North East homeowners and investors face dilemma...

Homeowners and investors in the North East face the dilemma of “splashing out or cashing in” on their homes, according to a local letting agent.

This comes after data shows the highest percentage of houses in the area selling for their asking price in a decade - but also the impact of home improvements on increasing property prices.

Figures from Nationwide show that homeowners can add 21% to the value of their home by adding a bedroom or having their loft converted, and 12% by building an extension.

These figures could add as much as £51,000 to price of a home in the region and £28,000 to the value of a house in Sunderland alone.

The building society also estimates that turning a two-bedroom semi-detached home into a three-bedroom one will boost its value by 12 percent - a £21,000 boost in Newcastle.

Research from Hometrack meanwhile showed that 97% of sellers are currently achieving the full asking price for their properties, the highest level since 2002.

Founder and Managing Director of KIS Lettings, Ajay Jagota, said: “Deciding whether to cash in on your property or splash out on home improvements is always a tricky choice.

“Right now is clearly a good time to sell your property if you want to achieve your asking price, and negative equity appears to have all but vanished, but with the right improvements your property could easily be worth even more.

“The right answer often changes from area to area or even street to street and the key is getting the most relevant regional information – to make the most informed decision you can you need to look local.

“For example, there are reports that the housing market in Scotland is currently being affected by uncertainty caused by the coming independence referendum as people worry about jobs moving south in the event of a yes vote. National figures don’t tell you a thing about regional issues like that.

“If you have the capital to invest straight away, extending your property prior to selling could really pay off, but make sure you get the right advice first,” he concluded.