The property market in Britain is experiencing a significant shift, as more and more homeowners are choosing to improve their existing homes rather than moving. Data from MyBuilder.com reveals that a third of homeowners are delaying their plans to move due to rising mortgage rates.

Instead, they are opting to extend, renovate, or generally improve their current homes. This trend is expected to create a surge in demand for various tradespeople, including plumbers, electricians, builders, and carpenters. In this article, we will explore the implications of this shift for potential investors in the property market.

Adding Value to Current Homes

The decision to improve existing homes instead of moving is driven by multiple factors. Rising mortgage rates have made it increasingly challenging for homeowners to afford new properties. As a result, they are opting to invest in their current homes, which can be a more cost-effective solution. Additionally, the current uncertainty in the property market, along with high buying and selling costs, is also contributing to this trend. Homeowners are finding it more practical and financially viable to add value to their existing properties.

The implications of this shift are twofold for potential investors. Firstly, there is an increased demand for tradespeople. Builders, electricians, plumbers, and carpenters are in high demand as homeowners embark on renovation and extension projects.

This surge in demand is likely to result in longer waiting times for these professionals. It is not uncommon nowadays to hear of waiting lists of a year or more for certain builders. MyBuilder.com’s data suggests that this situation is only set to worsen. Therefore, it is crucial for homeowners considering home improvements to plan well in advance and secure the services of their preferred tradespeople.

Invest in Doer-Uppers?

Secondly, this trend presents an opportunity for property investors to capitalize on the increasing demand for improved homes. Investing in properties that require renovation or modernization can be a profitable venture. By purchasing properties in need of improvement and subsequently enhancing their value, investors can benefit from the rising demand for improved homes.

This strategy allows investors to take advantage of the current market trend and potentially generate significant returns on their investment. However, it is essential for investors to carefully assess the potential costs and returns of such projects before committing their capital.

When examining the regional variations in this trend, Cardiff emerges at the top with 45% of homeowners expressing their willingness to improve their current homes. Manchester follows closely at 38%, while Bristol and Belfast stand at 34%. London and Birmingham record 35% and 31% respectively, whereas Edinburgh reports the lowest percentage at 26%. Leeds stands out as the city with the lowest proportion of homeowners, at 17%, expressing their intention to improve their existing homes.

Conclusion

The property market in Britain is experiencing a significant shift as homeowners prioritize improving their existing homes over moving. Rising mortgage rates and uncertain market conditions have contributed to this trend. As a result, there is a surge in demand for tradespeople, presenting potential investment opportunities.

Moreover, investors can capitalize on the growing demand for improved homes by purchasing properties in need of renovation or modernization. However, it is crucial for investors to carefully evaluate the costs and potential returns of such projects. With careful planning and strategic decision-making, investing in properties that require improvement can be a lucrative endeavor in today’s market.