Invest in your property

With the woeful rate of interest paid on savings accounts by the traditional institutions and not even considering the awful spectacle of people queuing to try and withdraw their life savings before they disappear, it makes sense to look for other ways of safeguarding our cash and hopefully, see some growth.
There are few options open to us as normal mortals, not many of us are able to devote the necessary time and energy to controlling our own stock market and similar investments so we need to find alternatives. What could be easier, you’re sitting in the answer. Despite cyclic fluctuations, the one sure thing is that upward pressure on house values in the UK can only continue by virtue of two simple facts; we have too little land and too many people. These key factors will not change for the better, rather, with an increasing population the pressure can only grow. An investment in your own property is, as they say, “is as safe as houses”.

VAT rises but the battle for change continues.

Vat has now returned to its previous rate of 17.5% and may yet increase further in the budget,however, the FMB continues to support the Cut The Vat Coalition campaign on your behalf, for a lower rate on building works…

The Cut the VAT Coalition believes that reducing VAT from 17.5 percent to 5 percent for all maintenance and home improvement work would help the Government achieve its target of cutting carbon emissions by 80 percent by 2050. It would benefit millions of UK homeowners by getting rid of cowboy builders, helping those who cannot afford vital repairs to their homes, bringing empty properties back into use and protecting the countryside. On 10th March 2009 the council of European Finance Ministers (Ecofin) Council announced that it would allow EU Member States to permanently reduce VAT to five per cent. Since then the campaign has focused on lobbying the UK Government to implement the cut. Please visit the “what can I do” page to see how you can get involved and help us lobby the UK Government.

The good, the bad and the ugly

Read what The Telegraph had to say about home improvements.
Extracts from an article that appeared in ‘The Telegraph’ on Sat. 2nd Feb. 2009, which discussed the possibilities of adding value to your home and listed the most financially beneficial in the following order;

• Loft conversion
• Brick built extensions
• Basement conversions.
• New kitchen.
• New bathroom.
• Redecorating.
• Reinstating period features.
• Conservatories.
• Creating an outside space.
• Garages and parking.

“It’s a well kept secret but most home improvements are actually a waste of money” so what is the truth? Whilst the new kitchen, bathroom or conservatory will add some value to your home they are not the best use of your money. Ongoing research studies by organisations such as Nationwide Building Society show that adding square footage to a house is the sure-fire way to increase value, in particular, loft conversions, extensions and basement conversions. A good quality loft conversion can add 15-20% to the value of your home, an extension in keeping with your home and those around you, can add up to 10-15%. Compare that to an all singing, all dancing new kitchen with shiny new appliances, which will only add a maximum of 5% for a not dissimilar outlay. The full article can be sent to you on request.

A ‘greener’ glow at a lower cost

Energy efficiency: loft conversion V brick extension Carbon dioxide (Co2) emissions are a major contributor to climate change, In the UK, domestic emissions occur through the use of electrical appliances, gas stoves, the energy used in heating water and heating the general living spaces. According to The Energy Saving Trust, homes in the UK are responsible for approximately 28% of domestic Co2 emissions.

Carbon dioxide (Co2) emissions are a major contributor to climate change, In the UK, domestic emissions occur through the use of electrical appliances, gas stoves, the energy used in heating water and heating the general living spaces. According to The Energy Saving Trust, homes in the UK are responsible for approximately 28% of domestic Co2 emissions.

Arguments

Loft Conversion

• A more environmentally friendly method, most materials used are from renewable sources
• Improves the overall energy efficiency of the house
• Does not increase heat loss
• Energy efficiency/savings continue for the life of the house

Brick Built Extensions

• Adds nothing to the overall energy efficiency, in fact increases areas of heat loss
• Uses less environmentally friendly materials i.e. cement
• Still uses as much timber as a loft conversion

Additional Factors

The extension is usually more expensive and adds less to the property value, it will almost certainly require planning permission, it will cost more to run whilst the conversion should save you money in fuel bills and you are helping the planet.

The Energy Saving Trust claims that the payback period for a loft conversion is “usually less than seven years and the fuel cost savings continue for the life of the building.” They also highlight the fact that the quality of the builder’s work has a significant impact on the energy efficiency of the building. Although the quality of materials is important, the quality of workmanship is equally important. To obtain the highest level of efficiency the installer must ensure the maximum ‘air-tightness’ of the space is achieved. In particular, Dormer windows a re complicated structures and require skilled tradesmen to construct them to meet the stringent building regulations.

‘Best practice’ insulation standards are imposed by the local authority building control department working to the ‘UK Building Regulations.’ All building materials, floors, walls, roofs and windows have a thermal transmittance or ‘U’ value, this is a measure of its ability to retain or lose heat, the lower the figure the less the loss. Therefore, the regulations specify maximum permissible values for each element in order to reduce fuel usage (you save money) and thus reduce Co2 emissions. Put simply, the more insulation you build in, the less heat you lose.