The home improvements that add the most value to your property
Source: Getty Images
Share this page:
It’s no secret that we British are obsessed with our homes and love adding value to our properties. But do you know which DIY jobs offer the most added value? Should you choose a designer kitchen or a budget kitchen? And will that affect the selling price?
In a recent study, Royal London asked UK homeowners how much more they would offer for their next home if the property had certain improvements.
Here I am reviewing which home improvement projects are likely to add the most value to your home. I’m also looking at how to go home improvement. Should you go for the gold bathroom or the pink garage door?
Do-it-yourselfers with the greatest added value
We British love our kitchens, and it’s perhaps no surprise that they were high on the list when it comes to adding value to our homes. Royal London found that a new kitchen could add £ 11,160 to the price of an average home from £ 274,615.
Other modernizations that offer the greatest added value include a modern bathroom, a loft extension and a new boiler and heating system. Here are the full numbers:
- Kitchen – £ 11,160
- Modern bathroom – £ 10,915
- Loft remodeling – £ 10,845
- Spare bedroom – £ 10,744
- New boiler / heating system – £ 9,647
- Modern windows – £ 9,597
- Garage remodeling – £ 9,503
- Landscaped garden – £ 9,502
- Conservatory – £ 9,390
- Modern doors – £ 8,601
It’s worth noting that these numbers are based on buying a home with an average price. The respondents were asked by what percentage they would increase an offer if the property had different characteristics. That percentage was then calculated using the average UK house price of £ 274,615.
That means that when you have a home that is worth a lot more than average, those home improvement jobs can add even more value.
Do-it-yourselfers often bring less value than they cost
You can see from the list above that a lot of home improvement can add less value to your home than it costs. For example, a loft conversion typically costs a minimum of £ 25,000 but may only add £ 11,000 to your selling price. This means that often you will only amortize part of the cost of your home improvement.
Even so, many do-it-yourselfers can be worthwhile for you and your family. After all, your house is both a home and an investment.
So you choose do-it-yourselfers
So how do you choose the right handyman? Well, if you are going to be living somewhere for a while, then value creation is just one factor to weigh up.
Here are seven key questions to consider when planning the home improvements you want to invest in:
- How do you use your home? If you have three children and need an extra bedroom, a loft conversion can add great value to you as a family. In theory, a loft conversion can cost more and be worth less than a new bathroom, but it could be worth more to your family because it gives you the space you need.
- Will you enjoy your home more with this improvement? You might want a designer kitchen that costs more than £ 11,000. If you love it and have enough money then it might be worth it.
- Can you afford it Many people add extra expenses to their mortgage. Others include the cost of home improvement on 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 construction, then you might consider a garden room.
- Can you do the work yourself? If you are really skilled, this can save you money. Be careful though, as you need to make sure that all work is compliant with the rules.
- When are you planning to move? If you are planning on staying in your home for more than 10 years, it is probably more important that something adds value to you as a family, even if it doesn’t increase your selling price. You will be staying there for a while, so it makes sense to remodel your home to suit your personal needs and style. Pink kitchen time, 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 hot and don’t go too crazy if you want to sell soon.
Once you’ve finished your home improvement, it’s time to sit back and enjoy your beautiful home. Will you recoup the cost of that designer kitchen? Maybe not, but who cares as long as you can enjoy it?
4 iron rules to save money on everything
Our editor Sam Robson has been on a personal cost-cutting mission for years – and it is time to share his wisdom.
Check out his best tips and tricks for saving in this free report. “Sam’s 4 iron rules to save money on everything”.
Simply enter your email address below for instant access to your free copy.
Was this article helpful?
About the author
Alice Guy is a personal finance writer and chartered accountant. She worked for KPMG London, EY and Tesco Plc before taking a break to look after her four children. Alice helps others improve their finances and have more control … Read more
Share this page:
Some offers on MyWalletHero come from our partners – this is how we make money and keep this site running. But does that affect our ratings? Nope. Our commitment is to you. If a product is not good it will be reflected in our rating or we will not list it at all. While we strive to offer the best products available, we don’t review every product on the market. Find out more here. The statements above are those of The Motley Fool only and are not provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard and Tesco.