A study by MoveStreets, the property portal designed for the mobile generation, has found that garden offices, garage conversions and kitchen renovations are money well spent when it comes to adding value to your home, while loft conversions and solar panels will actually cost you money when you come to sell.
Current property market
The property market is extremely buoyant and has gotten off to its best start in 17 years and it’s a good time for those looking to sell their properties. Stock levels are still low and competition amongst buyers is fierce and house prices continue to soar.
The research from MoveStreets has found that sellers looking to maximise the value of their home in current market conditions might be surprised to find that every renovation project will not add as much value as they anticipate, particularly when the cost of carrying it out is considered.
MoveStreets looked at 12 common property projects, how much value they add to a home based on current market values and what’s left once you account for the cost of the work involved.
Best way to add value to your home
The findings reveal that the best way to add value to your home is with a garden office. On average it will cost you almost £9,000 to complete, but it will add 8.4% to the value of your home. That’s £22,739 in the current market, meaning an overall value increase of £13,752 once the cost of the work is accounted for.
A garage conversion is also a profitable addition to your home, costing £14,500 but adding £27,071, leaving £12,571 in added value.
Updating your kitchen could add just shy of £15,000 to the value of your home and will cost around £8,500 to do, leaving a tidy profit of over £6,300.
Other projects that add value once the cost is accounted for include adding a conservatory (£6,000), redecorating your home (£5,500), renewing your boiler (£2,600), upgrading your bathroom (£2,000), replacing your windows for double glazing (£1,500) and replacing your roof (£892).
Landscaping your garden does add some value, but once the cost of the work is accounted for this added value sits at only £40.
Renovations that aren’t cost-effective
However, those considering fitting solar panels or a loft conversion may want to reconsider. Doing so will actually cost you around £5,000 once the cost of the work is accounted for, so it’s probably not worthwhile if you’re thinking about selling soon.
Table shows the added value of each project before and after the cost of the work itself based on the current average UK house price of £270,708 | ||||
Renovation / improvement | Estimated added value (%) | Estimated added value (£) | Estimated average cost | Actual added value |
Garden Office | 8.4% | £22,739 | £8,987 | £13,752 |
Garage conversion | 10.0% | £27,071 | £14,500 | £12,571 |
Kitchen | 5.5% | £14,889 | £8,528 | £6,361 |
Conservatory | 6.0% | £16,242 | £10,250 | £5,992 |
All over re-decoration | 3.1% | £8,392 | £2,973 | £5,419 |
Boiler / central heating | 1.9% | £5,143 | £2,500 | £2,643 |
Bathroom | 2.6% | £7,038 | £4,950 | £2,088 |
Double glazing | 3.0% | £8,121 | £6,575 | £1,546 |
Roof | 3.1% | £8,392 | £7,500 | £892 |
Landscaped Garden | 1.4% | £3,790 | £3,750 | £40 |
Fitting solar panels | 0.5% | £1,354 | £5,875 | -£4,521 |
Loft conversion | 10.8% | £29,236 | £34,500 | -£5,264 |
