Despite what you might think about bungalows, their supply does not look set to meet the increasing demand for them. With Britain’s ageing population, more people looking for down-sizing opportunities and a decline in availability, prices for bungalows are rising. New property development has not yet responded to this demand, and it does not look like it will anytime soon. Buyers are also taking advantage of a Bungalow’s huge potential for expansion and conversion, and they are making big returns on their investment by doing so. This has created the perfect storm of an increasing demand that might exceed supply, which could signal perfect conditions for investment.
Before you scoff at the idea of investing in a bungalow, here are three reasons it might be something to consider:
Reason 1: Development of new bungalows does not look like it will meet demand
For the time being, there does not seem to be any indication that development of new properties will meet demand. NHBC’s (National House Building Council) latest report shows that new bungalows represent just 1% of all types of houses being registered. In the report, figures for total new bungalows registered each year have remained consistently low over the past five years, but the overall number of newbuilds has increased by nearly 50% in that same period. With the shortfall in bungalows looking set to continue, it makes sense that their value will persistently rise.
Prices going up and the chance they will become scarcer in the future would make them a great investment opportunity alone. Better yet, they are also proving to be ideal properties to let. Many tenants are looking to bungalows for flexible rental accommodation, which can make bungalows easy to rent out, especially when considering they are increasingly hard to come by. They may not be able to demand the same prices as larger houses, but there might be less chance of your bungalow being left vacant and bringing in no rent.
Reason 2: There’s huge potential to add value to bungalows
Development of new bungalows has been slowing down since the eighties, and many on the market today were built before then. This has opened room for buyers to snap up bungalows in need of a little TLC that are selling well below their potential. Through renovating, converting or building extensions, buyers have been adding significant value to their property.
Bungalows can provide a large range of possibilities for expansion, especially since they are often located on large plots of land. Making use of garden space, you have the option of building outwards and adding extensions or balconies. Of course, planning permission allowing, you could always go upwards with loft conversions or even add an entire second floor as well.
The option of expanding also makes bungalows a suitable option if you are planning for a family or if you need room to grow in the future. Rather than paying straight away for rooms, you do not need, there is a chance to bring down costs without restricting your options.
Reason 3: They can look seriously stylish
Whatever preconceived notion you might have about bungalows, it has been proven that they can look modern and stylish with the right touch. For those looking for the convenience of no stairs and less cleaning, remodeling has breathed new life into the dated perception that bungalows do not have aesthetic appeal. Adding wrap-around terraces, using clever techniques to give the appearance of height, or making full use of an open-plan design are just some of the ways to give bungalows a modern feel. Remember, the interior can be decorated and styled in exactly the same way as a house, and it is possible to look to apartments and flats for inspiration.
We might not be fully ready to usher in the new dawn of stylish bungalows just yet, but it is clear that they can have their own aesthetic appeal, one which is just not possible with houses. Over time, it is more than possible that the expectations for bungalows will change. That is yet to be decided, but we are left wondering, could this bring a new wave of popularity with it too? Surely, it is only a matter of time.