Move or Stay? How Home Improvements Could Add Value To Your Home

Written on 25 February 2025 by Nicholas Mendes

The UK property market continues to evolve in 2025, with house prices remaining resilient despite economic uncertainties. As of January 2025, the average UK house price reached £299,138, reflecting a 0.7% increase from the previous month. England’s average house price now stands at £306,000, while Wales and Scotland have seen annual increases of 3.0% and 4.7%, respectively.

With rising living costs and fluctuating interest rates, many homeowners are weighing up whether to move or invest in improving their current home. For those not looking to relocate immediately, home renovations can be a smart way to enhance property value while improving quality of life.

How Much Value Could Home Improvements Add?

Home improvements can significantly boost property value, but the return on investment depends on factors such as location, build quality, and market conditions. Below are some of the most valuable home upgrades and their estimated impact on property value:

1. Garage Conversion or Addition

Transforming a garage into a living space such as a home gym, office, or lounge - or constructing a new garage can increase property value by up to 15%. Garage conversions usually fall under permitted development rights, making them a cost-effective and less restrictive option for homeowners.

2. Adding a Conservatory

A well-designed conservatory that blends with the existing home can add between 10% to 15% to property value. The return on investment depends on factors such as insulation, build quality, and how well the new space integrates with the home.

3. Loft Conversion

Converting an unused loft into an extra bedroom, office, or living space can add around 15% to the value of a home. If an en-suite bathroom is included, the increase could be even higher. In high-demand urban areas where ground space is limited, loft conversions are a popular alternative to rear extensions. However, planning permissions, structural assessments, and stair access must be considered.

4. Additional Bathroom

Adding an extra bathroom, downstairs toilet, or en-suite can boost property value by 3-5%. While a small bathroom addition might not make a drastic difference, a well-designed en-suite in the master bedroom can add up to 5%.

5. Open-Plan Living Spaces

Removing non-structural walls to create an open-plan kitchen and living area can make homes feel larger and more modern. This modification could add around 10% to property value, but a full extension typically offers an even greater return. If removing walls, a structural engineer should be consulted to ensure compliance with safety regulations.

6. Kitchen Renovation

Kitchens remain a key selling point in homes, and upgrading this space can add between 10-15% to property value.The most valuable kitchen upgrades include:

Open-plan designs with kitchen islands
Energy-efficient appliances and smart lighting
High-end countertops and modern storage solutions

Other Ways to Add Value to Your Home

If major renovations aren’t an option, smaller projects can still improve property value and buyer appeal:

Curb Appeal & Garden Enhancements

Improving the exterior appearance of a home can increase its value by up to 10%. Popular enhancements include:

Landscaping front and back gardens
Repainting doors, window frames, and fences
Installing a new driveway or patio
Upgrading outdoor lighting

Outdoor Structures

With hybrid and remote working now common, garden offices, summer houses, or covered outdoor entertaining areas have become highly desirable. Adding functional outdoor space can increase property value by 5-8%, especially in areas where indoor space is limited.

Applying for Planning Permission

Even if you don’t intend to extend your home, securing planning permission for potential developments can increase the value of your property by 5-10%. Buyers often pay a premium for homes with approved plans, as it removes uncertainty about future expansion possibilities.

Things to Consider Before Renovating

Before committing to home improvements, homeowners should carefully assess the costs, benefits, and potential return on investment.

Obtain multiple quotes – Compare contractor prices to ensure competitive rates and realistic completion timelines
Check planning & permitted development rules – some projects may require planning permission, which can affect costs and completion times
Consider market trends – Certain improvements add more value in specific areas—for example, loft conversions are more valuable in cities, while conservatories are popular in suburban areas
Review financing options – if you need extra funds for renovations, remortgaging, further advances, or secured loans may be suitable options