Homeowners wrongly believe that a new kitchens or bathrooms is the most valuable property improvements but estate agents differ, with loft conversions and extensions offering over £28,000 more value on average – with lofts adding a staggering £45,000 to the average London property.
Giacomo Gigantiello, unsecured loans sales leader at GE Money Home Lending, commented: “Homeowners planning improvements to their homes this summer to specifically increase the value of their property could be missing out on the most valuable additions. At a time of year when many are planning to improve the value and desirability of their homes, it is important that consumers appreciate and establish DIY and renovation tasks which will add the most equity to their particular home.”
Research by GE Money Home Lending found the top three modifications homeowners opted for - combined - would not increase the value of a home by as much as an estate agent’s top choice – a loft conversion.
Average UK homeowners could improve the value of their home by almost £42,000 by carrying out estate agent valuers’ top two recommendations of a loft conversion and a room extension. However, homeowners’ top two choices, of a new kitchen and bathroom, would add on average only £13,400. Even more surprising is that more people think simply redecorating rooms adds more value than a loft, an extension or a conservatory.
Giacomo continued: “In many cases homeowners automatically opt for a new kitchen or bathroom. Whilst these are valuable additions to any home, the findings from this research show that it is also important to consider improvements that will ultimately increase a property’s living area.”
Best value home improvements differ considerably, both in type and value, depending on region and style of property. In the more metropolitan and densely populated areas of London and the South East, loft conversions on average offer the best potential increase to a property’s value, adding as much as £44,500. However, in Yorkshire, conservatories backing out onto open spaces benefit properties most, adding almost £25,000.
Even estate agents’ widely considered least profitable improvement, outdoor decking, varies hugely on location. In built up areas such as London, where making the most of any outdoor space is important, decking adds on average £2,350. In contrast, in the countryside dominated South West, a decked or terraced area adds only £470.
