An extension or loft conversion could add as much as 24% to the value of a typical home, new analysis by Nationwide Building Society suggests.
Its research suggests an extra bedroom can potentially add 13% to a typical property’s value, while an extra bathroom may add 4%.
The building society calculated that a 10% increase in the floor area of a typical home could potentially add up to 5% to its value.
Homeowners shouldn’t take these figures as a guarantee, however, as factors such as the location of a home, wider housing market trends and other individual factors will have a bearing on a property’s value.
Andrew Harvey, Nationwide’s senior economist, said the building society used its house price data to look at the factors that affected, or added to the value of homes.
“Location remains key to house values, but other factors, such as the number of bedrooms, are also important to home buyers. Home improvements that increase the size of the property, such as an extension or loft conversion, remain a compelling way to add value,” he said.
Here, Yahoo News lists five improvements that can add the most value to your home – with one property expert saying that the kitchen is the room that can often add the most value.
1. Loft conversion
Loft conversions tend to be one of the most worthwhile home improvements because they maximise available living space, without compromising on other parts of your home, according to construction resource site Designing Buildings.
The website of industry professionals says a newly fitted loft conversion can add up to 20% to the value of your home and is among the most cost-effective options for owners.
That said, “it’s crucial to have a clear understanding of your budget,” it says, as loft conversions can range from £20,000 to £70,000, depending on the type of conversion, the materials, and labour costs.
Loft conversions can provide a decent return on investment for homeowners, figures show. (Alamy)
Online property platform Zoopla gives a slightly more conservative estimate on return on investment, suggesting that creating an additional room in the loft “increases the sale price of the typical home by up to 15%”.
That said, it said the value added to a home could be even more if you add an extra bathroom on the upper level, too.
2. A major extension
“Having more usable space is generally thought to be consistent with better quality accommodation and people appear to be prepared to pay for it,” Nationwide has previously said.
Adding space to create an additional double bedroom can add up to 14% to the value of an existing two-bedroom house, it said.
Explaining why more floorspace is so prized after, Harvey said: “Ultimately of course, the decision to invest in the home is an individual one, taking into account the costs and hassle involved, as well as potential benefits.
“And, for some households, it’s a choice between move or improve. Amongst owner-occupiers considering moving, the most cited reason was for a larger house or flat.”
In its previous 2023 report, Nationwide provided the following guide for those thinking of adding an extra bedroom to their home.
A rough guide on how much value an extra bedroom could add to your home. (Nationwide)
A major extension might cost you more than a simple loft conversion, however, with figures from Checkatrade.com suggesting the average cost of a house extension ranges between £30,000 and £140,000 for a single storey, and £108,000 and £180,000 for two storeys.
3. Energy efficient improvements
Improving your home’s energy performance certificate (EPC) will not only save money on your bills, it is also likely to add value to your home, according to Rightmove.
The property site’s 2023 Greener Homes report suggested that “a property moving from an F to a C rating could increase a property’s value by an average of an additional 15%”. That’s almost £56,000, based on average asking prices at the time.
Moving from D to C would add 3% to a home’s value on average, while upgrading from E to C would add 7%, the report said.
Loft insulations are one of many ways to improve a home’s energy efficiency. (Alamy)
How much such an upgrade will cost you depends on what levels you are moving between and what work needs to be carried out to increase your rating.
Properties with an EPC rating in band D, for example, typically spent £5,500 on the necessary improvements to move to band C, according to estate agents Knight Frank, with this figure almost doubling to over £10,000 on average for properties in bands F and G.
4. New or upgraded kitchen
Zoopla estimates that homeowners can add up to 15% to the value of their property with a new kitchen.
Much depends on how good a job is carried out, with Henry Brook, founder of online renovation platform The Page, writing that boosting functionality, modern design and quality materials are the most important aspects.
“Integrated appliances create a sleek, streamlined look that appeals to most people, while high-end appliances from respected brands like Bosch or Siemens are valuable assets, potentially increasing home value by up to 4-5%,” he said.
Christopher Burton, head of Wimbledon sales at Knight Frank told Yahoo News: “The most important room to focus on is the kitchen. Make it a full-width multi-zoned entertainment area with views and access to the rear garden.
“Push the ceiling as high as possible and flood it with as much light as possible. It’s an error to link it to the front of the house or make it feel like a galley kitchen – these properties are definitely more challenging to sell.
“Also, whenever adding new bedrooms, consider where the bathroom is. It’s now considered an error to have bedrooms without there being a bathroom on the same floor.”
“A second bathroom remains a favourite among homeowners and our research shows that an additional bathroom can add 6% to the value of the average house,” Nationwide said in 2023.
Writing in Livingetc magazine, renovation expert Amy Reeves suggests that even a new ensuite bathroom can add an estimated 5% to the value of your home.
“Buyers see it as a real asset, especially in homes with only one main bathroom. It enhances privacy, streamlines morning routines, and adds a sense of luxury and convenience,” she wrote. “Ultimately, it’s an investment that pays off both in lifestyle and resale terms.”
How much this will cost you will vary, with Reeves suggesting £4,000 to £6,000 for an ensuite. Checkatrade.com puts the average cost of installing a new bathroom at £7,000, rising to upwards of £14,000 for a larger-scale or higher-end project.
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