By Extensions have been found to add great value to a number of homes across England and Wales, according to new findings by Rightmove.
In the first survey of this kind, Rightmove took data, including labour costs and the value per square metre for homes, into consideration. Analysis undertaken by the real estate portal found that the average asking price for a single square metre of a house in England and Wales was £2,954, having risen 19 per cent in the last five years.
Rightmove added that value per square metre was significantly higher in some regions compared to others, indicating some of the places where extensions could be far more lucrative to construct for homeowners.
The rising value of asking prices wasn’t just confined to square metres of the average home across England and Wales in recent weeks – asking prices for homes grew to £307,499 in January, according to property search website Home.
London leads the way
The capital was found to have the greatest value per square metre for a home in England and Wales, at an average asking price of £10,427 in West London, one of the most expensive postcodes in the entire country.
In comparison, Sunderland proved to have the cheapest asking price per square metre of home, at just £1,417. London’s outperformance is a reflection of much higher land prices, higher demand and the lower level of available housing stock in the capital.
London’s prime property sector has seen a particularly strong performance in recent months, with rental prices recovering after several years of weak price growth.
Rightmove unveils Extension Cost Calculator
Rightmove published its new findings, alongside the unveiling of a new House Extension Cost Calculator. This Calculator is intended to help homeowners determine how worthwhile it would be for them to consider adding extra space onto their property in the form of a permanent extension.
While parts of London would seem to be a good choice to consider adding a few extra metres of space to one’s home, the Calculator found that, having taking labour costs into consideration, a medium extension of 25 metres squared would cost a homeowner as much as £29,975 in Kingston Upon Thames.
By contrast, Sunderland homeowners would enjoy a significant saving, with an extension of the same size costing just £19,049. Birmingham proved to be the cheapest place to seek an extension of 25 metres squared, at a cost of £17,972 in total.
Tim Bannister, director of data services at Rightmove, explained: “Homeowners need to think about why they are doing an extension. If it’s to add value to a home, then it’s worth bearing in mind that local markets will differ.
“The final cost will depend on the materials that homeowners might need to buy, as well as any extras such as planning permission. The key thing, however, is to be clear on how much you can afford to spend, and to make sure you have a contingency pot as well.”
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