Whether you're wanting to be savvy with home improvements or dipping your toes into property development, understanding how to add value to your home is crucial. A quick search online sees that tips for adding value are easy to find. However, much of the content online is 'hear say' content that lacks figures and isn't backed by expert input.
In February 2024 we asked residential property experts how to add value to your home in the UK. Experts ranged from estate agents to property investors and this article provides a summary of their thoughts on the most value adding projects:
Quick Summary
Add a large bedroom (↑20% to house price)
Our experts agree that adding a large bedroom would add the most value to a house since the number of bedrooms is a key factor in property values. Their estimate was that the addition of a large bedroom would add approx. 20% to the average UK house price.
The cheapest way to achieve this is to convert existing space. For example using a garage or loft conversion. If you're having to build an extension then you'll be looking at £2,000-£3,000 per square metre so make sure the value added makes the build costs worthwhile!
“Some loft conversions offer the opportunity of adding two new bedrooms and a bathroom which can bring an impressive return on investment should you wish to sell.”
“If you do a loft or garage conversion, it's important that the space is converted properly and you're not just adding a bed in there. Most lofts and garages aren't made to be a living space and may need work done to retain heat or keep out other elements.”
Create an open plan kitchen dining area (↑10-20%)
The allure of open plan kitchen dining areas has surged, reflecting a growing trend that caters to both the aesthetic and functional demands of contemporary living. They're embraced for their ability to create a seamless flow between cooking and socialising. Open plan kitchen diners not only offer a practical solution for the modern lifestyle but also promise an attractive return on investment. Our experts say, if done right, there's potential to add 10-20% to the value of your property.
“Creating the space by adding a rear single-story extension will be more valuable than using the existing foot print e.g by knocking through an existing wall into a dining room.”
“Bringing more natural light into the kitchen area is a key way to boost value with an open-plan kitchen diner.”
Sell with planning permission (↑10-20%)
Obtaining planning permission before a sale can be a good strategic move to add value. This approach capitalises on the demand for homes that come with the potential for expansion. The added value depends on the scale of the proposed changes and the locations building regulations but our experts estimate that the strategy can increase market value by 10-20%.
“Permission for substantial extensions or permission to build in an area that has notoriously strict planning restrictions will obviously have a much higher impact on property values than permission for relatively small extensions.”
“Planning permission uplift will vary wildly depending on the nature of the planning approval. A single-story rear extension is less valuable than planning for another property on the land or the conversion of a large property into flats, for example.”
Kitchen renovation (↑10%)
Recognised as the heart of the home, the kitchen is not just a place for preparing meals but a central hub. An outdated kitchen can significantly detract from a home's overall impression, which makes renovations a popular investment. Our experts agreed that a kitchen renovation has the potential to add around 10% to the property value, but that the impact is based on the scale and quality of the work.
“The higher the quality of the renovation and components used, the more potential monetary value can be added. The location and local property values also play a role in determining how much a kitchen renovation can add to a home's worth. In expensive housing markets like London and the Southeast, kitchen upgrades tend to add more monetary value compared to less costly areas.”
“This obviously depends on how good the original kitchen was! It also depends on the budget spend on the new kitchen. Spending £75k on a bespoke, high-end kitchen in a £250k terraced house is likely to be a losing proposition. Any kitchen renovation should be in keeping with the ceiling value of the property and in-line with the target buyers expectations.”
“The amount the renovation adds to a home will entirely depend on the style of kitchen renovation, and ultimately the amount of money you put into a renovation. Having new and updated appliances and white goods will increase the value of the home not only due to the updated technology and quality, but because it will become a better investment for potential buyers as newer appliances will last longer.”
Bathroom renovation (↑10%)
Bathroom renovations are a popular choice for homeowners aiming to enhance the functionality and aesthetics of their homes. While the allure of a freshly upgraded bathroom can captivate potential buyers, the actual increase in property value hinges on several critical factors, including the condition of the existing bathroom and the scale and quality of the renovation. Our experts suggest that, on average, a well-executed bathroom renovation can boost a home's value by approximately 10%.
“Spec and size matters: A separate shower enclosure is best, but not at the expense of removing the bath. Again, it is easy to overspend and negate the value added.”
“If you have a relatively new bathroom that's just looking a little tired, you might find it's more cost-effective to touch up grouting and silicone and give the walls a lick of paint.”
Add an en-suite (↑10%)
While the exact increase in property value can vary, our experts generally agree that a well-planned en-suite can add approx. 10% to a home's market worth. Adding an en-suite to the master bedroom is particularly valuable where your target demographic is young families. However, it's crucial to weigh the benefits against potential downsides, such as the loss of space from other rooms.
“Careful consideration has to be given to what you're losing by adding one. If you'll be eating into the space of another room, consider how that might affect the overall appeal of the property.”
Landscape the garden (↑5-20%)
The value of a home is not just determined by its interior features and location but also by the quality and usability of its outdoor space. Landscaping the garden is an impactful way to enhance the appeal and functionality of a home that can significantly sway potential buyers. Whether it's using decking to creating an outdoor entertaining or ensuring the garden is low-maintenance, a thoughtfully landscaped garden can add anywhere from 5% to 20% to your home's market value.
“Gardens are an often overlooked opportunity to add value to our homes. Take care to ensure the style of the garden appeals to the types of people who will most likely be interested in your home. For example, young families are likely to appreciate a large flat grass area for the children to play on, whereas a couple in their older years may prefer a lower maintenance garden without too many steps.”
“A well-thought out space will add the most value. Entertaining space is paramount.”
Add a garden room (↑5-20%)
Garden rooms have emerged as a highly sought-after feature for homeowners, especially in the era of remote work and the growing desire for additional living spaces. Whether used as a home office, a gym, or a creative studio, the addition of a high-quality garden room can significantly boost your home's value. According to our property experts, the potential increase in market value ranges from a modest 5% to an impressive 20%, depending on the garden room's specifications.
“With the rise in popularity of people working from home, garden rooms have become very popular, particularly when extending the main home is difficult. Anything from around 5-20% increases in property value can be achieved by adding a garden room though, depending on the size and facilities the garden room offers.”
Add off road parking (↑5-20%)
With the rise in urban congestion and the increasing difficulty finding on street parking, having off street parking can enhance a properties value. However, the impact on property value is not uniform and depends greatly on the parking difficulties in a particular locality and number of spaces created. Depending on location our experts attribute a 5-20% uplift in property value.
“I believe the average would be 5%, increasing if there is space for two cars and increasing further in city centres and prime locations. Given a parking space in a prime Central London location can go for upwards of £100k, the ability to create off-road parking at a property could result in a considerable value uplift. This will become ever more important with the ongoing shift to electric vehicles and the need for off-street parking for charging purposes.”
“Off-road parking can add up to around 10% of your house vlaue, but this will go up if you live in a busy or populated area such as a large city. The more spaces you have will add to the value too, and a locked garage can also add up to 20% of your house value.”
Sell with fresh and neutral decor (↑5-10%)
One of the simplest strategies to enhance a properties appeal is through refreshing its interior with fresh and neutral decor. This provides a blank canvas that allows prospective buyers to easily imagine themselves and their belongings in the space. According to our property experts, this cost-effective improvement can boost a property's value by 5-10%.
“Many under-estimate how much value you can add simply by refreshing an outdated property with a fresh, neutral colour scheme. Most buyers prefer properties they can move into and live with, gradually improving over several years rather than properties they will immediately need to redecorate every room. It's one of the cheapest improvements you can do - for many people it's just a DIY job.”
Add new double glazing (↑5-10%)
Replacing outdated or inefficient windows with new double glazing can be a strategic investment to increase market appeal. High-quality double-glazed windows can significantly reduce energy bills by providing better insulation and make your home more attractive to potential buyers that have an eye on energy efficiency. This upgrade also enhances the aesthetic appeal of your property and contributes to a quieter living environment. According to our experts, the installation of new double glazing can increase a property's value by approximately 5-10%, making it a worthwhile consideration for homeowners looking to improve their home's market value and appeal.
Appendix: Data collection process
In February 2024 we interviewed the following residential property experts:
Rob Wood, Construction Expert, www.simplyextend.co.uk
Dave Sayce, Managing Director, www.comparemymove.com
Mark Poole, Property Investor, www.smarterpropertyinvestment.com
Richard Mews, Property Expert, www.sellwithrichard.co.uk
Paul James, Property Investor, www.propertyroad.co.uk
Our questions for them were as follows:
How much value does renovating the kitchen add to the average UK home?
How much value does creating a large open plan kitchen diner add to the average UK home?
How much value does renovating the main bathroom add to the average UK home?
How much value does the addition of an ensuite bathroom (main bedroom) add to the average UK home?
How much value does the addition of a downstairs toilet/washroom add to the average UK home?
How much value does the addition of a large upstairs bedroom (via extension or loft conversion) add to the average UK home?
How much value does the addition of a large downstairs bedroom (via extension or garage conversion) add to the average UK home?
How much value does landscaping the garden add to the average UK home?
How much value does the addition of a garden room add to the average UK home?
How much value does the addition of off-road parking add to the average UK home?
How much value does the addition of planning approval add to the value of the average UK home?
Are there any other home improvements that add a lot of value? If so how much value do they add?