Is it worth doing a loft conversion or should I just move house?

When the need for more space becomes a pressing issue, homeowners often grapple with the decision of whether to embark on a conversion of their existing property or making the move to a larger home. Both options have their merits, and a thorough assessment is crucial to determine which path aligns best with your individual needs and financial circumstances.

In this article we delve into the factors that could make a loft conversion a viable alternative to moving, considering the value it can add to your property in comparison to the costs of purchasing a bigger home.

The dilemma: expanding existing space vs. moving to a larger home

As families grow and lifestyles change, the need for additional space becomes increasingly evident. The dilemma arises: should you invest in expanding your current home through a loft conversion or take the leap and move to a larger property? While both options address the need for space, they come with distinct pros and cons.

The loft conversion advantage: adding value and functionality

A loft conversion presents an opportunity to maximize the use of your existing space, transforming an underutilised attic into a functional living area. This can be particularly appealing for homeowners who wish to remain in their local area and remain close to schools, workplaces, and social circles.

One of the most compelling arguments in favour of a loft conversion is the potential increase in property value. Reports from reputable sources, such as the Royal Institution of Chartered Surveyors (RICS), suggest that a well-executed loft conversion can add up to 20% to your property's value. This added value not only has the potential to offset the initial investment to convert the space, but also positions your home more favourably in a competitive market if you do ever decide to sell in future.

In comparison to exterior extensions, which can often be more costly and involve more red tape, it is also possible to do many loft conversions without the need for planning permission as part of your permitted development rights. However, you should always double-check your plans with your local council and you will always need to ensure that your conversion meets building regulations regardless of whether planning permission is needed.

The costs of moving: beyond the purchase price

It is important to remember that moving to a larger home involves not only the purchase price of the new property but also a host of additional expenses. Stamp duty, legal fees, surveys and removal costs all contribute to the financial outlay associated with relocating. These costs can easily amount to tens of thousands of pounds, eroding a significant portion of the budget that could have been directed towards home improvements.

Furthermore, the emotional toll of moving should not be underestimated. Adjusting to a new environment, uprooting children from schools, and establishing new routines can all be challenging aspects of relocating. Not to mention all that packing and unpacking! For homeowners who are content with their current area and the amenities it offers, the prospect of moving may not be as appealing either.

Comparing financial aspects: loft conversion vs. moving

When considering a loft conversion versus moving to a larger home, a direct comparison of the financial implications is essential. A loft conversion involves upfront costs for planning, design and construction. While these costs can vary based on factors such as the type of roof you have, the complexity of the project, and the region in which you live, they are generally more predictable and controllable compared to the costs of purchasing a new home. In 2023, the average cost of a loft conversion is between £50,000 to £70,000 (+VAT) and £60,000 to £100,000 (+VAT) in London.

Moreover, the potential increase in property value resulting from a loft conversion contributes to a long-term financial gain. This gain can counterbalance the initial investment, making the decision financially astute in the long run.

Again, the outlay for buying a larger property will be dependent on the type of property you buy and its location versus the type and location of the property you are selling. However, there are significant price differences between first-time buyer properties (of two bedrooms or less), second-steeper properties (of three bedrooms up to four bedroom semi-detached and terraced properties) and top of the ladder properties (covering the top end of the market from four bed detached houses to all five bed and above properties) according to Rightmove.

Source: Rightmove House Price Index July 2023

Alongside these higher prices, you also need to factor in the additional moving costs mentioned above, plus the costs of any work you may need to do to the property and the implications of a larger mortgage.

Lifestyle enhancement: convenience and comfort

Beyond the financial considerations, creating or buying more living space contributes to a better quality of life. The convenience of having an additional bedroom, bathroom, a home office, or playroom (or all of the above!) can make daily life more comfortable and organised. This improvement in lifestyle is usually the most significant factor for families who are contemplating the option of a loft conversion or upsizing to a bigger property.

Of course, there will be some upheaval during the construction process of a loft conversion, and you need to ensure that you utilise the space well and don’t end up losing more than you gain once you have factored in the space for the staircase to access the loft living space. However, to purchase a larger property within budget is also likely to mean a “fixer upper” property which will need some work to create your dream home, unless you move to a more affordable area.  

The final verdict: assessing your priorities

Ultimately, the decision to pursue a loft conversion or move to a larger home hinges on your individual priorities. If you value your current home, are content with your local area, and seek a cost-effective solution to space constraints, a loft conversion is likely to align well with your needs. The potential increase in property value and the ability to tailor the space to your preferences add to the appeal of this option.

Conversely, if the prospect of a fresh start in a new home is enticing, and you're willing to absorb the costs and potential challenges of moving, then purchasing a larger property might be the right choice for you.

The decision to undertake a loft conversion or move to a bigger home involves a careful consideration of financial, emotional, and practical factors. A well-executed loft conversion offers a compelling solution by adding value to your property, enhancing your living space, and allowing you to remain in your preferred location. When compared to the costs and uncertainties associated with purchasing a larger home, a loft conversion presents a strong case for homeowners who wish to improve their living situation without uprooting their lives. Ultimately, the choice should be driven by your unique circumstances, priorities, and long-term goals.