Whether considering extra space, a hot tub, removing period features or paving over the garden, they find it almost impossible to agree. With more than one in five borrowers taking out a loan to improve their homes, A&L Personal Loans warned some alterations may actually lower the value of their property.
To add value, estate agents are more likely to favour improvements that create space or improve decoration, whereas consumers are more likely to support leisure add-ons such as garden makeovers or hot tubs.
Seven out of ten (70 per cent) of estate agents say by far the best improvement to increase the value of your home is to add extra living space downstairs, yet only 50 per cent of UK adults see the value of this work. According to agents, the next best improvements are a new kitchen (65 per cent), extra bedroom/study (57 per cent), and garage (42 per cent), but fewer consumers agree (at 58 per cent, 42 per cent, 38 per cent respectively). Consumers are also less likely to agree that internal, external decoration or replacing period features will add value.
More consumers than estate agents believe their property value will soar if they add a conservatory, have a garden makeover or even install a hot tub or swimming pool. Around 5 per cent of adults believe a hot tub or a swimming pool would add value to their property, particularly in younger age groups (19 per cent of under-25s), while less than 1 per cent of estate agents agree.
According to estate agents, the 'improvements' that are a sure-fire way to send a property’s value falling are poorly fitted cupboards and kitchens (65 per cent), ‘loud’ external decoration (65 per cent), polystyrene ceiling tiles (63 per cent), and the removal of period features. Yet fewer consumers agree (at 58 per cent, 51 per cent, 59 per cent respectively). While 55 per cent of agents say removing classic features will harm value, only 34 per cent of consumers agree.
Most UK adults are more concerned about the damage that poorly fitted tiling, cheap laminate flooring, paved over gardens and woodchip walls might do to value, whereas many estate agents feel these to be the least important.
Perhaps influenced by the plethora of home makeover shows, consumers are least concerned by loud internal decoration – only 29 per cent say it would detract value, compared to 36 per cent of estate agents.
Men and women also disagree. Men value the quality of workmanship, while women worry about décor. Among the worst features for men are homemade cupboards (60 per cent vs. 56 per cent for women), bad tiling (55 per cent vs. 49 per cent for women) and cheap, badly fitted laminate floors (50 per cent vs. 40 per cent for women). Women are more concerned about the effects on value of patterned carpets (39 per cent women, 27 per cent men), removed period features (37 per cent women, 28 per cent men) and non-neutral external decoration (53 per cent women, 46 per cent men).
Richard Al-Dabbagh, senior marketing manager for loans at Alliance & Leicester, commented: “Whatever we may think of them, estate agents are the experts when it comes to what helps or harms a sale. They conduct valuations of properties on a daily basis so they know that, while you may be proud of your carpentry attempts in the kitchen, they will deter most potential buyers.
“A personal loan can be one of the most cost effective ways to enable ‘home improvements’ but when considering borrowing money for home improvements it is vital that your planned alterations really do count as improvements.”
