If there’s a recession, high inflation etc should I stop my plans for house extension?

[Mydoghealsmyheart]

I really don’t understand about inflation, recession, high interest rates etc but I’m wondering if I should pause my plans for building plans for an extension, new kitchen etc? I know that building costs, materials etc will cost more so I don’t know if I should stop our project before it’s begun. We have very limited funds and I am so worried that we start something and then cannot afford to continue.

*tight

Just spoke to an agent about a property I was interested in buying and needed a refurb. He said refurb properties are taking longer to shift as costs have doubled. If money is tight, I’d hold off.

Definitely. It's already happening in some parts of the UK where builders are seeing lot of cancellations. This will help to offset some of the price increases on materials as well.

Ahh this is such a timely thread as we're in a similar situation. Been planning our extension for the last 18 months or longer and are now awaiting two quotes with the view of starting work this autumn. We have the money sat in the bank, so I'm curious about what some of you are saying about money in savings losing value... is that because prices are rising and so the value of your money decreases as a result? I was under the impression that build prices might come down as a result of a recession as construction businesses will be fighting over work due to more people feeling the squeeze and halting projects? Am I missing something really obvious here? If my assumption is right then surely maybe waiting a few more months until the construction market adjusts to the economic situation is the way to go (that's assuming you have the money sat in the bank rather than borrowing of course)?

We're in Cornwall, so builders down here are still mega busy as there are so many people from outside of Cornwall building their second (or third or fourth) homes/mega mansions by the coast, so wondering if the construction industry will suffer as much down here as in a location less popular with second home owners... gahhh, so many unknowns, sorry probably not a helpful ramble at all!

The construction industry can't grind to a halt. There's already talk of smaller building firms going into administration where they haven't been able to meet loan repayments and I think that's only the tip of the iceberg.

Try asking around your local architects - if they're seeing things quieten now in terms of fewer projects starting and fewer going in for planning etc, then that will have a knock on effect further down the line. As least you'll know one way or another.

We went ahead with our building work as the outcome has provided us with an additional bedroom, bathroom, office and utility room. The alternative was to move and the buyers market is hideous at the moment.
The building work has cost cost us just a bit more in what we would've spent on stamp duty, estate agent fees, removal men and legal fees but we would've made our money back in adding value to the house.
We're due to remortgage next year and we've improved our LTV percentage too.
Huge bonus is that we haven't had to deal with open days or estate agents!

If money in the bank is devaluing as prices rise… then why are house prices going to fall?

@ArseInTheCoOpWindow I couldn't agree more.

I'm 50 and bought my first home when I was 21 and I've never known anything as serious as this financially speaking.

We had a 30 year low inflation bull run. The world was very different before then. We are entering a new period that is going to be very different to what we have ever known (at least if born after 1950). We are not preparing our kids enough for what is to come. In the meantime idiots like Liz Truss want to stoke the national debt. The amount to be paid back is already £80,000 per UK household. Our interest bill is £80 billion per annum. Overdrawn and too much reliance placed on house ownership.

triggernometry Episode on „Economic disaster is already here“. Life has been good - time to adjust to the new way of things though.

Prepare our kids for what?

We don’t know what’s going to happen. How can we prepare them?The war could end next week.

Truss is a liability but she’s not here for ever and ever. Good times will roll again.

We’re in the same boat. Moneys in the bank and the builder is due to start mid Sept. I think we’re going to go ahead as if materials costs increase further we can’t afford it. I think we’ll get the shell done but hold off on the actual kitchen to see if there are any reductions there.

@recessionssuck123 that’s interesting. Have they given you likely start dates?

I must remember where this thread is and find it again in a few years' time. Good times is a subjective statement. The next 25 years are going to be very different. Being 'western' will be a disadvantage and costly.

Why so gloomy? It might not happen. The country had debts following WW2. It was 3 days away from famine in 1948 when it went to America for money.

The mid 50’s to late 60’s we’re fine. Dip in the 70’s and then on the up in the 80’s. The debt was only paid back in 2006. It didn’t stop good stuff happening.

China will become more dominant, but it doesn’t have to be the end of the world. These shitbags won’t be in power for ever.

I inherited a chunk of money a few years back enough to pay off our mortgage and probably do a loft extension - about 6 months pre-COVID we were quoted for the extension and it was about the amount I had left over after mortgage. We put it off as we had a big family celebration that was going to be costly and time consuming...

Now I think the extension will cost more than we have left, and I'm thinking that we should probably drop it. We don't need the extra space, though it'd be nice - it was more a case of the roof needed and overhaul and we could put in rooms while doing it, but thinking ahead there's a list of other things that need doing, and with the the money we have left, we could do all those nicely, namely:

• Fixing the roof


• Repainting/fixing the exterior


• Replacing the windows - they were 10 years old when we moved in 8 years ago, and had a 20-year warranty, plus they are UPvC and we'd like to replace with wood. Also, with different types of window we could solve the problem with our existing bedroom whereby the light gets in during summer mornings and wakes up my husband.


• Getting a new kitchen in next 5 years - our Ikea kitchen is not ageing well after 5 years - if we don't do the loft, we could replace it with a better quality one in a few years' time.

Overall, I think I'd rather keep the money for that - I've told DH we need a conversation this weekend and I think he'll be disappointed about the loft, but if new windows can solve the problem with our current bedroom (we would have moved to the loft) then he might be Ok with it.

@Echobelly your windows and kitchen don't even sound that old.
You can get blackout blinds to stop sun getting in. We are not diy people but installed Blocblinds ourselves and they are great.
May save you some money!

My sister has a quote pew covid for 35k. It is now 95k. Would not pay it!

@whereamu - can they work on upvc windows?

I wouldn't get wood windows. Horrendous to maintain. Even the really good quality ones wood will swell and move in winter and they never shut as well after they have gone.

My parents paid a lot for wood and now after 10'years they have gone back to plastic

Just to confirm, council tax does not increase whilst you are living in it due to building works. It is flagged for re-evaluation when the property is sold and the new owners pay for the increase. It did used to be in rates days that it would increase which meant people were more reluctant to improve their homes.

Wooden windows are a silly choice unless you have no other. Upvc is so good now that there is no need. We have upvc sash windows and everyone always comments on his gorgeous they are and is shocked when they hear they’re upvc.

@Echobelly yes they work on any windows.
If you Google them their website has great fitting videos.
Also look at 'perfect fit blinds' as an alternative.
There are a few highly rated complete blackout blind options that may help you and save you some money .

We are due to start a single storey extension in a couple of weeks. We have a very small kitchen and so will add value to our property. If we don’t do it now we never will.

Thanks for window advice - I will double check our window installation date, as I do have the paperwork we got when I moved in, but I think they're getting towards end of life IIRC. I'll look at improvements of Upvc, as if it's better these days maybe DH can be convinced, though he does have a history of choosing the impractical material!