Is It Better To Move House Or Extend?

With house prices rising rapidly, many homeowners are considering whether it’s more beneficial to extend their current property or to move house. It’s important to evaluate both options carefully, taking into account the costs involved as well as the reasons for either moving or extending.

Opting for an extension can increase the value of your home and create additional living space. However, it’s essential to factor in the overall cost of extending and whether it fits within your budget. Whether you should extend or move house largely depends on what will bring the most benefits to you and your family. To make this decision easier, we’ve compiled a guide that outlines the pros and cons of both options, helping you make the best choice for your situation.

The Facts

According to data from TSB Bank, 2 in 5 homeowners prefer building an extension over moving house. In May 2019, new regulations were introduced for Permitted Development Rights, altering planning laws that impact home extensions. TSB’s research sheds light on public opinion regarding these new laws and how they may influence people's decisions to extend.

Despite nearly 80% of Brits believing the new planning laws would lead to more disputes with neighbours, 41% of homeowners would still choose to extend rather than move. As a result of these legal changes, 19% of homeowners are now more inclined to build a rear extension within the next 3 years, thanks to the new laws that allow larger rear single-storey extensions.

Interestingly, 35% of those looking to extend their homes said they would consider remortgaging to release equity to finance the extension. If you're considering this, it's important to work with a remortgage solicitor to guide you through the process. The trend of refurbishing and extending properties has steadily gained popularity, and this research highlights that it remains a key consideration for many British homeowners.

For those opting to extend instead of moving, the main reasons cited were a strong attachment to their current home (50%), the high cost of moving (49%), and a preference for the local area over others (25%). The significant expense of moving house continues to be a primary factor driving many Brits to choose extending their home instead.

TSB’s Head of Mortgages, Nick Smith, commented, “It’s no surprise that homeowners see the cost of moving as one of the biggest obstacles to buying a new home or climbing the property ladder. Building an extension provides a fantastic opportunity to gain extra space without incurring additional expenses like stamp duty and legal fees.”

James Ginley FRICS, Technical Director at Legal & General Surveying Services, highlighted the value of property extensions: “When space is limited, simply adding floor area can increase value. However, the design, layout, and functionality of homes are becoming more important. Buyers want more space, but tasteful extensions that offer modern open-plan living are especially value-boosting.”

Is It Better To Extend?

Generally, extending your home can be a cost-effective investment that will pay off when you eventually sell — but this isn’t always the case. The location and demand for your property often determine whether your extension will add value when it’s time to sell. For instance, adding a basement to a property in London is usually a financially viable option due to the high demand and property prices in the area. However, this might not be as cost-effective or practical in other parts of the UK.

That said, extending your home in some capacity is often a more financially sensible choice. The cost of building an extension will depend on various factors, including location, size, and the type of build you plan to undertake.

Cost of Extending A House

These are the average costs for a single-storey extension in the UK, not including VAT. These prices will vary depending on size, location and extra services.

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Before beginning any work on your home extension, you'll need to secure planning permission unless your extension is a single-storey project that doesn’t extend more than 3 metres from the original structure. The cost of this planning application typically ranges between £190 and £206, depending on the size and location of the extension. For example, in England, an application for an extension currently costs £206, while in Wales, it’s £190.

You will also need to determine if a party wall agreement is necessary. These agreements are typically arranged by a surveyor, so keep in mind the potential cost of hiring a Party Wall surveyor.

Additionally, don't forget to factor in the cost of creating the plans for your extension. You can either hire a professional architect or architectural technician to prepare the plans for your chosen builders, or you can hire a design-and-build firm to handle both the planning and construction. The cost for architectural drawings typically ranges from £500 to £1,000, depending on the scope of the project, the level of detail, and the firm you choose to work with.

The cost of a single-storey extension generally falls between £1,500 and £2,000 plus VAT per square metre. On top of this, you may need to account for additional fees, ranging from 3% to 10% of the building costs, for architects, structural engineers, building regulation approval, and planning permission. Selling a house without building regulations approval is possible, but it can complicate the selling process.

Prices will vary depending on the quality of the work, location, and the company you hire. If you opt for a two-storey extension, costs are likely to increase. The average cost for a quality double-storey extension can range from £1,800 to £2,500 per square metre, or even higher, excluding VAT.

The Verdict:

While both moving house and extending your property can be time-consuming processes, extending your home can bring its own set of challenges. Your home will temporarily become a construction zone, which can be stressful not only for you but also for your children and pets. Additionally, you might face extra costs if you need to temporarily move out during the building period.

However, extending your current property can be a cost-effective and practical solution, especially as it saves you from navigating the complexities of buying and selling a home. It’s important to remember, though, that you might not always recoup the full cost of the extension when it comes time to sell. Extending may not be the best choice if you're not planning to stay in your property long-term.

Which Home Extensions Are Worth It?

There are many types of extensions that you could add to improve your home. However, it’s important to know which would be worth the money and effort before you start spending your entire budget. To help you decide which extension would be the best fit for you and your home, we’ve created a list of some of the extensions that are more likely to increase the value of your property.

Keep in mind that each extension varies depending on the quality of work completed. But the best extensions to consider before planning are:

Single-Storey Extension

If you're looking to add extra living space to your home, a single-storey extension could be the ideal solution. Whether you're considering a rear extension or a side return extension, there are various options to choose from to meet your specific needs. This type of extension is particularly suitable for growing families who need more space.

Single-storey extensions are also adaptable to different budget ranges, as the cost will vary depending on the size of the extension. The smaller the plan, the more affordable it will be. It’s a cost-effective way to expand a room or hallway and create the extra space you need, potentially adding between 5% to 10% to your home’s value.

However, if you're seeking even more space, you might consider a double-storey extension. While the initial cost will be higher, it can increase your property’s value by up to 20%. Keep in mind that a double-storey extension comes with significantly higher costs but provides substantial benefits in terms of both space and value.

Loft Conversion

Whether you’re adding a bedroom, bathroom or both by converting your loft, the value of your home could increase by 12.5% by having this work done. Depending on where you live and the company you hire, you could expect a cost of around £1,000 per square metre.

Loft conversions are one of the most popular and inexpensive ways to add space and value to your home. It’s one of the least disruptive extensions, ensuring that you and your family are provided with the necessary added space without the chaotic disturbance that often comes with building work.

Conservatory

Adding a conservatory can be a more affordable type of extension, costing around £5,000 in total, depending on the size. They are also fairly easy to install and can add as much as 5%-7% value to your property. Conservatories have become a popular extension throughout the UK, helping homeowners enjoy their gardens without the dreaded British weather putting a damper on their evening.

Kitchen Extension

A kitchen extension can be costly, averaging between £1,260 and £1,680 per square metre depending on the size of your property. When done right, it can add a lot of value to your property. You have to think about the plans and budget so that the necessary work is completed to the highest of standards.

Like bathroom extensions, kitchen extensions can be more complicated than other extension types. You have to consider the plumbing involved with a kitchen extension and how the work needs to be expertly done. It can be worth the budget and the work but it does have to be done right.

Any of the above types of extensions can be used to add enough space to extend your kitchen. Don’t forget to compare plans and find the one that best fits you and your requirements.

Changes in Permitted Development Rights

Depending on the type of work you’re planning, you may or may not need planning permission for your extension. If planning permission is not required, then Permitted Development rights come into play.

In May 2019, Permitted Development Rights were updated with new regulations, changing planning laws in the UK. A significant change was the introduction of a new order that makes the right to build larger, rear single-storey extensions permanent. This means homeowners can now build bigger extensions, subject to approval, without having to worry about their rights expiring.

To ensure you're fully informed, it's recommended that you read the government’s guide on permitted development for homeowners. This will help you understand what work is allowed under Permitted Development and what may require additional permissions.

Do I Have Permitted Development Rights?

If you do not need planning permission, then your permitted development rights come into play. However, it’s important to be aware that any space added by previous owners of the house since 1948 counts towards your allocation.

Below are the most common situations where you will most likely not have permitted development rights or have restricted rights:

If you live in a Designated Area like a National Park, Conservation Area or an Area of Outstanding Natural Beauty

If you’re self-building a new project where the proposed plans are bigger than the existing property

If you live in a flat or maisonette

Other than these situations, you will most likely have permitted development rights. But it’s always recommended that you conduct thorough research before beginning work and talk to your local authority.

Is It Better To Move Home?

As mentioned earlier, building an extension can be a demanding process and potentially costly, with various expenses and fees to consider throughout. While extensions can add value to most homes, some renovations may not provide the return you're expecting and could even devalue your property. If you're concerned about this, it's worth understanding what to do if a surveyor devalues your home.

Alternatively, moving house is another viable option if you need more living space or specific features, such as a garage. Moving can be a more practical choice if you're not planning to stay in your current home long-term, as it allows you to find a property that better suits your needs without the long-term commitment of extending.

Cost of Moving House

The fees below are based on the costs of buying and the selling costs for a property costing £292,000. Please note all prices vary depending on location, house type and size.

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The main cost you'll face when moving house is the deposit for your new property. On average, a house deposit amounts to approximately £43,800 for a 15% deposit.

In addition to this, you'll need to budget for several other fees. These include the cost of a property survey, which typically starts at around £445*, conveyancing fees for both buying and selling the property, and estate agent fees, which generally range between 1-3% of the property's value. Additionally, the cost of a moving company averages around £1,044*.

Another important consideration is stamp duty, which varies depending on your location in the UK. This is a tax that is applied when purchasing a property above a certain price threshold, so it's crucial to factor this into your overall moving costs.

The Verdict

Moving is a stressful time and uprooting your family from friends and familiar areas could be detrimental in the long term, as well as the difficulty of funding the costs. However, moving within your current local area to a larger property will be easier on your family. Depending on what you're looking for in a new home, it could work out cheaper than extending, or if you're after garden space, moving in the best option.

Save Time and Money on Your Move

There is no set answer to whether it is better to move house or extend on your current property, as it will depend on individual situations. Extending may seem like the easier option, but will still be disruptive to your family’s living and may not be as cost effective in certain regions.

Likewise, moving house will save your current property from turning into a building site but could cost you thousands. If you do decide to move house, make sure to compare removal companies. We'll connect you with up to 6 trusted and verified removal companies in your area.

*Based on the average service costs for Omni Removals users. See how our data works.