Last month, the number of people searching the term ‘home renovations’ online hit a new high, according to our analysis of Google Trends.
But the big question is - which improvements are going to add the most value to your home? And are there any that simply aren’t worth the trouble?
Our experts shared the below three home changes that could add an extra 16% value to your home altogether.
- Adding an annex – £15,000 or 5% of the average house price. Whether it’s moving the in-laws in or creating a separate area in the house to work from home or workout - extra space is becoming increasingly popular amongst UK homebuyers. According to a recent survey, homebuyers ranked this as the most valuable home improvement in their eyes, worth an estimated £14,385.1 That equates to 5% of the average UK house price2 – though could be more if you’re prepared to go even bigger and make it self-contained.
- Converting loft space - £13,000 or 5% of the average house price. If you’re not able to build an extension, converting loft space could be much cheaper and straightforward. Loft conversions can be anything from creating an extra bedroom, to raising the roof and changing the whole upstairs structure. Homebuyers say a loft conversion is worth £12,9513 in their eyes, equating to 5% of the average UK house price. Meanwhile, separate research from Nationwide Building Society found adding a double bedroom and a bathroom in the loft could add more than 20% value to a home.4
- Create a bigger kitchen - £11,500 or 4% of the average house price. If you’ve been dreaming of that bigger kitchen, don’t put it off any longer because this is a huge positive in the eyes of a homebuyer. While a kitchen extension to create a large kitchen diner could add an extra £11,514 to your home value, a newly renovated kitchen could also add a further £10,649.5
So, for anyone considering giving their kitchen a revamp, now is the time to do it if you want to enjoy it for yourself too.
Sally Conway, Head of Consumer Communications concluded:
“Whatever your budget, making small or large improvements to your home can have a significant impact on the value of your property. Whether you’re looking to add appeal for potential buyers, or you want to give your home an upgrade to enjoy yourself, investing in your home could be one of the best decisions you make.
“We’ve seen a rise in demand for home improvement loans in the last month, with Brits clearly tiring of spending so much time at home and many eager to take on a new challenge. From kitchen revamps to full on extensions, now could be the perfect time to give your home a facelift, ready to welcome friends and family back as soon as restrictions lift.”
We compiled a list of the home improvements that probably aren’t always worth the effort if it’s adding value to your home you’re looking for.
- Garden accessories - Retailers have seen a sharp rise in sales for garden items throughout lockdown, with John Lewis reporting a 331% jump in patio heater sales, 140% increase in fire pit sales and 172% rise in outdoor lighting sold.6 However, while these are all clearly in-demand items to have in your garden, they’re unlikely to actually add value to your home. Particularly if you plan to take them with you when you sell! It’s important to also consider potential buyers may have their own vision so make sure you put some thought into it before splurging. Although they might not necessarily add monetary value, a garden makeover can really brighten up your outdoor space and provide a haven for you to enjoy over the Summer months. Especially as we spend more time outside due to current restrictions.
- Open plan living - More than half (57%) of people expect to work from home on average three days per week in the future, while 13% expect to do this five days a week.7 Working from home has probably had the biggest influence on what homebuyers are looking for in a new home over the past year, with extra space now being key. However, while more space grows in popularity, open-plan living is decreasing in popularity at the same time. People would now prefer configured spaces to work in, meaning more rooms of a smaller size are becoming more valuable, rather than one big room8.
- Garage renovations - While your garage might seem like the perfect space to convert into an office or a home gym, it’s important to keep your future buyer in mind when doing so. Unless you live in a city, the majority of people will have cars and somewhere safe to keep a car is a big plus when looking for a home to buy. Particularly if you’re selling in the near future, it could be best to leave your garage untouched so buyers can make their own mind up about what to do with the space.
* Please note that Shawbrook is not affiliated with the sources that have been mentioned in this article. All figures are based on average house prices, so the value of your home improvement could fluctuate depending on the value of your home.
6John Lewis Flexible Living Report, 2020
7John Lewis Flexible Living Report, 2020