Are you currently living in a cosy two-bedroom home but feeling the need for a bit more space? Perhaps your family is growing, or you’re simply looking for additional room to accommodate your evolving lifestyle.
Whatever the reason, upsizing from a two-bedroom to a three-bedroom house is a significant decision, and it comes with a variety of factors to consider. In this article, we’ll explore the costs and considerations involved in this transition.
The Cost of Upsizing
According to research conducted by property website OnTheMarket.com in 2019, upgrading from a two-bedroom to a three-bedroom house in England, Scotland, and Wales comes at an average cost of £68,376. This translates to an average increase of 29% in the property’s price. Of course, these numbers can vary significantly depending on your location.
Location Matters: If you’re considering this move to Outer London, be prepared to face the highest additional cost, which was £109,616 in 2019, accounting for a 26% increase. In this region, a two-bedroom house costs £415,208, while a three-bedroom house costs £524,824.
Conversely, the South West sees the largest percentage increase, with a 36% jump in the cost of upgrading from a two-bedroom to a three-bedroom house. In the South West, the price goes from £224,585 for a two-bedroom to £304,444 for a three-bedroom, a difference of £79,859.
Inner London, surprisingly, had the smallest percentage increase at 10%. Here, a three-bedroom house was only 10% more expensive than a two-bedroom. The average cost for a two-bedroom house was £707,424, while a three-bedroom was £779,816.
The North East boasted the smallest uplift in monetary terms, with an additional cost of £30,174. This represents a 21% increase, with a two-bedroom house priced at £144,672 and a three-bedroom at £174,847.
Why the Demand for Three Bedrooms?
The demand for three-bedroom homes is driven by the needs of families in the UK. According to the Office for National Statistics (ONS) data, there are approximately 4.3 million families with two children or more. This demographic seeks larger homes to accommodate their growing families comfortably. Thus, a three-bedroom house becomes a practical choice for those wanting to future-proof their housing.
Real estate experts gain further insights into the dynamics of upsizing from two to three bedrooms:
Richard Greenham, Director of Meller Braggins in Cheshire (North West), stated: “Demand is outstripping supply for three-bedroom homes in the North West region. Two-bedroom period properties are still quite popular; however, three-bedroom homes are more versatile, depending on what is required. Younger buyers coming upmarket tend to want an extra bedroom either for a study or a nursery. Three-bedroom homes are popular with downsizers too, as we recognise older couples wanting to release the equity from bigger properties to fund their retirement.”
Harry Buchanan, Sales Director at Jackson-Stops London, offered insights about the London market: “The low number of two and three-bedroom houses available to buy in Chelsea continues to keep prices relatively buoyant for both property types. With space at a premium, pricing in this area is often guided by square footage, although there are, of course, other factors involved. At the moment, we’re experiencing a slightly higher demand for two-bedroom properties over three beds in the area.”
He also noted that personal factors play a significant role in pricing and that buyers in the cosmopolitan area of London have diverse requirements and motivations.
Considerations for Upsizing
When contemplating the transition from a two-bedroom to a three-bedroom house, several factors should be on your radar:
1. Budgeting: As we’ve seen, the cost of upsizing can vary greatly depending on your location. Carefully assess your budget to determine if this move is financially feasible for you.
2. Space Requirements: Consider your specific space needs. Will the additional bedroom be used as a nursery, a home office, or simply as extra space for guests? Understanding your needs is crucial when searching for the right three-bedroom house.
3. Market Conditions: Keep an eye on the real estate market in your area. Market conditions can influence the availability and pricing of homes, so it’s essential to be informed.
4. Selling Your Current Home: If you currently own a two-bedroom home, you’ll need to think about selling it. Consider the timing and process involved in selling your current property.
5. Mortgage Considerations: Speak with a mortgage advisor to explore financing options for your new home. Ensure you understand the mortgage rates, terms, and down payment requirements.
6. Long-Term Planning: Think about your long-term plans. Are you upsizing for your growing family, or do you anticipate needing extra space for other reasons? Your long-term goals should align with your housing decisions.
7. Location: Besides the cost, think about the location of your potential new home. Is it close to schools, parks, shopping centres, and other amenities that matter to you and your family?
Upsizing from a two-bedroom to a three-bedroom house is a significant step that involves careful planning and consideration. The cost of such a transition can vary significantly depending on where you live, but the demand for larger homes is evident, especially for growing families. To make the move successfully, it’s essential to assess your budget, space requirements, and long-term plans carefully. Additionally, keeping an eye on the real estate market and seeking expert advice can help you navigate this important decision. Whether you’re relocating to the North West or considering a change in the heart of London, the choice to upsize to a three-bedroom house is a significant investment in your family’s future.
At Michael Anthony, we understand the importance of finding the right home to meet your evolving needs. If you’re considering upsizing from a two-bedroom to a three-bedroom house, our experienced team of estate agents can provide expert guidance and help you find the perfect property. Contact us today to start your journey toward a more spacious and comfortable home.