2010: The Year to Self-build? - Expert Opinions

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Michael Holmes
TV Presenter and Property Author
2010 will see continuing price rises in the mid and top ends of the property market and this will help self-builders and renovators gain confidence to take on a project — and perhaps more importantly, give lenders the confidence to improve the availability of funding.

Price rises are likely to bring more plots onto the market, too — especially if interest rates begin to rise towards the late summer/early autumn, as predicted by many economists. The lower end of the property market will remain flat for some time yet, due to high levels of unemployment, and may well dip again when rates start to rise and affordability becomes more of an issue for those who are out of work.

Much vaunted falls in material prices are finally actually happening, and I expect there will continue to be good value on both labour and material costs throughout 2010 as the slowdown continues to squeeze the real economy, and companies cut prices to survive.

All in all, I believe that 2010 is going to be a good year to buy at or near the bottom of the property market and build through the upturn, taking advantage of relatively low build costs. The best opportunities will be for those who have the money to grab a bargain quickly and sufficient funds to operate in a restricted lending market.

Hugo Tugman
Founder of Architect Your Home (architect-yourhome.com, 0800 849 8505)
The focus this year will be on quality rather than quantity. Those looking to build are increasingly looking at carefully planned spaces that aim to meet their needs rather than just maximise the square footage that can be squeezed into a space. Balance and flow within a property are key considerations and a better result can be achieved with a well-designed small space than a poorly designed large space.

With the housing market still relatively flat, renovators are looking for ever more imaginative ways to create more space. A garage is often a semi-redundant space that can be better used as additional living accommodation. More people will be dividing it up to create separate rooms such as a home office and children’s play area, and often there is also the opportunity to extend on top of the garage to create more bedrooms or an additional bathroom.

The trend for open plan living is building momentum as our lives demand more social spaces. As the recession has kicked in we have seen many more people entertaining in the home rather than going out, which is also helping to drive this trend. There are many elements to consider in order to create a successful open plan space, but done in the right way, it can be a very sociable and practical way to live.

Kate Faulkner
Managing Director of Design on Property (designsonproperty.co.uk)
The property market has proved extremely volatile over the last couple of years, but finally seems to be settling down. If you have been dreaming about self-building and have a relatively secure income, then now is definitely the time. Plots are aplenty and developers are unlikely to compete for them at the start of the year, so you should have more choice. If you are trying to find a renovation project, that’ll prove trickier so you’ll have to work hard to seek a good-value property, especially if you are hoping to make a profit. Spring should bring more properties onto the market.

Beverley Pemberton
Head of Design at Design and Materials (designandmaterials.uk.com)
The impact of the down - turn on housebuilders has created exciting opportunities. For the first time in over a decade land prices are down, as is the cost of buying an existing property for replacement or refurbish ment. The cost of building has also fallen and the icing on the cake is the low cost of borrowing. Most experts agree that the self-builder taking the longer-term view has never had it so good. How long these conditions will last is difficult to judge but I wouldn’t expect any dramatic change in the foreseeable future. If you start now you can have Christmas dinner 2010 in your new home!

Brian Berry
Director of External Affairs at the FMB (fmb.org.uk, 0800 152 522)
2010 will be a challenging year for builders but selfbuilders and renovators expecting labour prices to have come down will be disappointed, as good builders, who are always in demand, will largely still be able to command the same prices as before. What you will find, however, is that builders will be more available. Avoid the temptation to hire on the cheap, as in the recession more people are looking for shortcuts and there are a lot of cowboy builders who have taken this as an opportunity to set up a business.

David Murphy
Director of Sales & Marketing, Buildstore Financial Services (buildstore.co.uk, 0845 223 4888)
Mortgage finance for everyone – not just selfbuilders and renovators – will remain restricted, as lenders seek to redress their balance sheets. Finance will become harder to find by going direct to a lender or to a general mortgage broker, as what little money some lenders are looking to lend to self-builders and renovators will be channelled through specialist mortgage brokers. In 2010, many lenders will no longer do further advances, making the need to get your costs and contingency right before starting the project absolutely vital.

Sarah Beeny
TV Presenter and Entrepreneur
Renovating for profit and renovating to make a home to live in are two very different things. If you are creating a ‘home’, then now is as good a time as any, especially if you’re trading up — as you can sell and buy for less, so you are in a much better position.

You can still renovate for profit — you just need to make sure that the figures stack up. The same rules apply as before the recession. Always work out margins by today’s figures, and what the resale values are now, not what you predict they could be.

If you have already renovated and spent more than the house is now worth, then, to be honest, there’s not a lot you can do. Your options are to either sell it for less than you paid, or to keep it. Those who bought in 2005 will find that the figures aren’t that different now, but those who bought at the top of the market in 2007-8 are potentially facing a loss. In 2010, I think the housing market will be much the same as it is now. A few rises and drops, but not much change.

Sarah recently set up a website Tepilo, which allows you to take independent control of buying or selling your home — with no charges or commission. It has been online for three months, and there are around 5,000 properties currently listed. tepilo.com.

Tim Pollard
Head of Sustainability at Wolseley (wolseleysbc.co.uk)
The current economic situation has certainly put pressure on budgets but ironically, as people take a closer look at their costs, they are beginning to realise the impact that dynamically rising energy costs will have in the coming years.

There are many exciting developments coming to market to empower self-builders and renovators in the next few months. Some are new technologies, many are developments in existing technologies and some will become financially attractive because of changes in Government policy and regulations, including Feed-in Tariffs (FiTs).

Air-to-water heat pumps are expected to make significant market gains in the next 12 months, while the first domestic combined heat and power (CHP) device is likely to be available from April onwards. CHP is the process of delivering both electrical power and useful heat from a single source. The Baxi Ecogen is essentially a gas boiler, similar in size to a normal gas boiler, which generates electricity for use in the home whilst providing heating and hot water. The Ecogen unit uses a Free Piston Sterling Engine which generates 1kW of electricity per hour, while providing 24kW of thermal output. It has been developed to operate virtually noise and vibration free, and is more than 90% efficient.

Peter M Keogh
Technical Manager at Custom Homes (customhomes.co.uk)
The SIPs (structural insulated panels) side of our business has seen big growth over the last year as they have taken a larger market share. SIPs across the construction industry have grown to such strengths that we now have our own Association, UKSIPS (uksips.org). We are now even finding that architects are coming to us for training on SIPs as they see this as something that they need to be specifying. With the further tightening of Part L next year, with lower Uvalues, increased airtightness and less thermal bridging required, SIPs are going to be in more demand.

Julia Kendell
Interior Designer and TV Presenter (juliakendell.co.uk)
There is an increasing awareness of quality in fixtures and furnishings. Whilst budgeting is still a priority for most, consumers are becoming ever savvy in their homes, seeking out great bargains and understanding how to combine investment pieces with the massproduced. Metallics are massive news for the year to come, particularly combinations of copper, gold, pewter and silver used across lighting, furniture, wallcoverings and accessories. This year’s glamour and sparkle will take its influences from the ’50s to ’70s but with a very current edge.

Stephen McOwan
Head of Property Sales and Acquisitions at George F White (georgefwhite.co.uk
It’s been a tough market, but I think there’s a consensus that we’ve hit bottom now, so people will feel more comfortable that they can do their sums with greater confidence. I don’t see a significant rise in prices until 2011, and then it will be limited as once the initial pool of buyers have been satisfied things will slow down. I think this is a very good time to buy a plot or renovation project. It’s a stable market and the flexibility that sellers are offering now will disappear quickly when the market recovers.

Alan Hughes
Vice Principal of the Interior Design Faculty at Inchbald School of Design (inchbald.co.uk)
Everyone is still attached to opening up spaces in their homes, but the issues facing people now are how to ‘close down’ these expanses in an attempt to create cosier areas. I don’t think the minimalist movement is as strong now. There is more scope for variety. It’s not all white plastered walls: there is more contrast with materials. People are using much more imagination and the phase of imitating hotels died in early 2009. There will be a lot of variety in 2010, with people looking at a mix of things rather than one overall style.

Further reading:

• 2010: The Year to Self-build?
• All About Self-build
• Voice your opinion about the future of self-build in the Homebuilding Discussion Forum