Whether you’re thinking of selling or just want to make the most of your home, certain projects are more valuable than others.
Here’s how the projects that add the most value to your property and leave you in profit, and the ones that will leave you out of pocket in the long run.
What adds value to a house
Almost any significant changes you make to your home will add value. However, while your property price might increase, that doesn’t mean you’ll get a return on your investment.
For example, adding an extra bedroom costs, on average, £68,000 but only adds £6,000 onto the property value. That leaves you £62,000 out of pocket.
Practical improvements or ‘green’ improvements are generally the best way to add value to your property and give you a return on investment.
Updating your boiler, adding central heating, insulating your loft or walls and adding a security system all increase your return. Each of these improvements cost less than £5,000 and can add 2%-4% onto your property value and leave you with profit.
Bigger projects like a new bathroom or kitchen add value and are more likely to help the property sell quicker and at asking price, but you won’t make the investment back.
One of the biggest investments and returns you can get is converting your cellar or converting your loft. A cellar conversion costs roughly only a grand but can add £20k onto the value of your property. Similarly, an attic conversion costs around £15,000 but can add £20k (or roughly 10%) to the value of your property.
So the main takeaway is to make the most of the space you already have.
Home improvements that don’t add value
New flooring is an aesthetic change that doesn’t add any value to your property at all. As with a new kitchen and bathroom, it might make your property more sellable but it won’t increase the value.
Wine cellars are a very expensive way to not add any value at all to your property. The average wine cellar costs £47,000 to create...and adds nothing to your property value. It might make you feel fancy and be an interesting talking point, but it’s not a practical addition to your property.
Another luxurious addition for very little return is a home cinema. Costing on average £10,000 to create, it only adds 1% onto the value of your property inevitably losing you money.
Solar panels are one of the few home improvements that will actually lose you money. As a nation, we’re all about appearances and solar panels still aren’t aesthetically pleasing. However, what value you might lose (roughly 2%) on your property value, you’ll eventually make back in energy bills. Plus, you’re doing your bit for the environment.
What renovations add value to your home?
Let’s break it down.
How much value does a driveway add to a house?
Off-street parking adds roughly 3% onto your property value and on average costs just over £3,000 to create.
More than half of all buyers need a driveway or dedicated parking space. So not only will a driveway or garage add to your property value, but it’ll also make your property more sellable.
Does a conservatory add value?
A conservatory doesn’t add as much value as you think when you take into account the initial investment vs return.
On average a conservatory costs roughly £7,500 to design and build but it only adds 4% to your property value. So on a property worth £200,000, that’s a profit of only £500.
How much value does a garage add to a house?
Having a garage that serves as a garage is a boon to your property price. Garages are often used as an extra space for bulky essentials like washing machines and fridges, so if you have a door that connects the garage to your home, even better.
Research shows that having a garage can add up to 5% onto the value of your property.
Does a new kitchen add value to a house?
It’s a common misconception, but a new kitchen won’t add value to your home.
On average it costs £8,000 for a new kitchen with a return of roughly 2%. So on a £200,000 property, tha’ts a loss of £4,000.
However an outdated kitchen can put off almost a quarter of buyers and another quarter of buyers think a new kitchen is a must have. We know that’s contrasting opinons, but selling a property isn’t always a straightforward process!
Do new windows add value to your home?
Double glazing, on average adds roughly 4% onto the value of your property. That’s a modest increase but the money you save in energy bills will make the initial investment more than worthwhile.
Does a garage conversion add value to a house?
No! A garage conversion won’t add value to your home. Garages are a practical storage space (especially if the property doesn’t have a loft or cellar) and are a useful place to keep bulky white goods like washing machines or chest freezers.
As electric cars become more popular, off-road parking for charging points will become in demand.
Do loft conversions add value to your house?
Loft conversions are one of the best ways you can add value to your property. Turning it into a functioning room costs £15,000 but can add as much as 10% to your property value.
So for a £200,000 house, a loft conversion could add £20,000 to the value, leaving you with a £5,000 profit.
Does a new roof add value to your house?
A new roof adds a small amount of value to your house. On average it costs roughly £5,500 for a new roof (depending on the size of the property) and can add around £6k to the value of your property. So the return is small.
However if your roof needs essential repairs, these could be picked up on in the property survey which can then lead to more financial negotiations. So weigh up whether it’s worth the investment or not.
Does a home office add value?
The answer to this all depends on how you create the home office. If you have a spare room that you just turn into an office, this won’t affect the value of your property.
However if you convert your loft oor cellar into an office, that will add value.
But if you choose to get an extension or build an extra bedroom, that will add value but you won’t profit or recoup the costs.
How much will an extension add to my house?
Extensions are tricky.
Over time, they may add value to your property as the market value increases. However, they don’t add the instant value homeowners think they do.
On average, an extension costs in the region of £50k+ with a 15% value increase. So on a £200k property, a £50,000 extension will leave you £20k out of pocket.
Instead of investing in an extension, get the planning permission for one. This gives buyers the option to do what they want.
Does an en suite add value to your home?
An ensuite can add up to 5% to the value of your home.
However, if you don’t already have the room to create an ensuite, you’ll have to get an extension, making it unlikely you’ll get the return.
Does a bath add value to a house?
A bath won’t add value but not having one may put off some buyers. If you have the kind of property that people expect to have a bath, i.e. a family home, then having one will help meet expectations.
Does a deck add value to your home?
A garden makeover on average costs £3,500 and only increases the value by 1% so it’s unlikely you’ll make back the money.
It’s unclear whether a deck alone adds value but either way, a nice and well mainted garden is a persuasive selling point.
Does a new bathroom add value to a house?
Like with a new kitchen, a new bathroom adds value but you won’t make a profit. On average a new bathroom costs £3,700 and adds 1% onto the value.
But while you might not profit, outdated bathrooms can put off buyers. Homes with more than one toilet though appeal to more than half of buyers.
How much does an extra bedroom add to home value?
Again, the way you create the extra bedroom is what will determine the value and profit.
A loft conversion bedroom (and maybe even an ensuite) will add the most value for a reasonable profit.
Do gardens add value to your home?
Research suggests that having a garden can add up to 20% to the value of your property.
Having any form of outdoor is beneficial to the property and if it’s well maintained, that’s an attractive selling point for buyers.
Does a balcony add home value?
A balcony or terrace can add up to 10% onto your property value. However, this is likely an expensive project that you will probably be unable to profit from.
How much does new flooring add to home value?
Nothing! New flooring doesn’t add any value to your property whatsoever.
However, new (or at least flooring in good condition) will make your home more sellable and means you’re more likely to achieve your asking price.
So the key rules for adding value to your property are to start by working with what you’ve got. Loft and cellar conversions are the way forward for maximising space without altering the exterior of the property.
Curious about how much your property is worth? Get in touch with the team to find out how much your home is worth.