Have spiralling costs taken the shine off renovation projects?

This week some friends asked me to have a look at a country house they are interested in purchasing to advise with regards to development potential, pitfalls and likely costs. The house is what is often described in estate agent parlance as ‘a gem’. Think a Country Life Magazine handsome wisteria clad Georgian façade with full-height sash windows, beautiful mature gardens with rooks cawing in the background and lots of outbuildings. You get the picture – a house that will get buyers salivating, create a bidding war and sell for a huge premium. Except it hasn’t sold, despite the recent bullish market and plenty of viewings.

When the builder looked at it he was sucking his teeth as soon as he exited his vehicle. The roof would need to come off, re-wiring, plumbing, reconfiguring the layout, refurbishing the sash windows etc, etc, etc. The back of fag packet calculation, prior to a formal quote, came in at almost as much as the house was on for. This was before even considering renovating or converting the extensive outbuildings, and allowing for a sensible contingency that these projects always require.

It wasn’t altogether a surprise, as the cost of most building materials have doubled since the start of the pandemic and labour costs have also gone up substantially. With all the likely expenditure added up, and the not so easy challenge of making a period house energy efficient, it created a very long pause for thought. Especially combined with upward pressure on interest rates and the extraordinary rise in the cost of living. Furthermore, Council Tax is also heading north and the upper bands G and H are likely to be in the local government sights as cash cows.

Due to global pressures, the cost of heating, lighting and maintaining houses is likely to remain very high for the longer term. Challenges are even greater for for listed buildings, restricted by out of date policies more concerned with preservation than adapting to the 21st Century. I believe there is a risk of more houses falling into serious dilapidation thanks to the ill-thought-out decision to scrap VAT relief for listed building repairs. Both English Heritage and Local Authority Planning and Conservation Departments need to focus on how to allow listed buildings to evolve, otherwise they risk becoming energy inefficient white elephants.

Despite changing vogues, period country houses will always have their admirers and demand will undoubtedly remain. There are so many benefits:- the stunning locations, land, space and amazing potential. However, this platform has moved up a few notches for buyers. Country houses are now the preserve for those with very, very deep pockets no longer the merely affluent. In the future values of country houses may well be counter-balanced by their astronomical maintenance and running costs.