How Much Does Renovation Increase Property Values?
Not all home improvements are considered equal. If you are looking to sell or rent out a property, renovating the property prior to selling is key to elevating its value. This doesn’t just mean you start from scratch or choose the most expensive and luxurious refurbishment, nor does it mean just spending the minimum with a lick of paint and hoping it will increase the value of property.
These days more and more people in the UK are renovating their property. There is growing data on how much value renovation can add. A basic renovation such as full re-decoration, can elevate the value of the property by 3.1%. A heavy renovation such as an extension can add up to 11.2%. On an average priced house in the UK (£256,000), a re-decoration could add £7,936, while an extension could add up to £28,672.
We will look at a number of different factors that contribute towards the profit of home improvements. Loft conversions can increase the value of a 3-bedroom house by up to 16%, bathroom remodel increase by 4% and so on.
Kitchen renovations top the list as they add the most value and tend to make a profit in the long run, particularly if you are replacing outdated appliances with modern ones. A minor kitchen upgrade such as changing cabinet doors might only add little value to your home as it is more likely to be considered as decoration. While a full renovation with new appliances, tiling and new countertops could add 10% – this equals around £25,000 on a £250,000 home, a fantastic ROI considering most kitchen renovations cost between £10,000 and £15,000
It is a popular upgrade and has great return on investment, particularly if the bathroom is of a dated style and there is some damage. Renovation can add 4% to the value of your property. Bathroom remodel is a considerable option in holiday lets though, adding up to 11% to the rental value, for the guests looking for spa-like escape.
Loft conversions aren’t often the most popular home renovation, but are considered valuable both for selling and renting your home. There’s no need to sacrifice outdoor space as you would need to for an extension, but you can gain valuable space indoors that can be used as bedrooms, bathrooms and even work spaces.
The return looks little compared to others, but converting your loft by adding another bedroom can bump up the value of a £250,000 house by around 16%, taking it to a selling price of just shy of £300,000.
Along with these conservatory, eco-friendly upgrades, single garage, smart home tech and many other renovations can add value to your home.
But remember, according to experts;
Don’t forget that increased value doesn’t always increase your return, and that even a positive ROI doesn’t always equal profit. It is also important to make sure that the pricing for your improvements matches the prices of your house – spending huge amounts on a property that is below the average value is unlikely to have good returns.