Homeowners add to their existing homes rather than move to new ones

As the economic gloom continues with the announcement that the economy has just entered a double-dip recession, people are not moving home as much as they used to. This has meant that many people are considering various reconstruction efforts to their current property so that they are better suited to their needs, and they can avoid moving home and all the costs associated with that.

One of the reasons this is taking place is because people are uncertain about whether they will have a job in the near future. This makes it difficult for them to know whether they will be able to afford a house move, and puts them off making these sorts of long-term decisions.

Rupert Coles, from Prime Purchase has stated, “Putting an extension on a home means that people are able to make their homes fit their requirements better, but without all the expenses associated with moving. This is rather strange as the current conditions in the market suggest that it is now a favourable time to change homes. If you are in the position to move to a larger home, now is a good time to do so as larger houses have become more accessible.”

Until recently, the government did not charge people VAT if they were making any adjustments to a listed building. This was something that was previously not charged and it is making renovations unlisted buildings much more expensive. Calculating VAT into a renovation is very important as it is an expensive cost.

There are many costs associated with moving house as well and Mr Coles highlights the importance of considering all of the costs associated with moving house. He continues, “Moving house is not just about the taxes such as, Council Tax and Stamp Duty, but all of the other fees associated with the move, such as the cost of hiring a surveyor and a solicitor. Land Registry searches are also expensive and so is moving your mortgage.” If a renovation is a possibility for you, compare this with the cost of moving home, then you can make an informed decision about which is the right financial decision for you.

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