Wednesday, June 6, 2007
Category:
Home Improvements
Moneyextra, commenting on the housing market in April, reported that the housing market continues to mark time, the average house price is increased by 0.82% on the previous month of March. This amount is still below the prices seen at the end of 2006. The average property value of £222,117 is up merely 3.4% on last year.
For both first time buyers and home movers, a small increase in the average house price was noted reflecting a small pick up in activity during the spring.
For the rest of 2007, the property outlook remains restrained, possibly due to the postponement and watering down of the proposed Home Information Packs that were due to be introduced in June.
Robin Amlôt of Moneyextra said, “With HIPs no longer looming over property, one interest rate rise in May and the strong prospect of one or even two more base rate rises to come, the mortgage market will be very quiet.
“While it still appears unlikely that house prices will actually fall back, turnover in the market will fall. More people will choose to stay put – a trend likely to be reinforced by the proposed relaxation of planning regulations, making it easier to expand and improve existing homes.
“That means the market for remortgaging will be where most of the action is going to be in the next 12 months as homeowners look to add value and space to their existing properties.”
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Homeowners wishing to climb up the property ladder could consider a home improvement loan to improve what they already have rather than face a big move. Areas where homeowners could consider improving, include kitchens and bathrooms. Modernising a kitchen by replacing dated units and utilities could add instant value to a property whilst adding a new feel. A secured loan could assist with the building and allow for professional contractors to come and complete the job, ensuring that homeowners have a professional finish. Bathrooms could be fitted with state of the art jacuzzi whirlpools and re-tiled to add character and a home improvement loan could also finance the installation of a new boiler to ensure that there is enough hot water for even the largest of families. A
home improvement loan is made payable over a term to suit the borrower from 5 to 25 years.
