Buyers 'may turn to renovations'

Existing homeowners may look to renovations and conversions to boost the value of their home as house prices begin to slowdown, according to one firm's 2008 predictions.

SmartNewHomes.com has said that prices will rise by between two and four per cent next year, but suggested that home improvements could become increasingly popular in the short-term.

The website has also fallen in line with recent market sentiments by suggesting that interest rates will be cut by 0.5 per cent in 2008.

"Given the upheaval and the slowing of the market […] homeowners may take short term measures such as home improvements and extend their homes. Building extensions or converting rooms and garages will be ways that homeowners will boost the value of their homes, ready for when the market picks up again," advised SmartNewHomes.com managing director David Bexon.

Making a home fully carbon neutral can cost as much as £9,000 upfront, though these costs will ultimately be made back in the long-run, Alliance & Leicester reported last week.

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