Many are planning to add extra bedrooms
A total of £217 billion will be spent by British homeowners on renovations and extensions over the next two years, new research from Direct Line Home Insurance has revealed.
Almost 360,000 homes will be renovated or extended as more than 6.7 million homeowners plan to do some form of work on their property before the end of 2024.
The most popular renovation type set to be carried out by homeowners is a loft conversion, with 52%, or an equivalent of 3.5 million, planning on expanding up into their attic space.
Kitchen extensions (37% or 2.5 million), rear living space extensions (34% or 2.3 million), and dining room conversions (27% or 1.8 million) were also being considered by homeowners.
The research also found that the average cost of conversion projects is £32,090, which equates to 12% of the price of an average UK home.
“With property prices and the cost of moving so high, it often makes better financial sense to improve rather than move and our findings suggest millions of people are planning to do so,” Dan Simson, head of Direct Line Home Insurance, said. “Spending money on renovations allows people to create their perfect home, while adding value to their property, especially if this involves putting in another bedroom.”
A significant number of homeowners are looking to add extra bedrooms to their homes, with an estimated 2.5 million new bedrooms being added to UK properties over the coming two years.
Direct Line said that this trend could lead to the death of one-bed and two-bed houses, as more than half a million (530,000) two-bed homes and 140,000 one-bed homes are planning on adding either one or two new rooms in the coming years.
The result will be a sharp increase in the number of properties with four or five bedrooms, with stock expected to rise by 15% and 72% respectively as owners look to increase both living space and value.
When looking at the reasons behind people wanting to make changes to their homes, the need for extra space is unsurprisingly the top renovation trigger, with half of those who have or are planning to renovate, doing so on this basis.
The drive to add value is a trigger for 32% of homeowners, while remodelling or updating the current property is a key reason for 26%.
“Anyone who is having major work should inform their insurer about the project and make sure their buildings and contents policies accurately reflects the new size of their home, to avoid the risk of being underinsured,” Simson said.
The research commissioned by Direct Line was conducted by Opinium among a nationally representative sample of 2,003 adults from February 8–11. Analysis excludes those living in a property where renovation work is not possible.
