Archive for September, 2009

As Ikea’s renowned, ubiquitous and arguably unsightly Billy Bookcase edges towards its thirtieth birthday next month, thoughts have turned to the nature of the study in this day and age. Of course, the current digital era is essentially all about the computer and how it has affected everyday life.

Indeed, the computer was once considered a newfangled device that was intended solely for nerds and geeks before it became a luxury that many people simply did not require. However, during the last decade or so, computers have become a way of life for most people. The evolution of the Internet has played a huge part in this, whilst many computers have been set up in a home office or for purposes of leisure and social communication.

Accordingly, a question mark has been placed over the role of the home study. Once a place of relaxation, education and quiet comfort, the traditional study would comprise a solid wood desk, leather bound executive chair and rows of book shelves. However, with the exception of professional studies, the need for books is nowhere near as strong as it was twenty years ago. Indeed, most information can now be accessed on-line and the average computer is capable of storing the equivalent of millions of books. Therefore, is it time to do away with the traditional study altogether?

Unreservedly, the answer is no. Book shelves remain the lifeblood of such rooms and there are many fantastic items of furniture available to buy for the study. However, those planning a spot of home improvement are advised to optimise their study space by substituting traditional desks for computer workstations and modernising book shelves and cases. Indeed, the modern study would ideally comprise a combination storage unit, such as one from Ikea’s superb BESTÅ and LIATORP ranges, which is able to house a number of books, DVDs and, most importantly, a large flat screen television.

According to figures released on Thursday, the UK housing market remains in a state of flux. Indeed, the British Bankers’ Association (BBA) announced that an annual rise in mortgage approvals, which are up 81% in August from the same month last year, has been exaggerated by extreme market conditions in 2008. Additionally, the HM Revenue and Customs (HMRC) announced that the number of homes sold in August of this year has fallen by 4,000 to 83,000 from July, which is the first time this year that a drop has been recorded. These contrasting statistics prove little more than what home-owners and property developers already know.

Indeed, the housing market is essentially still in a slump and it will no doubt remain there until the British economy has sufficiently recovered from the recession. Therefore, home-owners are unlikely to acknowledge the freshly published statistics with any sense of optimism, as it is more than clear that house prices and sales are nowhere near former highs. However, the BBA also announced that remortgage loan applications have fallen by 47% in the year leading up to August. Again, whilst this may suggest that home-owners and property developers are holding steady in a volatile market until conditions improve, the statistics are also muddied by those relating to unsecured lending in general.

In other words, painting an accurate picture of the housing market in the UK as it exists today is not a straightforward task by any stretch of the imagination. Perhaps the only point of substance that can be gleaned from the statistics is that the housing market is experiencing a moderate level of stimulation in terms of buying and selling, which can only be a good thing for those who are undertaking home improvements in the hope of a rejuvenated market to come.

Small home improvement jobs will typically be undertaken by an avid DIY enthusiast or handyman, whilst larger tasks such as a loft conversion will require the services of a skilled tradesman. Of course, conforming to building regulations will usually require the services of professional builders, boiler installers and joiners, so medium to large home improvement jobs will involve searching for a team of suitably qualified and experienced tradesmen. However, this is not always as easy as it might seem and there are also other factors to consider when hiring builders to carry out work on a property.

Indeed, the history of home improvement is littered with tales of rogue builders, dissatisfied customers and generally nightmarish situations. On Monday, for instance, the roof of a family home in Derbyshire was partially demolished by a builder following a dispute over the payment of an extension built five years earlier. Unfortunately, it is clear that the potential for conflict will almost always exist between builder and customer. Thus, what can be done to reduce the chances of a home improvement project turning into a complete disaster?

The answer is simple: communication. Indeed, when embarking on a home improvement task it is essential first to shop around for reliable, experienced and skilled tradesmen. Word of mouth advertising is key to finding the right people for a particular project, so if it is possible, speak to friends, family members and neighbours about the builders which they have employed in the past. The next step after obtaining quotes is to discuss the building plans in depth with the tradesmen in order to agree on costs, labour and deadlines. Then, draw up all the details in a written contract and ensure that there is room for some margin of error, such as in the budget. Finally, ensure that the builders are regularly lubricated with warm cups of tea.

Although a garage conversion enables home-owners and developers the chance to free up valuable space in the home, it may not appeal to everyone. Indeed, those who value their wheels more than their living space will probably want to keep their motorised pride and joy safely tucked away in the garage.

Of course, this assumes that the garage provides enough space for the car, as many new-build properties would have difficulty accommodating an OAP’s electric buggy let alone a large family estate car. In short, the decision to convert a garage will rest largely on preference or necessity.

However, does converting a garage actually increase the value of the home? The more conservative of estimates, which puts the average cost of a garage conversion at around £10,000, suggests that a typical three bedroom family home worth £200K would increase in value by around 10%. Thus, the net profit that might be expected from a typical garage conversion would be in the region of £10,000.

Naturally, such a figure can only be accurately ascertained on a case by case basis. Nevertheless, in broad terms, it is important to consider a number of factors that may affect a garage conversion in terms of overall financial value. First, the size of the garage is crucial in determining both the conversion cost and potential for new living space. Indeed, a double garage may convert to an attractive reception room or gymnasium. However, that figure of £10,000 is very much a ballpark sum, so it is important to obtain a reliable quote before contemplating a conversion. It is also necessary to check building regulations and planning permissions before getting started, whilst it is essential that the property deeds are examined for restrictive covenants.

Kingfisher, which is the parent company of popular nationwide DIY goods supplier, B&Q, announced yesterday that it has enjoyed increased profits in the six month period ending 1st August 2009. In fact, the retail group has published half-year pre-tax profits of just over £288m, which represents an annual increase of around 34% or £74m.

Clearly, any business that has enjoyed massive profits at the height of a recession is operating in a market that has been largely unaffected by the economic downturn. In this case, Kingfisher’s increased profits further evidence claims that home-owners and property developers have opted for home improvements as a means of surviving a depressed housing market.

Furthermore, according to one Kingfisher source, the increase in profits are a clear indication of “renewed consumer interest” in DIY, which is not only seen as a way to improve existing living conditions but also one that can help improve the potential value of a home. However, whilst Kingfisher’s profits have also been stimulated by French home improvement chain, Castorama, there are other reasons that could explain the success besides increased consumer DIY activity. Indeed, the closure of MFI, formerly one of B&Q’s chief rivals in the home improvement sector, has no doubt pushed trade in Kingfisher’s direction.

Moreover, Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, told the BBC that Kingfisher’s “fine performance” was partly due to “seasonally good weather… and the revamping of its offerings”. Part of this revamping was introduced a year ago when B&Q implemented a scheme to cut empty shelf space by 25%, increase its product range substantially and to significantly cut operation costs – a far cry from B&Q’s board restructuring of 2005 that was brought about by decreased sales.

Although most furniture retail outfits offer good deals for consumers, particularly in respect to buying in bulk or via credit agreements, a new trend has emerged among homeowners looking for discount furnishings. Indeed, the in vogue method of buying bedroom furniture is no longer on the high street or at popular nationwide retail giants.

In fact, auctions are now seen as one of the more attractive options for homeowners looking to furnish their properties. Whilst offering exceptional bargains, auctions can also be a great deal of fun and the whole experience can be exhilarating. Furthermore, auctions offer homeowners a range of furnishings that perhaps cannot be found in any traditional retail outfit, as the goods on offer will come from a variety of backgrounds and will comprise all styles, shapes and sizes.

Moreover, the range of auctioned furnishings will include those that are decidedly antiquated in addition to more modern items, especially those that may have been collected as a result of bankruptcies.

Although many homeowners might feel uncomfortable about buying furniture at auctions, it has become a perfectly acceptable practice and one that has been driven recently by the recession. Indeed, if an auction presents a great deal then what does it matter if a chair has been sitting around in an attic for fifteen years or if its previous owner could not afford to meet repayments? Ultimately, the crucial aspects to consider are price and quality.

Thus, auctions represent a low budget, high interest medium through which homeowners can improve the furnishings in their homes. Furthermore, auctions are also good for the environment in the sense that they recycle old – but usually in good condition – items that would otherwise be destined for the scrapheap.

Homeowners and property developers were given encouraging signs recently that the UK’s housing market was recovering. Whilst this remains to be the case in respect to increased mortgage lending and a quarterly increase in national average house prices, there are concerns over what this actually means for the market.

It is all too easy for property owners to look at these signs with unjustified optimism. The UK is only just beginning to emerge from a deep and damaging recession that hit most of the country by surprise.

Although inflation is no longer suffering a negative trend, the consumer price index does not tell the whole story and it is clear with rising unemployment and corporate closures the UK is not yet out of the woods – at least not economically speaking. Thus, recent improvements in the housing market, which may prompt more homeowners to resume investing in their homes, could prove to be misleading in practical terms.

The Ernst & Young Item Club supports this fear by claiming, despite the promising signs of late, property values will take at least another five years to return to their 2007 peaks. In fact, the Item Club has attributed the recent increase of mortgage lending and average house prices to a small percentage of wealthy buyers. More specifically, buyers whose cash wealth is considerably higher than the credit health of average buyers. If the market is being stimulated by a select number of cash happy new homeowners, it is reasonable to suggest that house prices and mortgage lending might slip during the next quarter. Nevertheless, homeowners are advised to push on with substantial home improvement plans in order to invest in the future.

It is natural for homeowners to want to develop or improve their existing properties. It is well known that a garage conversion, conservatory or some other major extension or building work can add value to a home, which is especially important in the current housing market.

It is also true that many homeowners simply want to enjoy a better quality of life, so home improvements are often carried out to fix some problem or another. For instance, converting a loft into an extra bedroom can not only increase the sale price of a property but it also enables a growing family to live in the home comfortably.

Those who have undertaken home improvements or are planning to in the near future will no doubt want to be aware of a Government plan to raise Council Tax on such properties. Indeed, earlier this year the current Labour Government instructed the Valuation Office Agency to compile a database of all homes in England and Wales. Each home will be given one of a hundred dwelling house codes that will form the basis of a new Council Tax revaluation. The problem for property owners is that the Valuation Office Agency has allegedly instructed its inspectors to employ detective work to identify homes that can be moved into a higher tax bracket.

Trainee inspectors are thought to have been issued with a training handbook detailing certain ways in which home improvements can be sniffed out. Furthermore, inspectors must consider whether homes are subject to partial mountain views, spacious driveways and hardwood conservatories among other points. Assuming Labour were to win the next general election, the chances are improved properties will face higher tax premiums.

The steady recovery of the UK housing market has been publicised recently. Indeed, as the nation’s economy slowly emerges from a recession that has hit almost every country in the developed world, it is only right homeowners and developers can look forward to the future with optimism. Thus, there is likely to be a rise in home improvements over the winter as homeowners prepare their properties for a healthier market.

Many such improvements will include building extensions, as these will add natural value to the home. However, creating space in a property can also offer a more immediate benefit.

A development such as a loft conversion, which will create the necessary space for a new bedroom in a property, can be rented out to lodgers to make quick cash for homeowners. In fact, until such a time as house prices have risen to affordable levels, the income generated by lodgers could not only pay off the cost of the extension but also provide an additional profit.

Moreover, taking in lodgers is no longer a social taboo among homeowners, who may have once considered the move a sign of desperation. On the contrary, those who advertise a portion of their home to lodgers are typically considered to be sensible business people who are merely attempting to maximise the value of their home.

Furthermore, the UK Government’s Rent-A-Room scheme will allow up to £4,250 per year to be generated by renting to lodgers before tax is payable. This offers a considerable incentive to homeowners who wish to make extra cash on their property, which could range from £10 to £70 per night based on the size of the room and location of the house.

Some 75,000 burglaries are reported to the police in England and Wales annually, which is a statistic that has been steadily increasing recently. The economic downturn and increased rate of unemployment have no doubt contributed to what is an already unpleasant crime that causes emotional, psychological and financial suffering to its many innocent victims.

Of course, burglary is a crime that has plagued societies throughout history and there is very little that can be done to change this in future. Nevertheless, there are a number of ways in which homeowners can help to protect their homes against these unwanted guests.

The key home improvements to be considered include the installation of burglar alarms and the reinforcement of double glazing and doors, which are, quite obviously, the major entry points to the home. Therefore, it is not at all sensible to leave these areas insecure.

Unfortunately, however, many homeowners and property developers especially tend not to give much thought to this crucial area of the home. In fact, many doors are made of cheap materials to save on costs whilst many windows will not comprise key locks, which are essential in order to reduce the risk of their being prised open.

In respect to doors, ideally these should be made from metal or solid wood and feature several Grade 1 locks including a heavy-duty deadbolt. The door fitting itself should comprise a heavy-duty four-screw strike plate that penetrates at least several inches into the sturdy door frame. These core components are necessary for reducing the risk of the locks being picked or the door itself being kicked in. Finally, fit a peephole in the door that provides good visibility in all directions.