Whether you’re an existing or prospective homeowner, it’s always vital to understand the impact home improvements can have on your property value. Understanding which renovations can add value to your home, and therefore generate a greater return should you chose to rent, or sell, is key.
Due to current economic uncertainty, it comes as no surprise that many homeowners are opting to improving their current home instead of moving.
In fact, according to Hiscox, the number of homeowners opting to improve rather than move has increased by 12% over the past 5 years (representing over 4 million UK households).
This inspired housing agents Sellhousefast.uk to investigate which home improvements stand to add the most value to a property.
To achieve this, Sell House Fast took the average price of a UK home, which according to the latest ONS House Price Index comes in at £226,234 (March 2019). Thereafter, calculated the average monetary value per type of renovation or extension, using percentages taken from Hiscox’s ‘Renovation and Extensions report’ which indicates the value increase each renovation could add to a property*.
Unsurprisingly, updating the entire décor of your home can increase the value of your property.
According to the report, a fresh lick of paint all over the house can add up to 3.1%, which when taking into consideration the current average UK property price, translates to more than £7,000; an astronomical figure for a tin of Dulux.
Sell House Fast has highlighted which renovations and improvements add the most value to a property:
Updating the kitchen can add £12,442.87 (5.5%), a new roof adds £7,013.25 (3.1%), the bathroom £5,882.10 (2.6%) and improving the garden up to £3,167.28 (1.4%).
And should homeowners look to take their home renovation project further and add an extension or conversion, this is how much extra value could be added:
A new bedroom can add £25,338.21 (11.2%), a loft conversion and/or kitchen extension can add a further £23,754.57 (10.8%), a basement conversion adds £15,157.68 (6.7%),
a conservatory £13,574.04 (6%) and a new bathroom £12,895.34 (5.7%).
Robby Du Toit, managing director of Sellhousefast, comments:
“Homeowners making the decision to stay put and add, improve and renovate their homes instead of moving, is becoming the new trend for those looking to adapt their property to meet their ever-changing needs and evolving lifestyles. It is logical that many view home renovations as a more economical solution and given the uncertainty of the market due to factors such as Brexit, it certainly seems more beneficial to add value to existing dwellings.”
*Figures based on the average UK home price of £226,234 taken from ONS House Price Index 2019. Using percentages taken from Hiscox’s Renovation and Extensions report in order to calculate average monetary value per renovation.
**Hiscox Renovations and Extensions Report 2018 draws on insight from 1,200 homeowners, 100 UK-wide estate agents and over 400 local council planning permission records.