Profitable Self Build

Posted on March 5, 2011 by Builder Bob There have been 0 comments

Profitable Timber Frame Self Build House

Profitable Self Build

House Prices Up

Even if the 20,0000 or so people who embark on the Self Builder voyage every year don’t really need any encouragement to pursue their Ideal Home Dreams, they are now getting it.

According to Nationwide, average house prices in February increased by 0.3%. That means that on the basis of their figures, the average house price is now only 0.1% less than it was 12 month ago.

Average Price Now Over £163K

This is supported by the Land Registry who also report prices up 0.2%, making the average price paid for property in England and Wales now £163,177.

Good Investment

Although the housing market is still somewhat in the doldrums, this means that those courageous and committed Self Builders who have taken the plunge and got on with the job of building their own new home – or home extension – will have seen all their time and investment pay off.

And this is at a time when money left in banks or building societies is earning hardly anything, if at all.  

Stable Demand …

Low interest rates and stabilisation in labour market has seen no great increase in houses coming onto the market. Yet at the same time underlying demand is increasing.

With many Sellers refusing to cut their asking prices, and with indications that the number of houses being offered for sale is slowing, most self-builders can rest assured that they have made a sound decision.

… or Jump in Demand

Supporting this view, Hometrack see sales boosted by lack of supply. Although there is a limit to which this can support asking prices, they consider that demand has increased by 14.7%.

At the same time Agents recorded an increase in sales agreed during February of 25%. This will lead to a further reduction in the number of homes available for sale.

Hometrack view the reduction in properties on offer over the last 6 months combined with some modest re-pricing as both supporting the progress of sales arranged and stabilising prices.

Fewer Houses Sold

Indeed, the Land Registry also report a fall in the number of transactions, down from 60,898 per month to 57,244 for the year on year August to November quarter average a year ago.

Fewer home sales indicates further underlying potential upward pressure on prices to come.

Along with these modest underlying price improvements, Hometack report that agents are already seeing an increase in sales completed at the asking price of 92.4%, up from 91.9% in January.

Less Time Taken to Sell

February also saw a small fall in the time houses were on the market before achieving a sale. This went down to an average of 10 weeks from January’s 10.2 weeks.

This trend was reflected regionally, with it only taking 8.8 weeks to sell in the South, as against 12.1 weeks in the North.

All-in-All, Self Building is, and looks set to remain, a most profitable pursuit.

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