Don’t improve – move!

ESPC CEO, Paul Hilton, discusses how rising renovation costs mean that it could be more cost effective to move to a turnkey property in 2025.

How many times have you heard the adage “don’t move, improve!”? Over the years, as the housing market has expanded and swelled, it’s been the go-to advice – there’s even been numerous TV shows themed around the idea (Love It or List It, or Renovate, Don’t Relocate, anyone?). For so long now, it’s been much more cost-effective to make major changes to your current property, such as extending, converting or fitting new kitchens and bathrooms, rather than moving to a new home, given all the associated costs and of course, spiralling property prices.

However, with the ongoing impact of rising inflation rates and Brexit on the home improvements industry, this no longer seems to be such sage advice.

The costs of having work done have escalated wildly over the past five years – Which? estimates that the cost of installing a new kitchen alone has soared 22% since 2019, while it’s been well-documented that the costs of renovations like extensions or loft conversions have accelerated beyond the point of affordability for many homeowners, now costing tens of thousands of pounds more than they would have a few years ago.

We’re certainly seeing far higher levels of interest in turnkey properties, which is a real change from the trends of the earlier 2020s. Renovation projects were all the rage a few years ago, as they were seen as one of the few ways that buyers could secure a larger property or a home in a more desirable location – but with the current costs involved in a large-scale refurbishment, we’re seeing buying patterns switch towards fully-finished properties that need next to nothing done to them.

Anecdotally, we hear many such stories to support this – homeowners who bought doer-uppers in their ideal locations, planning to upgrade the property over time, who have found that the costs involved would be so high, that it makes more financial sense to move to a more finished property, even if that means compromising on location.

Our monthly list of the ten most-viewed properties on espc.com also reflects this, with overwhelming interest in turnkey homes compared to those that need more substantial work doing to them. It appears that buyers would rather plunge their hard-earned savings into the property itself (perhaps taking a hit on location in the process) rather than commit to the ever-increasing costs associated with renovations.

We’re also seeing much stronger levels of interest in properties that offer long-term potential, which seems to be very sensible when you also take into account the impending expectations of the Scottish Government when it comes to energy efficiency. If we’re all going to need to spend thousands of pounds on upgrading our homes’ heating systems, surely it makes more sense to buy a property that you can stay put in for a long time, rather than one that you may need to move on from in three-five years? Buyers may even be more tempted than before to choose a newer property which comes fully-fitted with all the eco-friendly bells and whistles.

So, if you’re considering what you need from your property, and weighing up whether to make the changes yourself or move to a home that’s more aligned with your wishes, there’s plenty to bear in mind. The costs of having work done may be far higher than you estimate, so it’s really worth doing your sums prior to committing to making improvements. It’s also worth noting that every property (even in Edinburgh!) has a ceiling price, so if you’re planning on making major changes, you should be mindful of the fact that you may not recoup your costs at sale.

Moreover, it’s a good time to move house. There is far more choice on the market than we’ve seen in recent years, giving buyers plenty of options and a far less competitive environment for making offers, meaning you’re more likely to secure a home for closer to its Home Report valuation, allowing you more flexibility in your affordability. Mortgage rates are slowly falling too, meaning you could find better affordability now than you could even a year ago.

I tend to find that once you have that inkling to move, it generally doesn’t go away – so even if you decide to stay put and invest your money into refurbishing your current home, you might find that you revisit that decision sooner rather than later. My advice? Sooner means taking advantage of a market that’s currently a great place for a buyer to be – so I’d say, perhaps it’s time to start your search for your fully-formed dream home after all.