Extending your property

Few people saw the credit crunch coming, except perhaps for a number of high profile investment bankers and insurers. Indeed, the subprime housing market, which essentially refers to the irresponsible or below-standard provision of mortgages to those who are at risk of defaulting on repayments, has shaken the foundations of economies across the world. In fact, the less fearsomely coined credit crunch is now a full-blown recession, which is wreaking havoc on the UK`s economic standing and is expected to continue to do so for some time to come. For this reason, many homeowners and property developers have elected no to sell their properties until the market recovers.

Actually, staying put is not an option for most homeowners - it is a financial necessity. Indeed, the recession is continuing to keep the housing market on its knees, which means that the inflated prices of four or five years ago have been reduced considerably. This can mean that moving home is financially unviable for many homeowners, who simply cannot afford to sell up at today`s prices. However, the depressed housing market does offer a silver lining for those required to stay put - now is an excellent time to develop an existing property.

In fact, it can also be a more cost-effective solution to upgrade the home through building work than it is to sell up and move on. Although house prices are down at all levels, which means that there ought to be equity in balance for both buyers and sellers, the fact remains that selling a house today will invariably lose the owner money. Furthermore, buying resources, materials and hiring labour can often be considerably cheaper during a recession, especially if rival builders are competing for fewer jobs. Moreover, the act of extending a property will most likely add significant value to it for when it is eventually sold. Should this time be at a point in the future when the housing market has fully recovered, that extension could actually result in a healthy profit for the owner or developer.

Therefore, extending a property today can prove to be a sensible financial investment in the future. Additionally, homeowners and developers are not tied to any one particular type of extension, assuming that Building Regulations are conformed to and planning permission is sought where necessary. Indeed, the process of improving the home permanently can include various extensions in addition to loft and garage conversions. Erecting a conservatory could even be classed as a financially viable extension providing that it comprises a permanent structure.

Nevertheless, the most common type of property development that homeowners are undertaking at the moment is the extension. Usually affixing a new living area to the side of an existing building, extensions are also ideal for improving the standard of living in the home and are not, therefore, merely financial investments. In fact, because many homeowners who want to move home simply cannot afford to do so, building an extension is a sensible move in order to breathe new life into the existing property. Indeed, an extension may make the difference between a homeowner wanting to leave or stay in their property, especially if it creates a required space such as an office or additional bedroom.

Finally, it is important to remember that extension work must comply with the relevant Building Regulations and must, therefore, be carried out by suitably qualified and experienced tradesmen. Home insurance is another important consideration as it is essential that both the building (including the extension itself) and its contents are covered for any loss or damage.