especially if it is facing south towards the midday sun.
While the stamp duty holiday has now ended, house prices are expected to remain elevated due to the limited supply of new homes coming on the market. This means that while there may be a small drop off in prices over the next few months as the market adjusts to the change, any fall will be limited.
Reflecting on this, Mr Ewing added: “We expect further growth in the home extension and self-build space as the market nears this transition period.”
The latest Land Registry figures, covering July, have indicated that transition has already begun, with a 3.7 per cent dip in prices across the country as a whole during the month. But prices were still eight per cent up year-on-year, showing how much further they would have to fall just to return to 2020 levels.
With a new conservatory, however, families will not only have a wonderful new space to enjoy, but this will also add value to their home, so that if and when they do opt to move they will not have to find so much extra cash to do so.