Whether you’re looking to sell your home, hoping to raise the rents on your buy-to-let property or just add to your home equity for down the line, there are all sorts of things you can do to add value to your home.
One of the difficult things about trying to raise the value of your house is that it often requires substantial upfront investment with no guarantee that you’ll be able to recoup the cost down the line.
Fortunately, some research conducted last year by property consultancy Move with Us offers a bit of insight into the expected value add of various home improvements. And some of them might not cost as much as you think.
To make things a little easier, we’re going to split our guide on ways to add value to your home into two. The first post, the one you’re currently reading, will deal with substantial changes that stand to increase the value of your property by 5-10% (or even more).
Add A Conservatory
A conservatory is a great addition to a home for several different reasons. First off, it creates more space… or rather cannibalises some of the space in your garden. But, since the UK gets an average of 133 days of rain per year, that’s probably a fair trade-off.
It also makes the room it’s connected to feel brighter and more airy. But perhaps the most enticing thing about a conservatory is that it encourages people viewing your home to imagine themselves sat in it on a rainy Sunday reading the paper.
Just like a caravan, a conservatory has a certain charm that encourages a slower, more relaxed pace of living. Add a cup of tea into the mix, and you’ll find most Brits powerless to resist the idea.
With an estimated cost of £5-10,000, it’s not cheap. But Move with Us findings indicate that a conservatory can add 5% to your home’s value.
Fit An Extra Bathroom
My house has a bathroom that I never use. I was thinking about turning into another storage cupboard, until I learnt that an additional bathroom can add 6% to the value of your home.
Now I’m leaving everything exactly where it is. Adding a new bathroom can cost you between £2,000 and £6,000 depending on how much plumbing needs to be done, the cost of fixtures etc.
Add An Extension
You knew we were going to cover this one eventually. If you want to make your house worth more money, the most obvious solution is to build more house. It’s not easy – you might need planning permission, you’ll have to find reputable builders to take on the job and there could be months of disruption – and it doesn’t come cheap, costing around £1,200 per square metre.
But, if you’ve ever seen an episode of Double Your House for Half the Money with Sarah Beeny (bit of a guilty pleasure in my house…), you’ll already know that a good extension can send the value of a property skyrocketing.
Convert Your Loft
If you don’t have the room to add a traditional extension and don’t fancy a conservatory, you could always convert that space in your loft into something a bit more useful than somewhere to store the Christmas tree or all your suitcases.
With tons more storage space and the possibility of adding an extra bedroom or some Velux windows for stargazing, it’s difficult to see the downside of a loft conversion.
Well, the price tag of between £15,000 and £40,000 certainly qualifies, but Move with Us reckon that it could add upwards to 10% to the value of your home.
Install A New Kitchen
We hate to be the ones to break it to you, but Formica countertops and lime green kitchens are out. But installing a new kitchen doesn’t need to cost the earth; some chic, minimal cabinet doors and a shabby chic table can instantly refresh a kitchen.
A new kitchen adds just shy of 5% to the value of your home, provided you decorate appropriately according to its current value, and it’s arguably the most important room in a house so it’s definitely not a job to cut corners on.
If you’re taking out a loan or remortgaging to undertake these improvements, it’s important to consider whether or not they’re really necessary. Read up on properties in the area that are comparable to your own and those that are comparable to what your home would be like after a big remodel.
Unless the difference between those two numbers warrants a significant investment on your part, maybe you’d be better off sticking with some smaller scale improvements. And we’ll have a few of those for you in the next post.