The UK is a nation of home improvers. There’s always been a good rationale for this since renovating and adding space can increase a property’s market value. By completing home improvements, not only do you get to enjoy your new purpose-designed living space, your investment will often pay you back a large return when the time comes to sell your home.
In general, adding extra square footage is a popular way to make a home work better for its owners, while also adding to the potential resale price of the property. That may mean converting under-used space into liveable space or extending the size of the property.
A recent survey by the National Association of Estate Agents (NAEA) canvassed members to find which home developments delivered the best value. Around 50 per cent said that an extra bedroom, followed by an upgraded kitchen, extra bathroom and conservatory, provided the best return.
We’ve compiled some statistics on the likely investment return for different types of home improvement. Naturally this will vary from property to property and location to location. You can ask an NAEA qualified estate agent to provide a ‘before’ and ‘after’ market value in advance of your project, to be sure your investment in your home will be a wise one.
Six ways to add value to your home
| Loft conversion | 12.5% increase in value of home (GE Money) | Provided your home is suitable then a loft conversion can be one of the simplest and most cost-effective ways to add value to your home. |
| Two storey extension | 12% increase in property value (Nationwide Building Society) | Turning a 2-bed into a 3-bed adds around 12% but there are limits. When there are 5 bedrooms already, extra bedrooms are unlikely to add value. |
| Garage conversion | 10% added to the value of your home (VirginMoney) | It makes good sense to make better use of the space in your home by converting the garage into liveable space. |
| Ground floor extension | 5% increase in the value of the property (Nationwide Building Society) | A single storey extension can dramatically improve usable living space within the home. Extensions can accommodate new kitchens and extra rooms such as a study or music room. |
| Conservatory | 5% added to house price (National Association of Estate Agents)(NAEA) | Where a new conservatory is part of a properly constructed extension it can add up to 15%. |
| New kitchen | 4% greater property value (Royal Institution of Chartered Surveyors) (RICS) | Keep the amount you spend proportionate to the value of the whole house if you want to see a return. |
Pay attention to the ceiling price for property in your area. Whether you live in a 2-bed semi or a 5-bed detached, look at the price for comparable properties which have been redeveloped to a good standard. Whilst you’re at liberty to spend as much as you please, if you want a good return on your investment then it’s important not to overspend. Comparable prices will provide you with an indication of the maximum price your property would be worth once you’ve completed your home improvements. It provides a useful guide when setting your home improvement budget.
If you plan to refurbish your kitchen then bear in mind that a millionaire’s kitchen in a modest terrace doesn’t add value. If you spend 5% or less of the value of your home on your new kitchen then you’re most likely to see a return.
Whilst increasing the size of your home is a popular way to add value, remember that people still like to have a garden. Try to ensure that the extended house and outside space will work in harmony.
Ask Abbey Building Services and Maintenance to guide you through the options for creating space and adding value to your home. Talk to Richard Bamforth at Abbey on 07818 061505 or send an email.