Has the Cost-of-Living Crisis Made It Cheaper to Move Than Improve?
With rising labour and materials costs, is it now more cost-effective to move rather than renovate?
There’s one question that millions of homeowners have asked themselves over the years: should I move or improve?
While both options have pros and cons, the broad consensus has generally been that it’s cheaper to renovate than sell up and buy somewhere else.
At least, that’s what people used to say. However, in recent months, many in the property industry have questioned whether this is still true.
Times are changing
Scottish property expert Paul Hilton from the listings portal ESPC is among those questioning whether it’s still cheaper to improve than move.
He recently said that due to the ongoing impact of inflation and Brexit, it “no longer seems to be such sage advice”.
“The costs of having work done have escalated wildly over the past five years,” he said.
“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.”
So is he right? Let’s look at some of the factors that could have swung the pendulum (from a financial perspective) in favour of moving.
Rising cost of materials and labour
Even though inflation is (thankfully) nowhere near as high now as it was back in 2022, we’re all still feeling its impact.
Materials such as pipes and fittings jumped by 17.6% in 12 months, and bricks and tiles increased by 6%.*
Then there are rising labour costs. The cost of hiring an electrician rose by 9.1% between the second and third quarter of 2024, while calling in a locksmith was up by 7% and roofers up by 4.9%.**
Overall building expenses rose by 19% in the last quarter.*** The average building job jumped in price from £10,626 to £12,634, while fitting a kitchen went up by 12% and the cost of plastering increased by 16%.
If you’re carrying out extensive refurbishments, the increased costs of fixtures, fittings and labour can quickly add up.
Making the right choice
Ultimately, in the improve-or-move debate it all comes down to doing your research and calculations.
It’s useful to talk with local property experts who can give you an idea of what’s available on the market and advise on how much specific works could add to the value of your property.
Also consider non-financial factors such as the strain of living in a building site versus the stress of navigating viewings, property chains and solicitors.
There’s a lot to weigh up, but we’re here to help. Call us to discuss your options.
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*Building Materials and Components Statistics, Dept for Business and Trade, Oct, 2024.
** The most recent Trade Costs Index issued by listings service HaMuch.
***Checkatrade Home Improvement Index.