The reality is that the future of the UK’s relationship with the EU is still unclear, and there is still a huge amount of uncertainty about the actual impact that Brexit will have on the residential investment market in London. It is only in the near future that we will know whether Brexit along with the withdrawal agreement will have a positive or harmful effect on the UK economy and the residential investment market.
This prolonged period of unpredictability has been and will continue to be very damaging to the already fragile confidence of domestic and foreign investors who are looking to acquire a piece of the once booming London housing market. The UK is currently in the midst of a housing crisis and Brexit uncertainty is contributing to this. House prices are decelerating in previous prime spots such as London and Aberdeen. Whereas, cities in the north such as Leicester and Birmingham are experiencing a rapid growth in house prices. Unfortunately, the freedom of buy-to-let investors is being restricted by new additional regulations and taxes. The introduction of interest rate growth by the Bank of England is also prompting investors to make more simple residential investment decisions.
According to data from Rightmove, house prices in London have dropped by 1.7% in November 2018 (Rightmove Property News,2018). The value of the London housing market has fallen far more than any other UK region. Even some of the most expensive residential areas in Europe such as Kensington and Chelsea, have seen a drop-in property listing prices. As a result of these price reductions, basement conversion and extension are becoming a more popular and feasible option for home owners in many London areas. More and more London homeowners, are choosing to contact basement specialists to oversee the expansion of their homes, thereby increasing its value. Adding a basement to a home can increase its square feet without having to forfeit any outdoor or indoor space. Furthermore, London basement conversion has an abundant amount of benefits which also include creating space for a personal workspace or an additional room which could generate rental income. Basement specialists, such as Cavendish Basements can do this along with providing an exceptional service that increases the dimension and economic value of a London home by creating a basement and expanding it in line with our client’s needs. Unlike many other basement specialists we pride in ourselves in offering an end to end service utilising our in house architect and construction teams to successfully deliver our projects.
Overall, Basement conversion and extension is becoming more common because it is an option that has less short-term financial risk and more long-term financial benefits compared to purchasing a new residential asset in London that is more than likely to be decreasing in economic value. Contact Cavendish Basements to start your basement conversion project.