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This is Chubby Wallet. The newsletter that teaches you how to profit from property trends before they go mainstream..

Here's what’s in store..

• Data highlights stable property market

• Home values boosted more by adding space than expensive refurbs

• Short lease extension costs to go down..

LATEST DEVELOPMENTS

LISTINGS OVERVIEW

Data highlights stable market prices

The UK property market just proved the doom-and-gloom headlines wrong—it's not crashing or taking off, it's steadily adjusting to reality, with more homes selling than before COVID and sellers finally dropping their inflated asking prices

The details:

• There are 751,000 homes on the market right now—9% more than the usual average. But 13% of sellers are cutting their prices because buyers aren't falling for overpriced listings anymore.

• The gap between what sellers ask (£401k) and what buyers pay (£359k) has narrowed to 11.7%. It used to be 16-17%, which shows sellers are pricing things properly from the start instead of trying their luck with fantasy numbers.

• Ignore the weekly doom reports—1.09 million sales have completed this year. That's up 4.5% from last year and 12.7% higher than before the pandemic. Sales falling through? Still at a normal 24%, nowhere near the 40% mess during the Liz Truss meltdown.

• London's recovery isn't coming from the luxury end. It's buyers looking for value at £750k-£820k (yes, that counts as "value" in London), showing even the capital is being driven by people focused on what makes sense, not what looks good.

Why It Matters

The scary headlines miss what's actually going on: sales are strong, prices are landing where they should, and things are holding steady. For buyers, this is a chance to negotiate before the window closes. For sellers, the message is simple—price it right or watch it sit.

RENOVATIONS

Home values boosted more by space than refurbs

Homeowners just discovered a brutal truth in Nationwide's latest data, the renovations we actually do (kitchens and bathrooms) barely move the needle on home values, while the ones that pay off big (adding space) get ignored because we're renovating for ourselves, not the market.

The details

• 71% of homeowners renovated kitchens or bathrooms in the last five years, making them the most popular projects by far.

• The market doesn't care about cosmetic upgrades—it pays for space. A loft conversion with a double bedroom and bathroom adds 24% to a typical three-bed house value, while an extra bedroom alone adds 13%.

• Only 7% of people renovate to prep for a sale. Most (54%) just want their homes to look nicer, which explains why we keep choosing projects that feel good over ones that pay off.

Why It Matters

The data exposes a fundamental gap between how we think about our homes and how the market values them. We spend on the renovations that make us happy day-to-day, but if you actually care about ROI, you should be adding square footage, not granite countertops.

REGULATORY UPDATE

LEASEHOLD REFORM

Lease extension costs cuts approved but..

England's leasehold system just cleared its final legal hurdle after the High Court threw out a challenge from major freeholders in October 2025, but leaseholders are stuck in limbo—the law that could slash extension costs by 30-70% is passed but not yet active, creating a dilemma about whether to act now or wait.

The Details:

• You can now serve a lease extension or freehold claim immediately after buying (the 2-year wait is gone), but premiums still use the old expensive formula including marriage value for leases under 80 years.

• The cost-saving provisions, 0.1% ground rent cap, abolition of marriage value, prescribed rates, and freeholders paying their own legal fees—passed the court test but won't kick in until Q4 2025 or Q1 2026 when the government finally publishes the regulations.

• If your lease is under 78 years, many valuers recommend serving a "protective" notice now to freeze the valuation date, preventing costs from rising then withdrawing and re-serving under the new cheaper regime once it's live—but this means paying valuer fees twice.

• A second draft Bill coming later in 2025 will go further: capping existing ground rents, making commonhold the default for new flats, and scrapping forfeiture for debts under £350, but that won't become law until 2026-2027

Why it matters

Leaseholders serving notices now could overpay by tens of thousands because they're still using the old formula, but waiting too long on a short lease means marriage value keeps climbing. The trade-off is stark: act now and pay more, or wait and risk your lease dropping further. The smartest move depends entirely on your lease length and how fast the government actually moves.

That's it for this week folks. Each week we'll cover strategies, updates and insights to help you succeed in real estate. We love this stuff!

If you Have questions or just want to chat, We want to hear it.

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