Homing in on the best way to add value to your house

Prefer to stay put and renovate rather than move? Here are some expert tips for the projects that promise the best returns...

Increasing numbers of homeowners are avoiding the expense – plus the physical and emotional upheaval – of moving house by staying put and renovating instead. In fact, the number of people choosing to do this has risen fivefold since 2013, according to a recent report by Hiscox Insurance, rising from 3% of households to 15%, representing more than four million homes in the UK.

Supporting the notion we’re becoming a nation of home-improvers, figures from Halifax show planning applications have risen by a quarter over the last five years. So what improvements are they making? According to the research, homeowners are most likely to either renovate a bathroom or add a new one, followed by kitchen improvements, installing a new boiler or central heating system, or creating more living space. But not all home improvement projects automatically add value.

“Cheap is cheap – nothing kills the value of a property more than doing cheap work on it,” says Ash Chawla, chief executive of the design/build company Duke of Design (dukeofdesign.co.uk).

So, what does Duke of Design recommend? Here are six home improvements Ash says could be a wise investment...

Conservatories

The simplest home addition is a conservatory, which Virgin Money research says can raise the value of your home by as much as 15% if it’s included as part of an extension or by 5% if it’s just a simple conservatory. “The key is to use materials other than the commonly-seen white UPVC,” Ash says.

“A muted, more sophisticated palette of taupe and grey-painted wooden frames camouflages itself in a natural setting, and the reflective properties of glass help it blend into the outside space more easily.”

Extensions

Estate agents surveyed by Hiscox believe the best way of spending money on your home is by building an extension, saying the addition of a new bedroom could boost the average home’s value by 11.2%. They reckon a new kitchen, meanwhile, will typically increase a home’s value by 5.5% (or £12,400 based on an average UK house price of £226,071).

Remodelling

Remodelling a kitchen – by adding high-quality units and flooring, purpose lighting and redecorating – could increase a property’s value by as much as 4%, says the Royal Institution of Chartered Surveyors.

“The most successful kitchen extensions consider the whole home,” says Ash.

“By removing internal walls, you can connect the kitchen to the dining room, creating a functional space for entertaining.” Garden landscaping

For family-sized homes, ensure the outdoor space is suitable for the growing needs of a family with low-maintenance planting and landscaping, while a small courtyard garden at a city apartment may appeal to younger working couples. The cost of landscaping a garden can be as little as £2,000, but Ash says spending a little more can lead to a potential return of £40,000 on a £500,000 house.

Parking

Most towns and cities have a parking problem, says Ash. “By providing viable parking facilities, you can increase your property price dramatically,” he adds. You could either convert land at the front or side of your property to add a driveway or parking space, or add a garage – possibly by converting an existing outside building, if there’s suitable access, or by building a garage extension.

Loft and basement conversions

The Hiscox report says loft extensions are the most popular planning request. The Nationwide Building Society says the average cost to convert an attic is around £20,000, which rises to about £35,000-£45,000 if you’re creating a dormer loft with double bedroom and bathroom.

Ash says: “If financial gain is your goal, converting the loft into a usable room is the way to go. The benefits of adding an additional bedroom to your property can be huge

– loft conversions can add as much as £65,000-£75,000 to your property value.”

Ash says a basement conversion is complicated and potential problems, such as water ingress and foundation issues, can be major concerns.

Instead of moving house, more and more people are opting to renovate their home, such as by adding a conservatory.