Making this one change to your home could add ‘nearly a quarter of value’ to your property, experts say
There is one home improvement that could make the value of your house ‘soar’, according to experts.
Nationwide Building Society’s new analysis suggests that an extension or loft conversion could potentially increase the value of a typical home by as much as 24 percent.
Adding an extra bedroom could potentially boost a property’s value by 13 percent, while an additional bathroom may contribute a 4 percent increase, according to the research.
A Nationwide survey revealed that kitchen and bathroom renovations were the most popular improvements made by homeowners in the past five years.
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The society estimates that a 10 percent increase in a typical home’s floor area could potentially add 5 percent to its value.
However, individual circumstances will differ, and factors such as a home’s location, broader housing market trends, and the additional floor space gained from any extensions will influence a property’s value.
Homeowners must also consider the cost of any renovation when determining how much value it might add.
Among all homeowners who have renovated in the last five years, the average expenditure was around £52,000, rising to £97,000 among homeowners aged 25 to 34 – likely reflecting more significant upgrades undertaken by this younger age group.
Andrew Harvey, Nationwide’s senior economist, stated: “We’ve used our house price data to look at the factors that affect the values of homes as well as the potential to add value.
“While we can’t identify the value associated with kitchen and bathroom renovations, we are able to explore the impact of more substantial projects, particularly those which increase the size of the property.
“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 added: “Homeowners that add a loft conversion or extension, incorporating a large double bedroom and bathroom, can add as much as 24 percent to the value of a three-bedroom, one-bathroom house.
“Our analysis suggests that, providing the room is useable, this can be a good way to increase the value of a property.”
The research discovered that amongst property owners who have carried out renovations in recent years, roughly a third (34 percent) implemented eco-friendly upgrades, with more than half (56 percent) in this category installing solar panels.
Mr Harvey added: “Younger homeowners appear to be most interested in greening their homes, with over two-thirds (69 percent) of those aged 25 to 34 who had renovated in the last five years making green improvements.
“Older homeowners (aged 55 or above) were least likely to have made green improvements (at 18%), with bathroom renovation being the most popular amongst this demographic (68 percent of those who had made improvements opted for this).
“Looking at other popular home improvements, 39 percent of homeowners who had renovated added an outbuilding, such as a shed or entertainment space, while 23 percent added a conservatory to their property. In terms of larger scale projects, 24% of those who had made improvements opted for a loft conversion, while 21 percent had a single-storey extension built.
Andrew continued: “The most popular reason for renovating was to make the property look nicer (54 percent cited this as a reason) while 35 percent were looking to boost the value of their property, with the latter being the most important factor for younger homeowners.
“Thirty two per cent of those surveyed made improvements to modernise the property to make it habitable, while 26 percent were looking to add more space. Interestingly, just 7 percent were renovating in preparation for a sale.”
The research also revealed that most homeowners are delighted with the outcomes, with only 4 percent expressing regret about renovating their home.
The most frequent reasons cited by homeowners for dissatisfaction with completed work were excessive costs and results failing to meet expectations.
The research was conducted by Censuswide amongst 2,000 homeowners in October.
Mary-Lou Press, president of NAEA (National Association of Estate Agents) Propertymark, said homeowners need to consider regulations relating to loft conversions.
She further stated: “Additional considerations to be aware of also include if your property is listed or sits within a potential conservation area, so it is always vital to fully check with relevant planning departments before undertaking any alterations.”
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