Renovation: popular alternative to upsizing for homeowners

December 24, 2017 by Brendan

Home owners

A higher number of homeowners are opting to renovate and extend their homes, rather than upsize, according to a recent study by Lloyds Bank.

In 2017, the number of people upsizing to their next home was 367,000, in comparison with a decade earlier when the numbers were up to 705,900. The number of homeowners choosing to upsize was 1% lower than the previous year. The research shows that around 60% of homeowners feel that moving home has become too complex during the last 10 years, while 25% have plans to move within the coming five years.

Upsizers, or second steppers, as they are also known, are finding it difficult to afford to move to the next rung of the property ladder, as fewer homes are coming onto the market and moving costs are far higher. In addition, the stagnation of wages means that homeowners find it difficult to borrow more than their current mortgage. According to the mortgage products director at Lloyds, Andrew Mason, more people are staying where they are and investing in renovation or extending their current property.

High moving costs is cited by 22% of homeowners as a reason to stay where they are rather than upsize, along with the costs of stamp duty, particularly in London. As homeowners stay put, this restricts the housing supply coming onto the market for first time buyers. CeMAP qualified mortgage advisors are using their knowledge to help homeowners to find a suitable mortgage for their requirements, with the most suited lender.