Renovation Tips in the Current Economy
24 November 2023
So you’ve just exchanged contracts, and are fairly happy with the price you had offered to the seller, but you know that the property still needs some work done to make it suit your future needs. With the current high interest rate economy of the UK, which is likely to continue for next 12-24 months, there is few appetite for anyone to want to commit to large construction projects. Not only will it be expensive due to inflation in materials, but with the persistent skills shortage in the building industry labour cost is likely to be high too. UK construction cost consultant Currie & Brown indicated that the skills shortage is predicted to drive an 8.3% increase in labour costs over 2023 [1].
If you are going ahead with works immediately, please also consider waste disposal costs, especially the cost hiring skips – these aren’t cheap, and for a project such as a single storey extension, you can expect to go through at least 2 large skips.
As a new homeowner just been handed the keys, you could either be patient and wait until costs become affordable, or you can tip-out your wallet. But it isn’t actually so black and white, and here’s why.
Is it worth carrying out renovations when inflation is so high?
To answer this question depends on what type of work is involved. If you can do most of the work, in other words, save on labour costs, then the spend could be more manageable as it will just be limited to materials. These could be paint jobs, garden landscaping, or kitchen cabinet refit.
Not all material costs have risen by the same pace, and some some have even dropped. For example, if your project consists of large amounts of timber frame constructions, the good news is that the average cost of timber has dropped considerably since last Summer. I bought several 2400mm softwood sleepers from Jewsons a year ago for about £40 each in July 2022 for a garden raised bed project. As at July 2023 prices on the vendor’s website they were down to £36 – a 10% price drop. In fact, government statistics also confirmed a general fall of 34.9% in real terms on the Softwood Sawlog Price Index in the 6 months to March 2023 [2].
That said, make sure if you are stocking up materials, that they are stored properly, for example, don’t keep timber outdoors exposed to the elements.
What to do on a tight budget?
- Before you start sketching your dream design, think about easier solutions to achieve the same aesthetics – would simply selecting better furniture and rearranging the layout achieve the same outcome? Check out our guides section for inspiration.
- If the project affects the exterior appearance or dimensions of the property, then you might need planning permission if it doesn’t fall under the permitted development rights. If your project is quite bespoke, have a look around neighbouring properties on the same street on Googlemap satellite view to check if others have done similar designs, as yours will likely be granted permission if it is already been done by neighbours.
- You should be costing out materials in as much detail as you can and getting quotes from various suppliers so that you can build an accurate budget when the time comes. This will also help you when you start stockpiling materials.
- Keep your designs simple. Simple solutions are often the most affordable, with longer lasting aesthetic appeal. There are some projects that may devalue your property, especially if it is completely out of place with the neighbourhood.
- If your project is quite large, consider zoning your design into sub-projects that can be started in stages. As time goes on, you may change your mind with certain designs, and this allows you to be semi-flexible.
References