Renovation, restoring, extending, decorating of tired old houses is a passion for some, a nightmare for others. It’s not for the faint-hearted, and am I’m currently enjoying Old House New Home on Chanel 4 http://www.channel4.com/programmes/george-clarkes-old-house-new-home. The joy and sense of achievement after all your hard work ( and cash) when it’s finished for you to enjoy and live your life is a celebration indeed. For some it’s a way onto the property ladder or an upgrade to a larger home, hoping for a cheaper purchase price, which will increase in value when completed – hopefully worth more than they’ve spent, and to live and enjoy their old house, new home. Some lenders will require the house to be habitable though, insisting on there being a bathroom and kitchen.
Of course there is always competition, winning these properties from other like minded people or property developers and builders. The latter looking for pure profit of course, and may renovate as quickly and cheaply as possible for a quick return. If the plot is large enough a developer is likely to demolish the existing house and build a larger one, two or possibly more (subject to planning consents).The latter option is not so easy for non builders or developers due to mortgage restrictions although there are some specialist companies who offer this type of lending, and information can be found on http://www.buildstore.co.uk/ I personally dislike the waste of demolishing a structurally sound house, requiring work, but see the attraction on saving 20% on the VAT bill. It’s also not very green or ‘eco’, unless replacing with an ‘eco’ ‘passive’ house.
Extending our existing homes if possible has become more popular due to the high cost of moving – stamp duty, legal and agents fees, plus the extra on the purchase price for that extra bedroom, living space or bathroom.
Whichever way you decide to move, renovation project or extending, the ordinary home owner has a distinct disadvantage – VAT. 20% is a high proportion of the budget.(Barn conversions and some renovation projects and building your own home are zero rated). VAT is on fixtures, fittings and labour charges. If a dwelling has been empty for longer than two years or more you may be illegible for a reduced rate of 5%. For details go to https://www.homebuilding.co.uk/ To encourage and help ordinary folk, the Government should lower the VAT threshold on renovation projects. It’s greener too. Years ago, grants were available to help fund bathroom installations (if there wasn’t an inside bathroom), damp and woodworm treatments. Alas this help has long gone. Wouldn’t it be helpful to bring funding back for essentials, subject to certain criteria – income and length of residency, perhaps to assist those on lower incomes make a home of their own?
With the housing crisis, and lack of affordable homes especially in certain areas, a lot of young people with the dream of owning their own home is just that, a dream, despite working hard. There are Government schemes – Help to Buy ISA where the Government will top up your savings by 23% (up to £3000.00). The drawback being that the house you buy must have a purchase price of up to £250,00 .(up to £450,000 in London). Mmn. Try finding a house in the home counties for that price. The Help to Buy Mortgage Guarantee is a better deal, it lets you buy a home with a 5% deposit. The guarantee is to the mortgage provider, not you as a buyer. The purchase price is up to £600,00, which is more realistic in the high priced London area. However, you still have to prove you can afford to make the repayments of course, and with the average living salary, its still a tough call.
Hard earned cash pays their rent, living expenses and student loans, with little left to save for their deposit. House sharing in your twenties is not the same when in your thirties, especially if you want a family. This is now a major decision factor too, maybe putting your life ‘on hold’. You can’t make the home your own either, due to tenancy agreement restrictions. Are we regressing to earlier decades, when complete families lived in a few rooms in a house shared with others? In 1918 the majority of households in England and Wales were rented, with just 1% socially, rising to 31% in 1981. Today the highest percentage of renters is in London, along with the highest property prices.
The newly built starter homes on big estates are, in some cases, poorly designed and cheaply built, with little more than a ‘postage stamp’ for a rear garden. There are great architects who could design well planned homes, which could adapt to the changing needs of the occupants over the years to extend if need be, i.e. the option for a loft conversion. The ‘Lifetime Homes’ concept was developed in the early 1990s’ by a group of experts including Habinteg Housing Association and the Joseph Rowntree Foundation to design homes to support the changing needs of the individuals and families at different stages of their lives. From raising children, coping with illness or reduced mobility. http://www.lifetimehomes.org.uk/pages/revised-design-criteria.html
Shelter are currently running a campaign to celebrate 50 years, called ‘What does home mean to you? https://england.shelter.org.uk/ to raise funds and awareness of the housing crisis. So what does home mean to you?
House plan found on Google search, unfortunately without reference to the designer, for accreditation.