Has Covid-19 Sparked a Renovation Revolution?
Renovation and refurbishment projects are cost-effective ways of increasing the value of your property. Whether it be an extension, replacing old fixtures with modern furnishings, or improving the environment or sustainability of a home – there are always plenty of creative ideas available for homeowners.
As we all know we’ve had somewhat of a love affair with home improvement projects. But Covid-19 has only increased the desire for individuals to take on new refurbishment or a renovation project, be it for their primary residence or a buy-to-let property.
A survey undertaken by NatWest Bank revealed that over three in five homeowners (62%) would consider remortgaging to undertake a home improvement project, and we are seeing this increase with our clients too!
As a company that works closely with property development, buy-to-let landlords, and brokers, I believe that we’re on the brink of a renovation and refurbishment revolution that will improve the standard of properties available on the market. At the same time, it will help bring about the country’s post-pandemic recovery.
Sparking Demand for Home Improvements
You may be thinking to yourself exactly why homeowners are considering improvement projects when we are in the middle of the global pandemic with no real end in sight. In reality, the rise in activity and demand for such projects is directly related to the COVID-19 pandemic.
Since 23rd March 2020, we have all been adhering to the new Covid-19 restrictions and the social distance measures. When the lockdown was announced, the majority of commercial workspaces and offices were temporarily closed. This meant that a significant proportion of employees were forced to work from home; while this did pose initial challenges, the transition to remote working was an eye-opening experience for certain businesses.
For the first time, this enables businesses to become nimble within their business model approach, and it became apparent that many workers could perform their job without having to be physically present in the office. As a result of this business leaders have begun questioning whether they should consider downsizing their offices if this type of flexible working is likely to become the norm post-pandemic, which after many high-level conversations we are more leaning towards a 70/30 approach to working from home.
As such, it makes sense for individuals working from home to upgrade and improve their homes, so that their home can effectively accommodate their working needs while at the same time still functioning as a living space.
This type of thinking has already resulted in a significant increase in renovation projects during the summer. According to Money.co.uk, UK homeowners have spent over £55 billion since the introduction of lockdown measures. Two-thirds of homeowners (65%) also said that spending more time at home has inspired them to renovate their properties.
A survey released by the Federation of Master Builders also shows that increasing market interest for home improvement projects has resulted in more work for SME firms based within the building industry. Based on their experiences, 42% of SMEs told the Federation of Master Builders they are predicting higher workloads during the Autumn months.
This should be seen as positive news. To promote consumer spending and investment activity, the UK Government has been focusing on the property market. This is due to the sheer size of the sector and its significance a key driver of economic growth and productivity. An increase in home improvements projects will not only increase the value of the existing stock, but it will also provide heightened demand for construction and development firms to take on new projects.
Financing Your Home Improvement
Market Financial Solutions have been working closely with homeowners undertaking renovations or refurbishments, be it to comply with HMO standards or simply extend a property. Based on the conversations our Business Development Managers have been having, what has become clear is that some are finding it challenging to access the finance needed to take on such projects.
Banks have become much laxer with their lending criteria at the moment, but please note that this is resulting in applications taking longer to process. Which can have significant consequences, particularly when it comes to meeting deadlines and minimising potential construction costs. For this reason, anyone considering a home improvement project in the coming months must first ensure they have the necessary finance in place.
This means looking beyond the limited amount of loan products available on the high street and also considering bespoke loans that can be deployed by specialist finance providers. Unlike mainstream lenders, specialist finance providers can deploy loans quickly that are tailored to meet the individual needs of each applicant. What’s more, loans can be structured taking into account the construction deadlines.
From my perspective, I anticipate a sustained rise in the number of home improvement projects taking place. This makes sense, particularly for homeowners who are looking to increase the value of their property through the creative flair of an extension or modern refurbishment.
The ultimate success of such projects, however, will depend on whether homeowners have the necessary finance in place but also with the correct professional team around them.
We love our studio, and we’re proud of the work we produce and the clients and contractors we work with. To learn more about the work we do, or would like to have a casual chat about your next project, please get in touch, where we’d love to hear from you!