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Thursday, 21 January 2010

According to research by the Halifax a few years ago, the happiest type of home in Britain is the bungalow, which is rated by its occupants as an average of 8.15 out of 10 on a 'happiness' scale.And with this choice of dwellings contining to out-perform houses and flats in the property market, what options does a property developer have to 'add value' to a bungalow?

What is a Bungalow?

In the UK, the definition of a Bungalow is a single story building although in the US and Canada, the word, Bungalow can refer to other types of housing.

Bungalows became popular between the Wars, and very large numbers were built, particularly in coastal resorts with many villages and seaside resorts have large estates of bungalows, usually occupied by retired people. The typical 1930s bungalow is square in plan, with 1960s ones more likely to be oblong. Nearly all are brick built.

Advantages of Bungalows

The most obvious advantage of bungalows is that they are very convenient for the homeowner in that all living areas are on a single story and there are no stairs. So, bungalows are well suited to those who are mobility impaired, e.g. the elderly or those in wheelchairs. They also tend to have good driveways and large gardens.

Bungalows generally offer more privacy than two-story houses. With bungalows, strategically planted trees and shrubs are usually sufficient to block the view of neighbours. Whereas, with two-story houses, the extra height requires much taller trees to accomplish the same, and this may not be practical.

As far as developing is concerned, bungalows are easily modified and extended and they hold their value well. Often they are detached properties in sizeable plots which could be knocked down and replaced with two storey building(s).

The other important consideration affecting the relative attractiveness of bungalows is the changing demographic of our population. Whilst the stock of bungalows has remained more or less constant over past 10 years at around 1.2m, the number of people aged 70 or over in the UK has risenand this group is also expected to see further growth in coming years. Where bungalows remain popular with this group, demand will undoubtedly exceed supply.

On the downside, bungalows are more expensive to construct than two story houses because a larger foundation and roof area is required for the same living area. Hence many housebuilders don't construct them - or at best will build only a small number within a project. The larger foundation will often translate into larger plot size requirements which is why bungalows are typically fully detached from other houses and do not share a common foundation or party wall. There's also a element of snobbery about them and they aren't always the first choice for anyone under the age of 50.

So, when is a bungalow not a bungalow?

When it is a dormer bungalow like the one I visited whilst filming in Plymouth. This was a semi-detached property, with 3 bedrooms - one on the ground floor and the other two occupying the loft space.

There are differant types of dormer - a full dormer is where the conversion takes the roof outwards and the new living space can stretch from one side of the house to the other and from the ridge board (highest point in loft) right out to the eaves. This essentially, at its maximum extends the new floor to occupy the entire footprint of the property. Large dormer extensions generally require flat roofs as pitched roofs would tend to exceed the height of the existing roof.

A dormer loft conversion is where the loft space is turned into living accommodation and dormer windows are put into the roof to bring in light.

Converting a standard Bunglow into a dormer

Whether it is a full dormer or loft conversion that is being considered, dormers almost always require planning permission since it structurally and visually alters the property. You will also need to comply with building regulations.

When extending the loft to construct a dormer it is essential that a roof's structural stability and strength is not damaged during the building process.

If you are considering a dormer conversion the process will require:

Loft and house survey and production of floor plans
Planning and Buildings Regulations Approval
Building Inspectors Approval
The actual Construction

The steps involved will be to:

1. Firstly you will need to have the property surveyed by a professional and building plans drawn up.

2. Then timber roof supports are installed above and below the existing roof and reinforced steel joists (RSJs) span the base and top of the dormer frame to support the weight of the ceiling and window

3. Next vertical timbers are attached onto existing roof rafters (either side of the roof aperture) to create the dormer sides (dormer walls or cheeks).

4. Since full dormers generally have flat roofs, horizontal timbers run the width of the dormer and join uprights.

5. Insulating cladding is then applied to the frame to make the structure water and weatherproof . Dormer cheeks are often clad with roofing materials such as tile or lead so the extension remains 'in keeping' with existing roof style.

6. Insulating board is intalled to the dormer frame. This maximizes the lofts heat retention capacity.

7. The dormer window is installed.

8. Plaster-boarding of internal wall of dormer over frame and insulation boards. Plastering and skimming - double application of plaster to ready the surface for a final skim and internal decoration.

9. Finally,dormer conversion is decorated with paint or wall paper if required.

To Convert or Not?

Clearly, converting a standard bungalow to a dormer is going to be costly - depending on the extent to which you will be extending the accommodation and so if investment is your aim, then you will need to weigh up the costs of conversion against the eventual resale value of the property. If you own a small bungalow in a popular or traditionally 'expensive' area, then the cost could be well justified. According to the Nationwide, detached bungalows can fetch up to 20% more than a semi-detached house in the same area.

To some buyers one of the major attractions of a bungalow is the opportunity they offer for extending your home, creating both space and profits. But if you do go up into the loft, converting your home into either a chalet bungalow (with Velux windows), or a domer bungalow, you may lose some of the appeal of the single storey.

POSTED BY: AT 11:53 am | Permalink | E-mail this

Wednesday, 06 January 2010

Property Market Predictions for 2010

House Prices will plummet in 2010. Whoops, sorry, I meant house prices will rocket in 2010. Hang on a minute, sorry, No. I mean..That got your attention didn't it! If there's one thing that doesn't change in the property market, it's our fervent desire to try to gauge what the coming months and years have in store for property prices. Its not surprising since our houses are normally the single biggest investment assets that we own. Changes in their value, not only have a direct affect on our personal finances but can alter our overall feeling of financial affluence or otherwise.

So, what do the coming 12 months have in store?

I've just been on BBC Radio 4's Moneybox Programme alongside 4 other property experts and we were all asked that very same question. The show started with them playing clips of the predictions we made in December 2008 when we looked forward to the year that has just gone. Many of the doom-laden predictions from that time simply haven't materialised. One of my fellow broadcasters had predicted a 50% drop in house prices - overall we agreed that things certainly had not been as bad as many had forecast, although finance remained hard to secure, demand for property remained strong with shortages in some areas driving up prices. Developers continued to keep projects on hold for much of the year, again limiting supply. In the final quarter of 2009, there was a steady stream of positive news from the property sale world and overall the year ended with prices around what they had been at the start.

So, what of 2010? The range of predictions from my Radio co-presenters was from drops of 15% to moderate increases of 2-3% which were suggested by the representative from the Royal Institute of Chartered Surveyors. I myself, predicted that prices would be generally level over the coming 12 months, but that some areas and styles of property would be much better placed than others. No matter what the market conditions are, there will always be certain areas and styles of property which are more immune to wild fluctuations than others, and the key to successful investment is to know where and what these properties are.

Which properties perform better in an uncertain market

If the market is slowing, then all the principles of sensible property investing become even more important. The old rule of ?location, location, location' becomes critical. Even during uncertain times, people still need or want to buy property - you just have to make sure that yours stands out to get the best possible price. At the end of the day, well presented, attractive properties that are well located will always be in demand, so if you have purchased well, you will still be able to sell at a fair price.

There is no property that will remain untouched by a general slowdown in the property market, but there are sectors which will be affected more than others. The riskier properties are:

? City centre flats and apartments in large developments where there are hundreds of almost identical properties.

? Properties that are in run down neighbourhoods or have difficult access

? Properties that lack a crucial element for the market that they are aimed at i.e. family homes that have not parking or garden.

? Large family homes with a �1million to �3million price tag.

So, the properties which are likely to perform better in a slow market are:

? Individual properties that are one-off's or have particular character and features

? Properties that are located within regeneration zones

? Homes worth more than �3million. Research suggests that these tend to buck the trend as buyers are wealthy overseas investors.

? Properties in traditionally popular areas

? First time buyer level houses - such as terraced properties. Even if there is a % reduction, if the property is valued less it will be less of a slip in absolute terms.

Clearly, there are other factors which will affect the property market in 2010. Its not clear yet what affect the re-introduction of stamp duty on lower priced properties will have and of course, any increase in bank base rates could put downward pressure on prices. However, I think most people would still agree that medium to long term property continues to be a safe haven for your money. Much of the market in 2009 was driven by cash buyers using money from banks and building society accounts that were generating virtually no interest and this will continue over the coming 12 months. I really don't think that the doom mongering predictions will come true. At the end of the day, we live on an island where there is more demand for property than there are properties for sale, and this simple economic equation should give you confidence for the year to come and beyond.

POSTED BY: AT 11:58 am | Permalink | E-mail this

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