Move or Stay? How Home Improvements Could Add Value To Your Home
Written on 15 September 2022 by
The property market has soared since 2021. Pent up demand and the Stamp Duty holiday contribute, alongside low rates, made a perfect cocktail resulting in the highest number of transactions in 17 years. The Land Registry reported that prices rose by 12.8% year on year in May, meaning the average price property reached £283,496.
Prices continued to increase albeit the rate of increasing is slowing, due to the lack of stock and high demand more recently. But with the cost of inflation showing no signs of slowing and with the expectations to reach 13.3% in October, and a Bank of England Base Rate expected to continue to increase to bring inflations to the target of 2%.
There are early indications that demand is starting to ease, cost of living, rate rises, wage stagflation, as well as possible signs of the UK heading into a recession, many homeowners will be questioning what to do.
How we view and live in our homes has never been a more topical question. With the idea of any potentially moves now on hold for the next few years, could improving the home be a better investment.
What Are Your Options and What Could This Mean for Your Home?
By building a garage or turning a garage into living space (i.e., a gym or lounge) you could expect to see an 15% increase in the property value and these costs are requirements and less restrictive as this would fit under permitted development.
Adding a Conservatory could add 10-15%, depending on the finish and views etc. Similar to extending with an open plan kitchen, you would expect to add some serious value.
Adding a loft conversion could expect to add 15%, maybe more if there’s space for an en-suite. With any loft conversations you would need to consider planning, architect etc. London for example has several flat roofs in certain areas and going into the foundations (below street level) is also a possibility.
Another bathroom (even if it just has a toilet in it) – typically adds 3-5%, homeowners will need to consider the costs and if this would be worthwhile. Imagine trying to reorganise a space to fit an extra toilet, but if the grander scheme of things if you’re planning an extension, it could be worthwhile to reduce a small area of living space to facilitate as part of the build. Ensuites add 5% to the property value, depending on the property, you wouldn’t want to comprise on space within the floorplans.
Making a living area open plan (knock a kitchen/living room wall through) – could potentially add 10%. I have gone for a reserved figure here, to act as a comparison extending the property would add more value.
New kitchen could add 10%-15% to the property value. When you consider the home/living environment, household are looking for a central space for communal use – adding a lovely new kitchen could do wonders for the zoom calls – but honestly a new kitchen will add value as this adds a new dimension for socialising, work, and living room. Find out more via our house extension calculator.
Alternative Ways to Improve Your Home
Curb Appeal – Doing the front garden / making the rear garden an extra space 10%
Summer Houses / Outside Office – for those with limited space inside could look outside to add value – 5-8%
Apply for Planning Permission – selling with architects plans & planning permission, without having to do the build could add 5-10%. Prospective owners aren’t buying with the thought or worry of not getting PP but knowing there is PP for bigger square footage could be an attractive option for no work for potential buyers.
Getting quotes, understanding the costs as well as time involved will be vital in ensuring any work carried out is cost effective.
At John Charcol we have a number of tools to help support your home improvement plans and can discuss your options when looking to raise money for home improvements. If you’d like to get in touch with one of our expert advisers, call us today on 0330 433 2927 or enquire online.
Related Articles
- What Home Improvements Add the Most Value to Your Home – and How Can You Pay for Them?
- Are You Planning to Move, Improve or Stay Put and Enjoy Your Home in 2018?
- Extending or renovating your home? Top tips for homeowners planning to improve their home
- 6 Tips When Applying for Planning Permission to Extend Your Home
Category: Nicholas Mendes
