The UK locations where homeowners are investing in their own properties over upsizing revealed

New research from online mortgage broker, Mojo Mortgages, has revealed the locations in the UK where homeowners are most likely to build an extension rather than upsizing.

Key points from research:
  • A new report from Mojo Mortgages shows a huge north-south divide in the number of extensions being carried out across the UK.
  • 16 of the top 20 extension hot spots can be found in London.
  • The data shows that in Westminster, there is a planning application for an extension for one in every 11 properties.

Based on analysis of local authorities’ planning portals, The Great British Extension Report, found that homeowners in London boroughs such as Westminster, Kensington and Chelsea, and Camden were carrying out the highest number of extensions.

The data shows that in Westminster, there is a planning application for an extension for one in every 11 properties.

The continued interest in home improvements comes amid continuing fluctuations in the cost of materials caused by inflation and global supply chain challenges, meaning that an extension or loft conversion currently costs significantly more than it did two years ago.

16 of the top 20 extension hot spots to be found in the capital, with other London boroughs such as Wandsworth, Hackney, Hammersmith and Fulham, Lambeth, Southwark, and Kingston upon Thames making up the top 10.

This trend may be driven by a buoyant housing market and above average salaries, with Zoopla data showing that the average sold price for the South East was £444,508 in the last twelve months.

Top areas for planning applications:
Area Name Total number of planning applications in 2021
featuring the keyword ‘extension’		 Total number of properties* Number of properties per
planning application
1 Westminster 1052 11,390 10.83
2 Kensington and Chelsea 1163 13,360 11.49
3 Camden 964 13,200 13.69
4 Wandsworth 2678 43,670 16.31
5 Hackney 1181 20,300 17.19
6 Hammersmith and Fulham 1200 21,060 17.55
7 Lambeth 1689 33,670 19.93
8 Southwark 1370 27,570 20.12
9 Kingston-upon-Thames 1992 40,830 20.50
10 Barnet 3788 78,990 20.85

 

By contrast Blaenau Gwent in Wales is the location which has submitted the fewest planning applications for extensions per property, with a total of one planning application per more than 590 properties.

This is more than double the rate of applications at the second lowest ranking area, Wigan in the north west.

The rankings reveal a true north-south divide across the UK, with northern towns and cities making up 17 of the bottom 20 locations having the highest number of properties per planning application.

Lowest areas for planning applications:
  Area name Total number of planning applications in 2021 featuring keyword “extension” Total number of properties Number of properties per planning application
244 County Durham 1226 231,350 188.70
245 Bolsover 181 34,600 191.16
246 Kingston-upon-Hull 518 101,750 196.43
247 Blackpool 288 53,240 198.66
248 Sunderland 549 111,230 202.60
249 Allerdale 204 42,170 206.72
250 North East Lincolnshire 307 64,730 210.85
251 Stoke-on-Trent 426 103,260 242.39
252 Wigan 505 133,560 264.48
253 Blaenau Gwent 49 29,070 593.27

 

Explaining the findings, Richard Hayes, founder and CEO of Mojo Mortgages, said:

“Although building costs continue to rise, it’s perhaps little surprise to see a huge demand for home improvements such as extensions, particularly in the south east where demand for space is relentless.

“With people continuing to spend significantly more time at home than before the pandemic, the desire to maximise the space available to you is clear, not to mention the fact that an extension has the potential to increase the value of your home significantly.

“Over the last couple of years many people have been able to maximise their savings, and anecdotally we know that these funds are being invested into their existing properties. However, we are seeing continued interest in people remortgaging to finance an extension project and while interest rates remain relatively low, this is an attractive option for many.”

 

Find out more about the Great British Extension Report, visit here.

 

Kindly shared by Mojo Mortgages

Main article photo courtesy of Pixabay