It’s no secret that we Brits are obsessed with our homes and love adding value to our properties. But do you know which home improvements add the most value? Should you go for a designer kitchen or a budget one? And will it make a difference to the selling price?
In recent research, Royal London asked homeowners in the UK how much more they would offer on their next home if the property had certain improvements.
Here I check out which home improvements are likely to add the most value to your home. I also take a look at how to decide on home improvements. Should you go for that gold bathroom or pink garage door?
Home improvements that add the most value
Us Brits love our kitchens, and it’s perhaps no surprise that they came top of the list for adding value to our homes. Royal London found that a new kitchen can add £11,160 to the price of an average home costing £274,615.
Other revamps that add the most value include a modern bathroom, a loft conversion and a new boiler and heating system. Here are the figures in full:
- Kitchen – £11,160
- Modern bathroom – £10,915
- Loft conversion – £10,845
- Spare bedroom – £10,744
- New boiler/heating system – £9,647
- Modern windows – £9,597
- Garage conversion – £9,503
- Landscaped garden – £9,502
- Conservatory – £9,390
- Modern doors – £8,601
It’s worth bearing in mind that these figures are based on someone buying the average priced house. Those surveyed were asked what percentage they would increase an offer by if the property had different features. This percentage was then calculated against the average UK house price of £274,615.
This means that if you have a house worth a lot more than the average, then these home improvements may add even more value.
Home improvements often add less value than they cost
You may notice from the list above that many home improvements could add less value to your home than the amount they cost. For example, a loft conversion usually costs at least £25k, but may only add £11k to your selling price. This means that you will often only recoup part of the cost of your home improvements.
Despite this, many home improvements may still be worth it for you and your family. After all, your house is a home as well as an investment.
How to decide on home improvements
So, how do you decide on the home improvements that are right for you? Well, if you’re going to be living somewhere for a while, then adding value is only one factor to weigh up.
Here are seven key questions to consider when planning the home improvements to invest in:
- How do you use your home? If you have three kids and need an extra bedroom, then a loft conversion may add a huge amount of value for you as a family. In theory, a loft conversion may cost more and add less value than a new bathroom, but it might be worth more to your family because it gives you the space you need.
- Will you enjoy your home more with this improvement? You may want a designer kitchen that costs more than £11k. If you love it and have enough cash, then it could be worth it.
- Can you afford it? Many people add additional spending onto their mortgage. Others add the cost of home improvements onto a credit card or personal loan. Think carefully about whether you can afford the repayments.
- Is there a cheaper alternative? If you need a home office but can’t afford building work, then you could consider a garden room.
- Can you do the work yourself? If you are really handy, then this could be a way to save costs. Be careful though, as you need to make sure any work is building regs compliant.
- When are you planning to move? If you plan to stay in your home for more than 10 years, then it’s probably more important that something will add value to you as a family even if it won’t increase your selling price. You will live there for a while, so it makes sense to revamp your home to suit your personal needs and style. Time for a pink kitchen anyone?
- Will it add value to your home? This is an important factor, especially if you plan to move in the near future. Find out what trends are popular and don’t go for anything too wacky if you’re thinking about selling soon.
Once you have completed your home improvements, it’s time to sit back and enjoy your lovely home. Will you recoup the cost of that designer kitchen? Possibly not, but who cares as long as you get to enjoy it?
The post The home improvements that add the most value to your property appeared first on The Motley Fool UK.
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