When it comes to upgrading or upsizing the property they live in, many homeowners choose to put their property on the market and buy a new home altogether. However, vast numbers of homeowners are now choosing to renovate their homes instead.
According to NAEA Propertymark, UK homeowners have invested a huge £41bn on home improvements over the last five years, which equates to £1875 each. Furthermore, nearly three quarters of all property owners confirmed that they have carried out some form of renovation in the past five years with 10% of those stating that they did so because the cost of moving was too high. While the UK property market is still performing strongly, the growth in house prices has surpassed wage increases which makes it difficult and costly for homeowners to upsize.
The most popular improvement project was redecorating with 73% of homes getting a fresh lick of paint. More than half of households had their gardens landscaped, more than one third invested in new flooring and 31% opted for a new bathroom.
Even in the buy-to-let market, the number of landlords remortgaging in order to carry out property improvements has tripled since 2016. Evidentially, both homeowners and landlords want to improve not move.
Here are some improvements homeowners and landlords can make to add value to their property:
1. Increase floor space
Figures from Nationwide have suggested that a 10% increase in floor space can increase the value of a home by 5%. In an average home, a second bathroom can add a further 5% to the value of the property, whilst adding a third double bedroom to a two-bed house can increase the value another 11%.
2. Converting a cellar
Cellar conversions can add 30% to the value of a property – and you don’t need planning permission! If you don’t already have a cellar, building one can double the square footage of your property.
3. Adding parking
In an area where parking is a premium asset, you could pave over the front garden. You may need planning permission and it could set you back up to £20,000 but a study by Canopies UK revealed that extra parking adds an average of £50,000 to the property price.
4. Building an extension or convering a loft
An extension or loft conversion is a great way to add extra space to an existing property. It could also boost the property value by 14%. In a three-bedroom, one-bathroom house, this could be as much as 22%. A conservatory, which may cost anywhere from £5000 to £30,000 can also add 7% to the value of a property.
5. Adding an extra bedroom
Increasing the size of a property to add an additional bedroom will add 11% to the property value. Landlords who want to maximise their rental returns by increasing the capacity of their rental properties or who want to convert a property to a HMO may find this home improvement particularly advantageous. But before you begin a project, do some research to check that there’s a demand for rental property in the area.
6. Gaining Planning Permission
Gaining planning permission for further works can increase a property value by an average of 10%.
Sources:
https://www.canopiesuk.co.uk/wp-content/uploads/canopies-add-value-house-content.png
https://www.nationwide.co.uk/guides/news/all-news/2016/04/what-adds-value-to-your-home
