The week unzipped: Sluggish housing market prompts owners to improve rather than move

HOUSEHOLDS are improving their homes rather than moving, according to the Royal Institute of Chartered Surveyors.

It revealed that 48 per cent of chartered surveyor estate agents reported that slow sales are prompting people to improve rather than move, with extra bedrooms adding the most value. A new bathroom or kitchen were the next most valuable. Adding a conservatory, or reinstating period features were seen as desirable optional extras but not ones which add value.

However, RICS warns that the cost of work is not always covered by a potential increase in a property's value. It advises homeowners not be tempted to over-value an improvement and expect high instant returns irrespective of market conditions. When extending, make sure that the accommodation provided is balanced with the size of the plot.

When undertaking a loft extension or basement conversion try to keep the style of the new rooms in sympathy with the style of the rest of the property. A modern extension on a traditional property may look odd and lose appeal. Bear in mind most areas have a ceiling price. Improving a poor property in a good location is better than improving a good property in a poor location

Offset the best

OFFSET mortgage borrowers have earned 1.4 billion more than those who invested in best buy savings accounts, by using their spare savings to reduce their mortgage balance, according to First Direct.

Almost half a million offset borrowers have made a return of 1.9bn over the last two years, compared with just 534 million they could have earned with the equivalent best buy saving accounts. The average offset savings balance has risen by 19 per cent since 2009 compared to a 2.5 per cent rise in the average loan balance.

The typical offset saving balance is now 26 per cent of the mortgage balance, compared with 22 per cent in 2009.

Prices edge up

UK HOUSE prices edged up 1.2 per cent in June but remain 3.5 wper cent below last year according to Halifax figures, and were still down 0.5 over the quarter.

The Halifax said low interest rates and stable mortgage approvals were behind the mild improvement.

Blow for consumers

MORE than 450 Moben, Kitchens Direct and Dolphin customers will lose 1.5m after brand owner Homeform entered administration. The three brands have ceased operating although appointed administrator Deloitte is still searching for buyers. The group has sold off Sharps Bedrooms, another Homeform brand, and the new owners will fulfil existing customer orders. Customers who have paid a deposit but not received goods should contact their card provider, finance provider or the customer helpline on 0800 840 0118 to claim back their money. Those who paid cash deposits can write to the administrators but Deloitte warns they are unlikely to receive a refund.