Homeowners choosing home improvements over moving due to Brexit

More and more UK homeowners are looking to revamp their current property instead of moving and finding a new home altogether.

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United Kingdom and Ireland
United Kingdom and Ireland
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Homeowners choosing home improvements over moving due to Brexit

More and more UK homeowners are looking to revamp their current property instead of moving and finding a new home altogether, influenced heavily by the uncertainty surrounding Brexit.

The decision for homeowners to remain in their properties is reflected in statistics that show a five-fold increase year-on-year since 2013. For example, in 2013, it was reported in a study carried out by Hiscox that just 3 percent of homeowners had chosen to improve their current home instead of moving. By 2018, this had jumped to over 15 per cent, and amongst the millennials surveyed, it was more than one in four.

A rise in home improvements

In another survey conducted by a large UK comparison website, a whopping 85% of homeowners stated that they had improved or updated their home with thin last five years. In terms of the reasons why, the majority stated it was to maintain the general appearance of their property or prevent it from falling into disrepair - but over a quarter stated that they had done so to add value to their home.

In terms of the most popular home improvements amongst homeowners in this study, interior decorating topped the list (46%) followed by the installation of a new bathroom (27%) and the replacement of flooring (26%).

Most homeowners will use their own savings to finance their home improvements, with others using second charge mortgages, finance through remortgages or bespoke home improvement loans, both secured or unsecured against their home.

Brexit causing consumers to hold back on buying or selling

It has been recently revealed that UK house prices have dropped considerably more than anticipated in July, with analysts primarily blaming Brexit. The Royal Institution of Chartered surveyors (RICS) house prices balances had dropped to -9% in July, whereas economists had predicted a reading of -1% for July.

The reason why house prices seem to be falling is due to consumers fears surrounding Brexit are increasing, with many buyers and sellers holding back as the likelihood of Britain leaving Europe without a deal seems ever more probable.

Brexit uncertainty leading to home improvements

Giving homes a makeover instead of moving is proving popular in part thanks to the uncertainty that stills surrounds the ultimate outcome regarding Brexit. For example, some fears that Brexit could end up negatively impact on the property markets in the next two years, affecting their ability to get a mortgage in the future. A number of analysts predict that Brexit could lead banks to start questioning their mortgage lending practices, which makes implementing minor improvements in the home a more appealing option than ever.

After all, increasing the value of your current home without having to navigate risks in potential housing market fluctuations seems a better alternative for many.




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