Rightmove has branched out of the house sales and rental market and into house extensions with a new tool designed to help people estimate the labour cost of enlarging their home, rather than buying a new one.
Although some agents might see it as encouraging the ‘improve not move’ trend that has been increasing in recent years as Stamp Duty and removal costs have escalated, Rightmove says the tool is designed to help home owners work out how much value an extension might add to their property, and average local costs to build.
It is set up to estimate costs and added-value for the three most common sizes of extension; 15m2, 25m2 and 35m2.
The Rightmove tool, which is being launched this morning, uses the data from the portal’s nine million EPC records to work out the average size of a home in any given area which is then, with the average asking price locally, used to work out price per square metre.
The portal says the average price per square metre in England and Wales is £2,954 or £274.43p per square foot.
Also, the differences in price for a square metre of property, which is barely big enough for an adult to sit down in, vary hugely from £1,417 in Sunderland to £10,427 in the W postcode of West London.
“Homeowners need to think about why they are doing an extension,” says Rightmove’s Direct of Data Services, Tim Bannister (left).
“If it’s to add value to a home then it’s worth bearing in mind that local markets all differ, as does the price that people will be able to pay for a property, so there will be times where adding an extension will not increase the home’s value by more than its cost.”