12 Oct The Trade Up Gap
With the Stamp Duty holiday still in full effect and the UK edging towards a second lock down, we have been seeing thousands of people across the country looking to move into a bigger property this autumn, but how much are people willing to pay for an extra room?
Research by our friends at Rightmove suggests that buyers are having to pay on average, almost £68,000 to move from a two-bed flat to a three bedroom house outside of London. This is around £4,000 more than the same period last year, reinforcing the concept that properties of this ilk are in more demand now.
So, if you are looking for more space and think a move out of the city is the answer, make sure that you take a look at some of the stunning properties for sale in Virginia Water and get in touch.
The research conducted by Rightmove focussed on the “trade-up” gap. The South East of England registered the biggest trade up gap of £121,295 when moving from a two bedroom flat to a three bedroom house.
However, the biggest gap was found to be for those looking to move from a three bed home to a four bedroom house; a jump of £183,093 outside London, with asking prices for these properties growing by 15% over the past five years.
Of course this is only true if you are looking to buy a property in order to find more living space. If you bought a smaller property which has potential to add living space, this might be a good option for you. It is widely accepted that creating an extra bedroom can increase the value and prolong your stay in the property.
While adding a bedroom or home office can cost more than £10,000 depending on a number of variables, often the investment pays off with a double bedroom adding more than 10% to the property value.
Relocate for more space
The COVID-19 pandemic lock down has made people recognise that they need more space. Previously, you may not have noticed your home being a little cramped; kids at school and adults at work for most of the day can leave a house seeming empty. Introduce a local or nationwide lock down during which all members of the family are stuck at home, and it becomes a different story.
Most prominently in our area we have witnessed individuals and families who have been living and working in London move out of the city to find more space.
Staying in a specific location and trading up on your property can sometimes be difficult; and those who really need the space and are struggling to trade up often widen their search area to find alternative places in order to get more for their money.
Much of the property ladder is heavily linked to peoples’ time of life. First time buyers will look for smaller properties which are affordable enough to get them on the first rung of the ladder, generally these properties are spacious enough for the beginnings of a small family; they also tend to be lived in for a shorter period of time.
The next step is usually a bigger home with an extra bedroom or two depending on circumstances; this home might be fit for a young family and is owned for significantly longer than the first home. This extended period enables the individual, couple or family to build up enough equity and stability to make the jump to their eventual ‘forever home’.
So with trade up gaps widening, we are likely to see asking prices for medium sized three and four bedroom properties continue to rise as the demand for space increases. Thankfully, there are plenty such properties in our local area.
Get in Touch
If you are thinking of moving to the area, make sure you take a look at our amazing catalogue of properties for sale in Virginia Water and the surrounding areas.
If you’d like to speak to someone about properties to let in Virginia Water, a member of our expert team would be happy to help. You can call us on 01344 843000 or email us. You can also follow us on Facebook, Twitter, Instagram and LinkedIn.