Home improvements can add up to £40,000 to the value of homes across the UK, according to new research.
Over the last five years, UK homeowners have spent £295bn renovating their homes, with new kitchens, walk-in wardrobes and landscaped gardens offering the best return on investment.
The average spend on home improvements was more than £14,000 and homes with such improvements were on the market for more than 10% of the average asking price.
The majority of people (59%) who made improvements did so to improve the appearance of their home and just over one quarter (28%) did so to increase the value of their property.
However, only 5% made improvements because they were moving house.
If improving your home’s asking price is your priority, it is important to consider the cost of the work compared to the potential value it may add because not every home renovation offers a great return on investment.
To help identify money makers and dodge the money pits, Towergate Insurance have created a calculator which tells you which home improvements could add the most value.
We have entered the current average house price of £226,906 (April 2018).
Here is a countdown of the top ten most profitable home improvements.
1. Add a bathroom suite
5% estimated value increase
Adding an en-suite or additional bathroom to your home can offer a fantastic return on investment.
You can expect to make a £7095 profit based on an average cost of £4250 and an estimated house value increase of £11,345.
2. Build a fireplace
5% estimated value increase
Adding a woodburning stove will not only make your living space extra warm and cosy, but it could also increase the value of your home by 5%.
You can expect to make a £7845 profit based on an average cost of £3500 and an estimated house value increase of £11,345
3. Paint & Decorate
5% estimated value increase
A fresh lick of paint is a highly cost-effective way to add value to your home. If you are looking to sell, neutral colours have the broadest appeal.
You can expect to make an £8495 profit based on an average cost of £2850 and an estimated house value increase of £8495.
4. Update your central heating
5.4% estimated value increase
A modern and reliable central heating system is essential for most homeowners. If your boiler is pushing 15, it’s time to consider replacing it.
You can expect to make a £9028 profit based on an average cost of £3225 and an estimated house value increase of £9368
5. Landscape your garden
7.5% estimated value increase
Buyers do not want to inherit something that is overgrown and difficult to maintain. Landscaped gardens make outdoor spaces much easier to manage.
You can expect to make a £9368 profit based on an average cost of £7650 and an estimated house value increase of £17018
6. Open up your home
6% estimated value increase
Knocking down non-load bearing walls between the kitchen and dining room will open up your space and increase the value of your home by more than £13,000.
You can expect to make an £11,514 profit based on an average cost of £2100 and an estimated house value increase of £13,614.
7. Spruce up the exterior
10% estimated value increase
Consider repainting the external features and rendering and repointing the outside of the house if necessary.
You can expect to make a £13,191 profit based on an average cost of £9500 and an estimated house value increase of £22,691.
8. Convert your loft
15% estimated value increase
Turning your loft into another room such as a bedroom increases floor space and as such the value of your home.
You can expect to make £16,536 based on an average cost of £17,500 and an estimated house value increase of £34,036.
9. Make your home energy efficient
14% estimated value increase
Cavity insulation, solar panels and double glazed windows all help to improve energy efficiency which is popular with buyers.
You can expect to make a £21,047 profit based on an average cost of £10,720 and an estimated house value increase of £31,767
10. Convert your garage
20% estimated value increase
Converting your garage into another room increases the square footage of a home.
You can expect to make a £29,931 profit based on an average cost of £15,450 and an estimated house value increase of £29,931
