Many homeowners view their property as a financial investment for their future, so it is no surprise that many homeowners will explore different methods for raising the value of their property.
As part of a recent study of homeowner’s financial plans for their property performed by insurance provider coverbuilder, 2784 UK homeowners aged 25 and over were asked to discuss their financial plans.
All respondents were given a list of hypothetical plans and options relating to their property and were asked to reveal which they would consider doing themselves within the next 10 years. The study found:
• 13% of current homeowners plan on purchasing a second ‘buy-to-let” property.
• 28% stated that they plan on making overpayments on their mortgage so that they can pay off the loan before the agreed term length, and cut down their monthly outgoings.
• 32% said that they planned to make use of their spare room by letting it to lodgers.
• 47% of respondents said they plan on remodelling the existing rooms in their home.
• 59% of those asked were planning on adding extra rooms to their home (i.e. loft conversions, extensions, conservatory, etc.)
Those who said they were thinking about embarking on becoming a landlord were asked follow-up questions. 71% of those who said they planned on buying a second property, also said they had not performed research on the process and costs of buy to let, but that they planned on doing their research within the next year.
The 87% who said they were not planning on purchasing a buy-to-let property were asked if it was an option for the future. 21% admitted that they had considered it, but were no longer interested in pursuing it, whilst the remaining 79% said it was something they would like to achieve in the future.
Finally, the data provided by the prospective landlords was analysed to discover the areas of the UK where homeowners were most likely to want to invest in a second property.
